Free Trade Versus Fair Trade

Is Free Trade desirable? Does it primarily benefit the wealthy? And what are its impacts on individual autonomy and human dignity? These are some of the fundamental questions that acclaimed trade law expert, Michael Trebilcock, sets out to answer in this pithy and insightful journey through the past, present and future of international trade agreements and trade policy.

Seminar paper from the year 2003 in the subject Didactics for the subject English - Discussion and Essays, grade: 2 (B), University of Linz (Technical Language), course: Text Production 2 English, language: English, abstract: The mercantilist idea was already represented by the rulers of the 18th century and is still gaining more and more popularity in our times. With the signing of the first free-trade treaty in 1860 between the UK and France (Mègrelis, 1978, p.15) these two countries set the starting point for tendencies towards barriers surrounding the industrialized nations. The broad hypothesis underpinning this article is “ Most of the problems concerning free trade only exist due to the fact, that protectionist barriers set up by Northern countries still disturb an actual free trade system.” Basically free trade has to lead to international division of labour and therefore to interdependence between countries. According Kohlehammer (1993), a defender of the free trade concept, “national customers can gain from it by choosing the cheapest products from all over the world” (p.45). According to this view the foreign supplier can increase in turnover and is able to expand the production. Due to the fact that foreign producers use a part of their proceeds on imports from their customers' countries, they also promote the domestic economy. Exports should be supported as they mean more jobs to the exporting country. What happens is that all countries try to follow the same idea of reducing their imports and maximising their exports. Blanchard (1997) describes that a too high number of imports from foreign countries endangers domestic jobs and is therefore controlled through customs duties and other trade barriers. (pp.243-245) If customers could decide between domestic and imported products, some domestic suppliers would not be competitive anymore and would not be able to sell their products, because they either are too expensive or of low-quality. They would only be able to survive, if they lowered their costs of production with no consideration for social and economical losses.

In Recent Years, Strange Sounding Acronyms Gatt, Nafta, And So On-Have Filled The Newspapers And Airwaves. While These Terms Have Never Really Been Explained To The Indian Public, We Have Repeatedly Been Told, Don T Worry, It Ll Be Good For You & In This Book The Author Give Voice To Those Of Us Who Sense That Something Rings Hollow In The Cries For Free From What? The Author Wrestles These Questions To The Ground& And Offers Us A Bold And Courageous (And Possible) Alternative.. (This Book Is) A Blaring Wake-Up Call. With The Demise Of Communism, Free Trade Ideology Has Become Triumphant, And Its Proponents Now Seek Basic Changes In The World S Economy. Very Expansion Has Brought Out Many Of The Fundamental Problems With Free Trade. In A Sweeping And Clear Argument, The Book Challenges The Orthodox View That Free Trade Benefits Everyone And That Trade Organization Such As Nafta And Gatt Will Create A New Global Prosperity.The Author Argues That, On The Contrary, Free Trade Serves Only A Narrow Range Of Established Interests, And That To Protect International Equity And The Global Environment, Trade Must Be Put On A Different Footing A New Protectionism To Regulate External Trade While Protecting And Promoting Local Interests.This New Protectionism, Claims The Author, Presents A Viable Alternative To The Status Quo, And Would Contribute More To Prosperity And Social Justice Than Would Continued Trade Liberalization, As The Nafta And Gatt Treaties Propose. New Policies Are Also Needed To Toughen Environmental Protection Measures And Create Much Needed Local Jobs, The Areas Now Most Endangered By Unfettered Free Trade.The Book Analyzes The Powers Behind The Free Trade Argument The Transnational Corporation Emerging Superblocs To Present An Important And Radical Outline Of What A Viable, More Just Future Could Be For A World Facing Huge Economic And Environmental Problems In The Twenty-First Century.

Framed within the common goal of advancing trade justice and South-North solidarity, The Fair Trade Handbook presents a broad interpretation of fair trade and a wide-ranging dialogue between different viewpoints. Canadian researchers in particular have advanced a transformative vision of fair trade, rooted in the cooperative movement and arguing for a more central role for Southern farmers and workers. Contributors to this book look at the issues within global trade, and assess fair trade and how to make it more effective against the broader structures of the capitalist, colonialist, racist and patriarchal global economy. The debates and discussions are set within a critical development studies and critical political economy framework. However, this book will appeal to a wide range of readers, as it translates the key issues for a popular audience. Includes : A Lively Bean that Brightens Lives: A Graphic Story by Bill Barrett and Curt Shoultz