Fair Trade

As I am a student of International Commercial Law, I have an interest about international trade. I found one topic is interesting is “Fair Trade”. As, it was my workshop and I was the lead writer on that workshop, I studied a bit further. I found one most interesting thing, In the name of fair trade the western countries getting benefit. They use cheap labour from the most developing countries. The main purpose of the fair trade is to remove the poverty and the aim is to give the wages depending upon the economic condition of the particular country. It is evident that most of the developing country’s living expenses is lower than any developed country. My issue is that as the importing country getting the same quality product from the developing country for less money they are benefitted. But the developing country are always left behind because the poor worker are getting the contemporary wages according to their social economic condition of their country, though the unemployment problem is solving.

If the develop country pay a little more to the worker of the developing country then may be poverty can be removed a bit faster.

Child Labour

There are many middle east countries like Saudi Arabia, United Arab Emirates, for camel racing they use children as camel jockeys. It was happened because of child trafficking. Those middle east countries used to bring those children from third world countries for low prices. The race is so dangerous and most of the time the child, who was used as a camel jockey, was died.

But now the situations had been changed. The United Arab Emirates banned on the use of underage camel jockey. The other countries like Saudi Arabia, Jordan Kuwait, Qatar, Bahrain, Yemen, Lebanon and Egypt also agreed with the banning of underage camel jockey. Moreover there are many issue to write about child labour, but I think this issue need to be noticed once again.   

One country can earn foreign currency and national trade can be improved by  implementing cost, insurance and freight (CIF) contract on  export and free on board contract (FOB).import. Also the country can  increase its export turnover and reduce its import turnover, thereby improving its international trade balance.

Moreover there is another issue is that about the third party, who is the shipper. If any the goods damaged by the stevedores during loading the goods on ship, then who will take the responsibility. Is the responsibility goes to the carrier company for the mistake of their employee? If it is CIF contract, then once the goods cross the ship rails then the damages will go to the buyer. But later on buyer can claim damages to the insurance company. I think, this is the most complicated area of CIF contract, because here the third party carrier company is related, insurance company is related as well as the seller can be face damages, if he could not get the goods delivered on due time.

Sorry folks there wee some typing mistake in my previous article.

CIF and FOB contract

One country may  foreign currency can be saved and  national trade can be improved by  implementing cost, insurance and freight (CIF) contract on  export and free on board contract (FOB).import. Also the  country will increase its export turnover and reduce its import turnover, thereby improving its international trade balance.

Moreover there is another issue is that about the third party, who is the shipper. If any thing happened wrong or damaged during the loading the goods, then who will take the responsibility.

Fair Trade

Summary of Fairtrade workshop 3 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.

Wednesday, 10/20/2010 5:33 PM by Arifur Khan    

|