Fair Trade
... government support for free trade and investment agreements, are exacerbating three intractable problems that now plague almost every nation on earth: income inequalities, job losses and environmental damage. Around the world, production, trade, and retailing of most goods and services are increasingly concentrated under the control of a small number of corporations. ... Subsequently, they are the primary beneficiaries of the world’s rapidly growing trade. ... Backed by conventional economists, large corporations have convinced most of the world’s governments that they should maximize global competitiveness through freer trade. Corporate and government officials theorize that free trade will benefit workers. ... Following this theory, new regional trade agreements like the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trades (GATT) are reducing barriers to trade and investment for firms. These free trade agreements offer firms’ global protection for their intellectual property rights but there are currently no equivalent enforceable global standards to protect workers and the environment. ... Even in many countries that are currently experiencing high growth rates from expanded trade, the benefits of growth are not trickling down to the poor. ... The benefits of trade are similarly concentrated among the wealthiest segments of the world’s population and only a handful of developing countries. ... Free trade agreements do little to enhance the trading positions and commodity prices of these poor countries. ... Fair Trade organizations offer a crucial alternative by paying farmers a price that always covers at least production costs. ... How It Will Impact Fair Trade supporters believe that if their system of trade, which is based on respect for workers’ rights and the environment, is adopted by the big players in the global economy, it can play a big part in reversing the growing inequities and environmental degradation that have accompanied the growth in world trade. For Fair Trade organizations, the choice is simple. Whether trade is good for producers and consumers depends on how the goods are made and how they are sold. The business generated by Fair Trade organizations in Europe and the U. ... 01% of all global trade, which is a small percentage, the fair trade movement is setting standards that could redefine world trade.