The words free and fair are frequently used together, like neat and tidy or pots and pans. The last slide of Prof Amir’s presentation however proves otherwise- Free trade and fair trade do not go hand in hand. And all these while, I have always clung on to the idea that both terms are similar.
It is hard to believe that even with the World Trade Organization dealing with rules of trade between nations, the two are unable to coexist. In fact, they are different sides of a same coin. Free trade is often associated with big businesses, the opening of new markets and securing better returns for more exports in rich countries. On the other hand, fair trade is seen as looking after individuals who are involve in the production process especially in poor countries.
This commercial below highlights the social impact of free trade on today’s society. It brings out the point Prof made in his lecture slide on “what’s wrong with free trade”:
Looking at this commercial on YOUTUBE, it is hard to believe that while trade is taking place in our every day life –between buyers and sellers, workers in the production line are often exploited. While we as consumers can afford to choose from a large variety of coffees available in the market, workers struggle with their mundane and low-paying jobs. Such is the effect of unfair trade practices which places too much emphasis on the benefits gained by consumers but ignores the bitter conditions workers have to endure to produce the commodities.
I remember when I was working at Coffee Club several months ago, a lady whom I was serving asked if the coffees we serve are from dealers who engages in fair trade. I nodded without hesitating, thinking that it would be impossible for people to engage in such unfair activities. Evidently, my thoughts exposed my naivety. I was clearly unaware of the social condition worldwide and oblivious to the fact that out of an average 6 dollars for a cup of coffee at Coffee Club, farmers of coffee beans might only receive a few cents while big organizations are reaping huge lumps of profits. I’m not saying that Coffee Club does engage in such practices but the advertisement actually got me thinking about it.
Even though unfair trade practices are still happening worldwide, non-profitable organizations are eager to solve this growing problem. A few days ago, I chanced upon (http://www.fairtrade.org.uk/) while I was looking for information for this blog entry. It is comforting to know that solutions are implemented to reduce the exploitation of workers even though efforts might be and often are limited.
To prevent this problem from wide spreading, I believe other solution ought to be put into practice. For a start, a new world trade system needs to be built which is based on the principle of fair trade instead of free trade. To end extreme poverty, then we need to open up the markets of rich countries, while allowing poor countries to protect and subsidise theirs.
