1. Is Fair Trade Fair?
- What is Fair Trade?
- Positive point of Fair Trade
+ What is Fair Trade minimum price?
+ What is Fair Trade Premium?
- Negative point of Fair Trade

2. What is Fair Trade?
The Definition of Fair Trade given by World
Fair Trade Organization (WFTO) is “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, marginalized producers and workers –
especially in the South

3. • Basically, Fair Trade is about
– A better price,
– Decent working condition, and
– Fair terms of trade for farmers and workers in
developing world
By requiring companies to pay sustainable prices
under the Fair Trade minimum, and Fair Trade
premium.

4. What is Fair Trade minimum price?
• Minimum price is the lowest possible price
that a buyer of Fair Trade products must pay
the producer.
• It’s cover sustainable costs of Production
• It’s guarantees that producers receive a price
which cover the cost of sustainable product

5. Coffee Price from 1989-2005
Blue Line = minimum price
Black Line = market price
http://www.fairtrade.org.uk/

6. What is Fair Trade premium
Premium is the money paid on top of the Fair
Trade minimum price.
Example 1. Market Price = $1, Fair Trade Minimum = $2
Fair Trade Price going to be $2 + premium
Example 2. Market Price = $3
Fair Trade Price going to be $3 + premium
This money will be use to improve to quality of
producer health, education, environment etc.

7. Negative Point about Fair Trade
• Not every producer get help from Fair Trade
– The producer has to meet with Fair Trade
Standards first, to help. It’s not on the basic of
need.
• Sometimes, Fair Trade is use for marketing
ploy to get ethically people to pay for it, but in
the end only 10% of premium paid go to
producer. The other 90% go to retailers.

8. Negative Point about Fair Trade
• Fair Trade set up a fix price for the producer, It
make them uncompetitive producer. In the
long run, it might hold back the economic
development. They may unable to get involve
in world trade’s competition.

9. End
Thanks for your
attention
1. Puvanai Thienpoempool ID: 10024510 (Lead writer)
2. Siddharth Baisoya
3. Rakan