Workshop 3 Summary...

Is Fairtrade fair? Discuss the case for and against the establishment of Fairtrade initiatives.

Fairtrade generally involves exporting of goods, particularly raw materials from developing countries with a minimum threshold price; which is beneficial for both sides of the trade. Fairtrade has garner much support over the past few decades.

The main aim for Fairtrade is the improvement of social-economics in impoverished countries that rely heavily on agricultural acitivities. There are two main mechanics behind the Fairtrade movement. First being the minimum price which provides a fixed amount of money to producer above the threshold price; helping to ensure a sustainable production. Second, the Fairtrade premium. This amount allows communities to use the money for social-economic improvement which is independent from the minimum price. These two mechanics has provided the fuel in agricultural communities allowing producers to have better lifes.

However, there are problems with Fairtrade movement itself. If left unkept, it will cause oversupply. Producers are paid based on the amount being exported, so the more they produce, the more they earn. Since Fairtrade utilizes a minimum price, the cost paid to producers will not drop even the market is flooded with goods. Next, the tendency for producers to skip certain process to enable faster production cause the drop in quality. It is true that Fairtrade provided guidelines, but the guidelines are not clear to the line, and allows some form of ambiguity and freedom. Thus, this loophole will be taken advantage of.

Fairtrade can be considered as a privileged "club" for the politically inclined, and the term fair can be seen differently from different perspective depending on ones viewpoint and needs.