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Is fairtrade fair


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Is fairtrade fair

  1. 1. Is Fair-trade fair?Is Fair-trade fair? Team of Legal Research Thomas Henry Gummer Soon Lee Tan Ng Wai Yen Ian Wong
  2. 2. DefinitionDefinition  Fair Trade is a trading partnership, basedFair Trade is a trading partnership, based on dialogue, transparency and respect,on dialogue, transparency and respect, that seeks greater equity in internationalthat seeks greater equity in international  It contributes to sustainable developmentIt contributes to sustainable development byby offering better trading conditionsoffering better trading conditions to,to, andand securing the rights ofsecuring the rights of,, marginalizedmarginalized producers and workersproducers and workers – especially in the– especially in the SouthSouth..
  3. 3. HistoryHistory  Curtail the exploitation of coffee pickers inCurtail the exploitation of coffee pickers in Dutch colonies.Dutch colonies.  Fair-trade foundation in 1992Fair-trade foundation in 1992  Worldwide recognised brand/labelWorldwide recognised brand/label¹¹ ¹
  4. 4. RoleRole  Assist developing country workersAssist developing country workers  Bringing togetherBringing together producer and consumerproducer and consumer in a citizens’ movement for a changein a citizens’ movement for a change  Tool to ensure disadvantaged farmers andTool to ensure disadvantaged farmers and workersworkers receive a better dealreceive a better deal
  5. 5. Alleviating Poverty?Alleviating Poverty?  Plough back into producerPlough back into producer communitiescommunities by retailer by charging aby retailer by charging a higher premiumhigher premium  FLO acts as a catalyst forFLO acts as a catalyst for increaseincrease product quality and better workingproduct quality and better working conditionsconditions  A strategy for poverty alleviationA strategy for poverty alleviation  sustainable development acrosssustainable development across developing countriesdeveloping countries²²²<> accessed in 20/10/2010
  6. 6.  FLO is praised that well meaning moveFLO is praised that well meaning move towardstowards increasing opportunities forincreasing opportunities for poor producers of goodspoor producers of goods ..  People like thePeople like the idea of helping peopleidea of helping people not with hand outsnot with hand outs but opportunity tobut opportunity to work hard and decentlywork hard and decently  UK food retail industriesUK food retail industries supportsupport such assuch as Co operative, Waitrose, M & S…..Co operative, Waitrose, M & S…..
  7. 7. A mere marketing toolA mere marketing tool  ““exploiting customer goodwillexploiting customer goodwill” by adding” by adding additional mark ups to fair trade for theiradditional mark ups to fair trade for their own profitown profit  Regulation stop many farmers from qualifyRegulation stop many farmers from qualify for fair trade salesfor fair trade sales
  8. 8.  Out of every 10 pence made in mark upOut of every 10 pence made in mark up only 0.01 pence is received by producersonly 0.01 pence is received by producers  Fair trade helps landowners, rather thanFair trade helps landowners, rather than the agricultural labourers who suffer thethe agricultural labourers who suffer the severest povertyseverest poverty  Fair-trade rules actually make it harder forFair-trade rules actually make it harder for labourers to gain permanent, full-timelabourers to gain permanent, full-time employment.employment. Adam Smith InstitutionsAdam Smith Institutions ³³ ³.-‘Adam Smith Institute: Fair trade is unfair, says think-tank’ (25th Feb 2008) < $1207231.htm.> , accessed 20th October 2010
  9. 9. ConclusionConclusion
  10. 10. ConclusionConclusion