FAIR TRADE FREE TRADE
DEFi Fair Trade is an organized social
movement and market-based approach
that aims to help producers in developing
countries obtain better trading conditions
and promote sustainability. The
movement advocates the payment of a
higher price to producers as well as social
and environmental standards.
It focuses in particular on exports from
Products developing countries to developed
countries, most notably handicrafts,
coffee, cocoa, sugar, tea, bananas, honey,
cotton, wine, fresh fruit, chocolate and
flowers.
The arms Support small producers of the
developing world. Small producers can
improve their lives and plan for their
future.
Cocoa is grown in fields filled with cocoa
Free trade is a largely theoretical policy
under which governments impose
absolutely no tariffs, taxes, or duties on
imports, or quotas on exports. In this
sense, free trade is the opposite
of protectionism, a defensive trade policy
intended to eliminate the possibility of
foreign competition.  
Free trade exists when nations can swap
goods and services without the constraints
of tariffs, duties or quotas.
Free trade lets nations concentrate on
manufacturing their specialties, which are
typically products other nations can’t
make or produce as well. With revenues
from selling such goods, nations can buy
products from other nations that they need.
 plants. For Divine chocolate, for example it is
grown in the southern regions of Ghana. At
harvesting time, the farmers cut the pods from
the trees. They cut the pods open with knives
How it and the slimy stuff the beans is scraped out.
works This needs to be done precisely as they For example, say two countries sit across
containing don't want to damage the beans. an ocean from one another. One
Once they have been harvested, the beans go specializes in raising beef, but has fallen
through a two stage process to prepare them to behind in technological fields. The other
be sold. These are called fermentation and
country makes some of the world’s best
drying. This gets rid of the bitter taste of the
cocoa beans and turns it into the flavor of electronics, but needs more beef. The two
chocolate that everyone loves. The beans are nations enter into a free trade agreement.
then dried and put into bags to be stored in fully Each lowers tariffs exporters must pay and
ventilated warehouses. The beans are then begin importing the other’s specialty.
bought by the producers of the chocolate bar.
They are shipped to different countries and
made into chocolate bars. Then
consumers/customers buy the product.
( ex: fair trade chocolate)

You should buy fair-trade products because it

provides more income for the unfortunate
farmers who must work day and night to get just
miniscule amounts of money. In the areas where
the cocoa is produced, the father is expected to
make all of the families money and so if they are
not paid properly the families will not be able to
eat properly and also they will not be able to
afford and education for their children, so their
children will not be able to grow up and provide
The reason money for their families
we should
buy fair
trade’s
product

Jennipher Wattaka is a member of Nasufwa

Growers Co-operative Society. It is a society
affiliated Gumutindo Co-op. There are 570
members and they produce a total of around 100
tonnes of coffee per year. Jennipher has a coffee
farm that is 2 acres and has 2,000 coffee trees.
She works full time as the parish chief
administrator as well as looking after her 6
children aged between 3 and 15. She also
studies evening classes for a qualification in
 public administration. Her husband works on the
farm full time and she helps out when possible.
Fair-Trade and the similar schemes help to
improve so many people lives. There is more
money for food and education and generally
better lives. It effects so many lives in a positive
The people way and is so important they have this chance to
have been make more money
helped by
fair trade.
Buying Fair Trade goods is beneficial to
everyone. For consumers, it gives them the
opportunity to help out communities and
farmers in need. It also encourages and
stresses the importance of social change,
along with promoting an equitable and just
global trading system. When a consumer
buys a Fair Trade good, it improves the
lives of the farmer and/or the community
who produced it.
For companies who carry products
produced under Fair Trade, having the
label on their goods means that they are
credible and want to have a positive impact
on the world. Customers probably view
them as trustworthy and will happily buy
products from them, knowing the purchase  It stimulates economic growth: Even when
limited restrictions like tariffs are applied, all
is going to a greater good. countries involved tend to realize greater economic
growth. For example, the Office of the US Trade
Representative estimates that being a signatory of
NAFTA (the North American Free Trade
Agreement) increased the United States’ economic
growth by 5% annually.
 It helps consumers: Trade restrictions like
tariffs and quotas are implemented to protect local
Benefits businesses and industries. When trade restrictions
are removed, consumers tend to see lower prices
because more products imported from countries
with lower labor costs become available at the local
level.
 It increases foreign investment: When not
faced with trade restrictions, foreign investors tend
to pour money into local businesses helping them
expand and compete. In addition, many developing
and isolated countries benefit from an influx of
money from U.S. investors.
 It reduces government
spending: Governments often subsidize local
industries, like agriculture, for their loss of income
due to export quotas. Once the quotas are lifted,
the government’s tax revenues can be used for
other purposes.
  It encourages technology transfer: In
addition to human expertise, domestic businesses
gain access to the latest technologies developed by
their multinational partners.

BTVN buooir sau là e có đồng tình với fairtrade ko?

Tức là đưa ra ý kiến đồng tình nó ntn không đồng tình ntn/ làm rõ 1 quan điểm /
không đứng chung chung/

DEFF: Fair Trade is an organized social movement and market-based approach

that aims to help producers in developing countries obtain better trading
conditions and promote sustainability. The movement advocates the payment of
a higher price to producers as well as social and environmental standards.
CONS:

 Fair trade often creates divides within communities as not all workers and
farmers qualify to be part of a certified cooperative or group.
 Fairtrade does not ensure better wages. For instance, a report by SOAS,
University of London, about Fairtrade in Uganda and Ethiopia found that
 wages in Fairtrade certified markets were very low. The report observed
that there was inadequate monitoring of pay and conditions by
certification schemes. Wages were usually lower than those in producers
without the Fairtrade certification in the same area and working on the
same crop.
 According to the same study, working conditions in Fairtrade certified
cooperatives were often worse than in non-certified.
 Keeping the accreditation is expensive and may be out of reach for some
local entrepreneurs.
 The impact of the movement is still reduced in scope as consumers can
only buy a few fair trade products.
 It is difficult to make sure that abusive labor practices are not
reintroduced after certifications are expired or abandoned.
 Once the initial changes allow producers to obtain the certification, they
have little incentive to keep on investing in improving efficiency and
working conditions.
 For some companies the goal of fair trade is simply to increase profit. So
they may be using the fair trade acreditations as marketing tools to
differentiate their products or, even worse, to regain reputation lost for
other bad practices.

PROS:
 Producers participating in fair trade schemes in low-income countries
have seen their income increased. According to Fairtrade International
they received  €138 million in Fairtrade premium in 2015.
 An important part of this extra income received by fair trade producers is
invested in education and other activities which promote productivity and
sustainability.
 A minimum wage is granted to farmers and workers of fair trade certified
producers.
  Fair trade schemes have allow small producers to become competitive in
the context of globalization.
 The movement has also supported organic production and offered
emergency assistance to growers.
 Fair trade initiatives are being used to protect the most vulnerable
segments of the population in some areas. For instance, there are specific
programs for child and women's protection. Discrimination is not
allowed.
 Fairtrade has contributed to empowering and giving voice to small
producers who previously had very little bargaining power vis-a-vis
buyers and traders.
 The majority of producers are satisfied with Fairtrade systems.
 Social conditions in many areas with free trade cooperatives have
improved dramatically.

Administration costs don’t go to the suppliers.

Fair Trade costs are partially so high because there are higher administration
costs at the retail level that occur. These additional costs aren’t passed along to
the cooperatives or the workers. They stick around the local community and pad
the financial bottom lines of businesses who are selling the Fair Trade goods.
That means worker exploitation is still occurring, but in a white collar way
instead of a blue collar way.
TESTIFY:
fairly traded goods can cost significantly more; though the difference between a
fair-trade candy bar and an ordinary one is often marginal, fair-trade clothes or
household items can be significantly more expensive than goods traded in the
usual way. Many people, especially those struggling on low incomes, cannot
afford to pay the difference—which is perhaps a bit ironic: if fair trade really is
purporting to help poorer people and make the world more equitable, shouldn't
it be aiming to help poorer consumers as well as poorer producers?

Take "fair trade" coffee. If the price for which ordinary coffee (also called "free
trade" or commodity coffee) is bought and sold is relatively high, it will exceed
the guaranteed fair trade price. Under fair trade rules, that means the coffee
growers are paid almost exactly the free-trade price (with a very small premium
on top)—so they're being paid virtually the same as if they were selling ordinary
commodity coffee in the first place. They don't lose out when prices fall, but nor
do they really gain when prices rise, as you might expect.

So, when commodity coffee prices are high, you, as a consumer, are still paying
a premium in store for your "fair trade" coffee, but it's perfectly possible that the
growers are being paid virtually the same as ordinary coffee growers. Who
benefits? Most likely, the importers, the big grocery stores, the main-street
coffee shops that loudly boast about their "fair trade" coffee to make you feel
good (even though 90 percent of the coffee they sell is probably not fair trade
anyway), and absolutely everyone in the middle of the chain. Who doesn't
benefit? The growers (who earn no more) and you, the consumer (who pay
more to give no more to the growers, but receive a product that is no better in
quality than basic, commodity coffee). This doesn't mean to suggest that "fair
trade" has no value—it's a hugely important step toward recognizing and
correcting the unfairness of trade with developing countries. The point is simply
that there are flaws in the "fair trade" system and we shouldn't be afraid to look
for something better.