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Free Trade is a policy followed by North America and the other countries in the World Trade Organization. The policy allows for open trading routes between all member countries. The agreements often remove any sorts of taxes or tariffs in place and make it much easier to freely trade products. The problem with free trade comes from the amount of power that large corporations gain from it.
With trading being allowed by highly developed countries and smaller less developed ones, it makes it harder for the small countries to compete in the market place. Large corporations can basically control the market and set the prices for the farmers or manufactures goods. This causes loss of jobs, and overall loss of profits for the less developed countries. They may even end up spending more money to grow crops, then what they eventually sell them for. This essentially renders their work useless. With all of the connections a large corporation has, they can essentially set their own prices by driving down the market. If they really want to destroy a market in a country they do what is called dumping. Mexico may be one of the most devastated countries to experience dumping, after the enactment of the North American Free Trade Agreement. The dumping of corn, that was cheaper then what it cost Mexican farmers to grow, essentially destroyed the market. It is estimated that the dumping cost Mexican corn farmers one billion dollars a year in between the period of 1995 to 2005.
Free trade and fair trade might sound the same, but they are very different. Fair trade is a policy that protects the farmers and manufactures who make the goods. It ensures that the goods they produce hold their value, and they will not be sold for less then what they cost to make or grow. The fair trade movement wants to make life better for some of the farmers in less developed countries. Working with free trade buyers here in North America and in other countries, they get a fair price that allows them to make a profit.
A lot of people are confused about fair trade and think it may be some sort of charity. It doesnt involve any type of charity; its just about treating the people who work hard to produce the goods more fairly. It also seeks to improve some of the conditions on the farms they work on, eliminating some of the harsh working conditions. There have been some strides made in the movement in recent years, some large chain retailers are now carrying fair trade certified products. One of the biggest accomplishments of the movement was getting Wal-Mart and McDonalds to sell certain fair trade products, coffee being one of the first. Hopefully, the movement keeps gaining momentum and takes off in other countries as well. Every worker who grows this nations food deserves to live just as comfortable as us, its only right. October is Fair Trade Month! What could be a better time than now to pledge to buy Fair Trade goods?
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