Issue

Fair trade

The global price of coffee beans has dropped 50% in the past three years. So what's really swirling around in your coffee mug? Fair trade advocates say it could be poverty for millions of people.

Submitted 23/03/2006 By rachelhiggi Views 69943 Comments 24 Updated 1/05/2007


Photographer : Trent Roche


What is fair trade?

The fair trade movement began in the late 1950s as an attempt to aid Chinese refugees in the US. Today, the International Fair Trade Association includes over one million producers and 3,000 organisations in 50 countries.

Fair trade is a response to increasing globalisation. According to Oxfam and other fair trade advocates, large, developed nations like the US, UK and even Australia, pay their farmers to overproduce crops like coffee, corn and wheat. This overproduction drives crop prices down. The excess is then sold to underdeveloped or developing nations at absurdly low prices. This drives local farmers out of business, because they can’t compete.

The fair trade movement aims to give these small local farmers a chance. Fair trade organisations work with local producers to sell goods on a global scale. Fair traders produce everything from earrings to chocolate to flour and wheat. So if you’re in the market for an organic, ecologically and economically friendly cup of joe, an organisation can act a agent between you and a coffee farmer in Honduras. Through fair trade, you can buy coffee from that farmer, and she’ll get most of the profits, instead of large corporations.

The fair trade movement also supports equal pay for women, eco-friendly modes of production and, safe and healthy work environments.

In this way, the main goal of fair trading is to end world poverty by establishing millions of successful, independent, local producers in developing countries such as Ghana, India, Sri Lanka, Mexico and dozens more.

One big barrier

Fair trade advocates often argue that their biggest obstacle is the World Trade Organisation (WTO). The WTO is an organisation of 149 member nations that meet regularly to discuss global trade agreements. Many of the member nations put high taxes on imported goods and subsidies for domestic farmers in order to promote their own economies, with the cooperation of the WTO.

Fair traders argue that, while these trade decisions may be beneficial for one or two nations, they are detrimental to the global economy and are the reason why many developing nations are still impoverished. Fair traders believe the WTO has a responsibility to promote fair trade rather than a trade system that benefits only a few wealthy nations.

How do I know this?

IFAT: The International Fair Trade Association, http://www.ifat.org/

Make Trade Fair, http://www.maketradefair.com

Oxfam Australia, http://www.oxfam.org.au

Peace Coffee, Barriers to Fair Trade: The WTO, https://www.peacecoffee.com/pcfg/0308/wto.html

Discuss Now

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Kev - Lives - Here 24-Jul-2008

Cross-posting = proponents of trade liberalisation are (obviously) not so good at getting their real message out. This site:
http://ictsd.net/

Has good info (though quite technical)... can't seem to find a more general info site.

To address Adrienne's comment, damn straight. Fair trade access is crucial. Not sure if protectionism is the right response to MNCs or "foreign dumping" but this is a debate that we should all be having now.

Funnelweb - again mate the picture! Heard the term rock-spider? Not something you want to be associated with, especially as a HR conservative like yourself...

Public transport is woeful in NSW (though we face constraints such as sheer land size) - I haven't seen the private sector deliver in north west Sydney, where I'm from - what do you propose? Personally I would like to see much more competition for public transport services, which I think will happen as high petrol prices start changing ppl's transport preferences.

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funnelweb 28-Jan-2008

Hi Kelly Simpson - why do you urge people to boycott the cocacola company but support Woolworths Ltd? I am just curious.

I agree with your comment that reducing consumption reduces our ability to be a viable market.

I also support your encouragement for people to use public transport such as buses - however it isn't always a viable option given the woeful public transport available in Australia, especially in New South Wales.

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Kelly Simpson 08-Jan-2008

Carry your own bottle of water around and don't buy Mount Franklin or Pump bottles, owned by Coke (I think).

If you buy a bread roll and a piece of fruit from Woolies for lunch, it's healthy and cheap and means you won't be spending excess money on McDonald's.

There are plenty of ways to add some minimalism into your life.

Decorate your own calico bag and take it with you, rather than causing Woolies to make excess amounts of those green bags.

Walk or catch the bus rather than giving money to oil companies for petrol.

Support not for profit organisations (this website has a great list of them) and non-government organisations.

If we reduce our consumption, we'll reduce our status as a viable market.

Imagine how good Australia could be, then work on that.

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adrienne 17-Dec-2007

Fair trade and globalisation is a major issue facing the international arena, as nations need to protect their labour markets and businesses from dumping, cheap labour, specific MNCs etc. How can poorer countries be expected to develop when they have to compete with rich nations who can exploit the poorer nations to their own advantages?

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ethicool 11-Sep-2007

there is many different angles to argue, but the point of the matter is simple, do we want to try and make a stand against slave labour conditions & exploitation of human rights? True it's not always possible to do & yes it is only a small step, but isn't it a small step worth taking?? If we can support producers who are producing goods ethically, and trade in a way that enables them to produce their products & receive enough money to improve their living conditions wouldn't we rather do that than continue to exploit workers & pay big company executives more? I have recently started an ethical clothing company and found out that it is very difficult to get some things 'fair trade' accredited but you can still support traders who are making a step towards supporting themselves & giving back to their local communities. It is a great feeling to know that an order of scarves has the small group of women dancing instead of struggling, that their children go to school instead of working. Check out www.ethicool.com.au for more details of the suppliers I'm working with. It may only be a small difference, but isn't impacting on these lives worth it? I am finding the hardest thing is competing with big labels. Stores wont stock these products because they don't want customers to start to question where the other stuff is from, so I am doing all my sales on line & through markets. PLease spread the word and encourage friends & family to have a look & if they like the gear buy it. I can promise it will have a positive effect on the lives of others, and the more gear sold the more can be ordered. Let me know what you think...

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