Fair Trade vs. Free Trade

I recent wrote an article for Relevant Magazine concerning Fair Trade. It’s evoked a bit of discussion and a little debate. I also posted on my other blog, about the article and about looking for fair trade garments. Something happened that immediately struck me (and I’ve done this before too): People commented using the word “Free” instead of “Fair” when talking about trade. There is a big difference and though some of us are aware of it, we tended to confuse the two. So allow me to indulge in an explanation and attempt to address some of the comments made on my article.

Free trade quite simply is an attempt to take away any barriers to a free flowing economic system. If you’ve taken Micro-Economics (and if you haven’t you should, it’s absolutely fascinating), you’ve learned a bit about supply and demand, opportunity cost, and more. More specifically in Economics you learn about all these things in an ideal and mathematical world. What struck me, besides brief mentions of externalities, is that Economics doesn’t really take into consideration human rights or needs. If the way the economics play out dictates that a child will work for 20 cents an hour sewing the elastic band onto your underwear, then that’s the way it should be. The idea is that in the long run, everything will pan out better for everyone. Let me be the first to say, that I don’t necessarily think that they are wrong or that those ideas won’t work. What you’ll find is I just have some difficulty with what it means for me specifically.

Quite briefly, and I’m sure we’ll get into this more later, I find the idea of trade being “fair” especially settling to my conscience. I work with youth and the question I constantly ask is, “is that fair?” There are plenty of times I agree with them that society, school, the “system” or some authority isn’t “fair.” And it gives me the opportunity to engage in dialog about class or punishments, etc by asking them if what I decide or ask of them is “fair.” So when it comes to the food I eat, the clothes I wear, and the coffee my wife drinks, I’d like it to be fair. Fair to myself, and fair to others. So what does fair mean?

(unfortunately this is where I have to go to work, so you’ll have tune in later).

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