World Trade : Fair or Foul?

The Issue of Fair Trade

by one of our team


Gone are the days when you would swap a sheaf of wheat with your neighbour for a chicken.

These days, trade - the buying and selling of goods or services - is the $multi-million playground of international commerce.

Traditionally, trade has been controlled by restrictions, such as taxes, quotas and bans, aimed at protecting domestic markets.

Modern economists have argued that protectionism blocks international trade and over the past 50 years many countries have opened their markets to foreign trade and investment.

The theory is that, as business booms, national income increases and everyone benefits. But what has transpired is free trade, not fair, the main winners being rich countries, large companies and the already wealthy.

Trade liberalisation encourages rich countries to consume more and poor countries to export more, often destroying irreplaceable natural resources. Over-fishing means half of the worlds ocean fisheries are near depletion, while 56 million hectares of global forest disappeared during the last decade alone.

The worlds largest companies are increasingly able to relocate their factories to countries with cheaper labour and fewer anti-pollution laws, while smaller businesses and farms simply cant compete and are going to the wall.

Shockingly, 1.3 billion people currently survive on less than one dollar a day, while basic needs in many poorer countries, such as education and healthcare, are still not being met.

Trade is governed by a set of rules overseen by the World Trade Organisation, comprising 130-plus of the worlds largest Governments.

A number of Governments had planned to use the WTOs 1999 meeting in Seattle to launch a new round of trade liberalisation covering many new areas, including foreign investment and Government procurement. However, because of unprecedented public opposition, the negotiations collapsed.

Fair trade campaigners are calling for strong and binding rules governing the activities of corporations. They want the World Trade Organisation to be more democratic and transparent, embracing people currently excluded from the global economy, such as women, children and indigenous people.

They want food and water excluded from trade rules, and the WTOs power to override laws designed to protect local communities and the enviroment removed.

As Druids, we can participate in fair trade by keeping ourselves well-informed. Pressure groups such as Friends of the Earth (http://www.foe.co.uk), Christian Aid and CAFOD: Catholic Fund for Overseas Development, have on-going peaceful campaigns aimed at fair trade.

We can reduce the impact of consumption on the Third World, by buying locally produced and organic produce, fair trade products and increasing our efforts to reduce, reuse and recycle.

Finally, we can write to our MP demanding a full and independent assessment of the trade system, or ask our local supermarket to increase its range of fair trade products.

Free trade is now seen as a runaway train, with dire consequences for the planet and her people. It topped $7 trillion in 1998, a far cry from a sheaf of wheat and a chicken!

Fair Trade's website is at : http://www.fairtrade.org.uk
Find your MP (and email) at : http://www.locata.co.uk/commons