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“Is Fair Trade fair “ Discuss for and against the establishment of Fair
Trade Initiatives.By
John Thompson
What is fair Trade?
The World Fair Trade Organisation defines fair trade as a trading partnership, based on dialogue,transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to and securing the rights of marginalised producers and workers especially in the developing countries.
Aims of Fair Trade
• To promote and ensure that producers and farmers obtain fair and stable prices for their products.
• To promote product standardization,product trade marks,working,health and environmental conditions.
• To improve the living conditions of poor producers and farmers during product drop down.
Merits of Fair Trade
• It enhances the living condition of producers and their families.
• It is an instrument to assist those farmers who suffer from natural disaster such as earthquakes and drought.
• It promotes campaign against conflicts and war.
Demerits of Fair Trade
• It deteriorates the circumstances of those who live in developed countries, in contrast it accelerates the benefits of those who take advantages from persons living under such an inadequate conditions.
• Tariffs are much lower for non-processed supplies than for processed products, therefore it may be non-profitable for producers to export. Producers are not encouraged to invest on processing facilities thereby impeding their development efforts.
Conclusion
• The fair trade initiatives have stabilized due to the fact that programmes were started by the organisations in order to raise the standard of living conditions for persons in developing nations.
• The fair trade is considered as fair, since the numerous benefits are made by way of incentives and subsidies that has been provided for producers in developed countries.
Bibliography
• A fair trade hub <http ://www.fair-trade-hub.com/disadvantages-for-fair-trade.html> accessed 20-10-2010
• Fair trade at work <http://fairtrade at work.c2/advantages-of-fairtrade.html> accessed 20-10-2010
• WFTO http://www.wfto.com/index.php?option=com-content&task=view&id=1&=itemid=13 accessed 20-10-2010