Fair Trade

1
Fair Trade

• Being responsible consumers

2
What is trade?

• Trade is buying and selling.
• This happens
• between individual people
  (e.g. at the market or in shops)
• between countries.

3
How does trade between countries work?

• Some countries (often poorer countries) produce
  raw materials (e.g. cotton and coffee).
• Workers here are paid low wages because their
  cost of living is cheaper.
• These countries can therefore afford to sell raw
  materials at a cheap price.

4
How does trade between countries work?

• Governments in rich countries place tariffs
  (taxes) on imported goods and limit the amount
  that can be imported to help local producers.
• They also give subsidies to their farmers to
  encourage them to work in agriculture.

5
How does trade between countries work?

• Government aid causes farmers in rich countries
  to produce more than the country needs.
• This extra produce is sold at a very cheap price.
• Poor countries then have to sell their products
  cheaper than it is worth.
• Home producers run out of business because it is
  not worth it anymore to produce the goods. They
  get too little money for it.

6
Unfair working conditions

• Many times big international companies which have
  factories in poorer countries treat their workers
  very badly and give them very low wages.

7
Why fair trade?

• Small farmers in poor countries dont get the
  right price for their produce.
• Manufacturers, importers, distributors and
  supermarkets take most of profit
• E.g. only 1 of the price of a jar of coffee goes
  to the producer
• Fair trade groups make sure that farmers in poor
  countries get the best price for their crops.

8
Who gets the money?

• Group work
• Students work in groups to decide who gets the
  money we spend on bananas.

9
Why fair trade?

• The fair trade movement also makes sure that
  producers have good working conditions and fair
  wages.
• Fair trade aims to reduce global poverty.

10
Why fair trade?

• Farmers can form or join co-operatives.
• Co-operatives are given financial support to
  improve their community.
• Environment-friendly actions and recycling are
  encouraged.

11
How do I recognise
a fair trade product?

• These symbols can be found on different products
  which abide by fair trade principles.

12
Does fair trade really make a difference?

• The Fair Trade mark is only awarded to producers
  who
• Show democratic organisation
• Allow worker participation in a Trade Union
• Guarantee good housing, health and safety
  standards to workers
• Do not allow child labour
• Ensure that production techniques are
  environmentally sustainable.