A Fair Trade World
Published in the
CIL/USA dialogue (center of international learning)
History shows us that economic trade has been the primary
reason why nations and people cooperate with each other or fight each other.
It further shows us that unfair trade has also been the major reason why
some nations have become rich while others have remained poor.
This wide gap between the wealth of nations became a serious global issue in
tile sixties and continues until today. At he forefront of the issue is the
role that transnational corporations, otherwise known as TNCs, play in
farther widening this gap between the haves and the have nots. It is a
common perception in developing countries where TNCs operate, that they have
been responsible in one way or another in the un-just exploitation of the
natural resources and people of their host countries.
This issue was creating a wedge between the poor Countries and the rich
countries in the democratic world such that a dialogue among these countries
became a necessity. International trade therefore became an important agenda
in succeeding international conferences and summits among nations. Years of'
dialogue and negotiation on this issue led to the Uruguay Round in 1994. The
agreement that is now known as GATT (General Agreement oil Trades and
Tariffs) institutionalizes' the globalization and liberalization of
international trade. It defined the regulations on trade, financial flows,
and intellectual property rights. It also led to the establishment of the
World Trade Organization or WTO that is given the powers to implement the
agreement.
The proponents of the agreement, which were mostly the developed nations,
promised that there are no losers but only winners in this new agreement.
Today, seven years after the Uruguay Round Agreement, the debate oil who the
losers are and who the winners are is still raging. But evidence now shows
that while each nation has equal rights and equal access to the
opportunities created by trade globalization and liberalization, the level
of preparedness ( in terms of technology, capability, infrastructure,
information and capital) of each nation to take advantage of the
opportunities is rather lopsided. Poor countries just simply cannot compete
with the rich developed countries. Their domestic markets are now flooded by
goods coming from the rich industrialized countries while their own finished
products could hardly make it to the international market.
But globalization and trade liberalization are realities that are here to
stay. While tile fight against its ill effects must continue, effective
alternative solutions must also be discovered. The pragmatic option that is
open to the advocates of social justice, human rights, peace and sustainable
development is to help create a level playing field. This can be done Fair
trade means that workers are getting fair prices and receiving adequate
benefits for their labor and goods. In our competitive world market cheap
labor for the production of goods has become common practice. Often
corporations exploit workers in developing nations, paying them insufficient
living wages for what is produced. Because of these practices nations and
their people are forced into cases of extreme poverty and despair. We as
conscious consumers can reform these practices and end the exploitation of
labor at low cost. We can ensure equity and justice in the market place.
Buying fair trade certified goods ensures that both the producers and workers
are getting fair wages that cover the costs of production. For example, one
principal of the fair trade label is that workers are paid a social
'premium' which in turn enables them to improve their living and working
conditions. Secondly, producers receive their payments in advance to avoid
any project start-up debt. Thirdly, producers are given contracts which
ensure long-term practices and sustainability in their work, allowing them
to employ more workers without the threat of early termination. We as
consumers have a choice in purchasing the products we consume. Because we
play such an important role in the market and exchange of goods we must
embrace this choice. As consumers we must understand the role of free trade
and its functions in the global market and how we as individuals can make a
difference. Let's start thinking fair trade.
What Can I do?
We as consumers create the demand in the marketplace. We can begin to buy fair
trade products if we want to begin to make a difference. Try these steps:
Three Easy Steps towards Fair Trade
1. Look up fair trade at your local library or on the internet. - try
www.fairtradefederation.com 2. Understand the fair trade market available to
you. - try www.transfairusa.org
3. Order some Fair Trade coffee on line. - try www.smellthecoffee.com
(*be sure to see a fair trade label)
· -Now, drink your coffee with a sense of pride knowing that you are
supporting a community that needs it!
By Cesar Ledesma
