Summary of Workshop-3 (Fair Trade)

The notion of fair trade was shaped in the year following Second World War. Fair trade is a financial relationship between producers, sellers, and consumers based on the principle of equity within the exchange of goods. Equity is achieved via creating a platform for trade that is transparent and therefore accountable for the just treatment of all producers.  The fair trade is mainly based on the nine following principles: 1.   Create Opportunities for Economically and Socially Marginalized Producers. 2.   Develop Transparent and Accountable Relationships. 3.   Build Capacity. 4.   Promote Fair Trade. 5.   Pay Promptly and Fairly. 6.   Support Safe and Empowering Working Conditions. 7.   Ensure the Rights of Children. 8.   Cultivate Environmental Stewardship. 9.   Respect Cultural Identity. MERITS The purpose of fair trade is to give the best price to the producer and the consumers. In this way fair trade helps to enable the producers of the developing country to trade straight to the western country as a result the functions of middle man has been removed from the transaction. DEMERITS However, there are some fair trade organisations that help the producers of developing countries to put extra pressure on the big company for anti competitive practice. On the other hand, there are some western companies who use the developing countries work force but give the low labour cost which does not reflect the fair trade.   Finally the producers, who supply the quality products in reasonable price, will survive in the market. This is true in the present world market. It should be remembered that, the grass root producers of the developing countries should be given more opportunities to trade in the developed countries. Thus, the poverty of the developing countries can be removed by fairtrade. And that’s why the notion of fair trade came into play.                                                             By                                         ARIFUR, MD. RAHAT, FALGUNI.