Mae DesTroismaisons
April 15, 2015
ENVS 204
Hudspeth
As I write this, a free trade agreement called the Trans-Pacific Partnership (TPP) is being considered, and legislation that would “Fast Track” or speed the progress of the TPP is expected to pass through Congress this week. According to the Office of the United States Trade Representative, the TPP is “a 21st century trade agreement that will boost U.S. economic growth” and “unlock opportunity for Americans through trade with the Asia Pacific” (ustr.gov/tpp). There has been widespread criticism of the transparency (or lack thereof) regarding the contents of this agreement and the negotiation of it among select government bureaucrats and the 11 other countries involved. Various social and environmental organizations oppose the Fast Track, including the Sierra Club, Corporate Accountability International, 350.org, and the Institute for Agriculture and Trade Policy, to name just a few. Their reasons for opposing the fast track for the TPP involve concerns about environmental degradation, increased corporate power, food sovereignty, workers’ rights, and more (stopfasttrack.com).
According to an article called “The Trans-Pacific Partnership: an Assault on Workers” that appeared on the cover of a recent issue of Peace & Justice News, “The real concern comes with the knowledge that over 600 corporate officials have been given access to the document, yet it remains hidden from the public and the majority of Congress.” The author continues, stating, “[The agreement] would protect corporate interests. These include allowing corporations to avoid domestic laws, accessing land without government oversight, extending copyrights on brand name medicines, banning Buy America and Buy Local preferences that invest in the US economy, and restricting internet freedom” (Boochever 1).
The Trans-Pacific Partnership is not the focus of this essay, but it sets the stage for a conversation about the differences between free trade and fair trade. The term “free trade” sounds benign; when people hear it, they are unlikely to picture “mega-development projects and extractive industries [that] spell a death sentence for ecosystems and land-based communities” (Beehive Collective). But in order for global moves to be made in the way of social and environmental justice, it is important for today’s (largely American) consumers to recognize the distinction between free trade and fair trade in terms of social and environmental sustainability.
What is Free Trade?
Today, I asked a few friends of mine to tell me what free trade is without looking it up. Responses ranged from vague statements like, “Its when people trade what they have to get what they need” and “open trade between areas” to specific ones such as, “political lingo referring to international trade without protective regulations such as tariffs, import quotas, etc.” (DesTroismaisons). According to Wikipedia, free trade is “a policy in international markets in which governments do not restrict imports or exports.” The United States Department of Commerce International Trade Administration states:
“Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Trade Agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets” (“Free Trade Agreements”).
In his article, “Free Trade Vs. Fair Trade,” Jason Gillikin of Demand Media wrote, “Free traders believe that a business should succeed or fail based on its ability to respond to the free and open market, without needing special governmental protections to protect the industry or its workers.”
All of the above definitions are correct, but organizations like the Peace and Justice Center (PJC) and the Beehive Collective point out some not-so-nice implications of free trade. For example, some of the so-called “barriers” broken down by trade pacts such as the North American Free Trade Agreement (NAFTA) include environmental and labor rights (Beehive Collective). Alissa Boochever concurs, noting in her aforementioned Peace & Justice News article that the “free trade agenda” consists of “lowering tariffs, quotas, labor principles, and environmental standards in order to loosely trade between nations without constraint” (1).
Free trade, largely advocated for and enforced by the World Trade Organization, is supposed to help open international markets, but at what cost? The negative repercussions of free trade include environmental degradation due to increased pesticide and energy use on corporate farms, low wages for workers abroad, adverse working conditions (such as in sweatshops), and sometimes abusive labor, forced labor, and child labor (Chmielewski).
What is Fair Trade?
After asking some of my friends what they thought “free trade” meant, I then asked them to define fair trade, and to explain how (if at all) it is different from free trade, again, without looking it up. Some folks admitted they had no idea, but others had impressive responses such as, “Fair trade is when all parties involved receive a fair deal. In most modern transactions, the seller is at risk of not receiving fair compensation, so fair trade usually differs from free trade in that the seller would receive the amount of money they deserve, not the lowest amount of money that the buyer can give them” and “Free trade is the opening of all potential markets to trade from other nations. Fair trade is the insurance that the members that participate in the trade are not taken advantage of” (DesTroismaisons).” Jason Gillikin continued in the previously mentioned “Free Trade Vs. Fair Trade” article:
“Fair trade advocates focus on the wages and working conditions of labor in developing markets. For example, a fair trade activist will fight to increase the wage rates of workers and improve their working conditions, especially when a large multinational corporation chooses to pay pennies per hour for labor in one country instead of dozens of dollars per hour elsewhere. Fair traders suggest that companies and governments should regulate trade to ensure that workers receive a just level of compensation and a safe working environment. ‘Fair trade’ as a term is sometimes used to refer specifically to policies that provide a living wage to farmers for their crops, usually above market prices, because local and small-hold farmers often cannot compete on price with large-scale factory farms.”
Typing in the Google command, “define: fair trade” results in the following definition: “trade in which fair prices are paid to producers in developing countries”. Fair Trade USA claims, “products that bear our logo come from farmers and workers who are justly compensated” (“What Is Fair Trade?”).
In their Peace & Justice News article, “Fair Trade Split,” Taylor Dorn criticized Fair Trade USA (FTUSA), which broke away from Fairtrade Labeling Organization in 2011, for its new certification standards that let large corporate[1] plantations—ones that certainly do not need the financial endorsement from FTUSA and a fair trade label to compete in the global market—in on the fair trade niche market. New and looser FTUSA standards will “favor the buyers and corporations at the expense of the small scale producers. As a result, the measure of this system’s success is no longer based on the welfare of the producers, but instead is measured by the sale of their products” (9). Since larger plantations that mass-produce cash crops for multinational corporations can pay Fair Trade USA more money in licensing fees, FTSA is “fiscally encouraged” to take them aboard (9). Dorn quoted the World Fair Trade Organization’s following statement in regards to the new FTSA standards: “This action seems more to satisfy and enrich the very people whose actions caused fair trade to be established in the first place” (9). Indeed, in the words of Dorn, “FTUSA’s new standards benefit themselves and big corporations at the expense of small independent co-ops while hiding behind the title of ‘fair trade’” (9).
[1] Dorn noted, “FTUSA is working with Starbucks, Wal-Mart, Coca-Cola, and other hegemonic superpowers in order to promote their ‘fair trade products’” (9).
Fair Trade and Sustainability
In order to move toward global social and environmental sustainability, we need to support and promote trade that is actually fair. To help do this, consumers must value “economic opportunity for marginalized laborers instead of profits for multinational corporations” which free trade agreements like NAFTA and the TPP evidently do not (Boochever 9). More importantly, those who are able to must vote with their dollars by giving preference to small and/or local producers whenever possible. The Peace and Justice Center’s website succinctly lists what fair trade is and who/what it helps sustain:
April 15, 2015
ENVS 204
Hudspeth
As I write this, a free trade agreement called the Trans-Pacific Partnership (TPP) is being considered, and legislation that would “Fast Track” or speed the progress of the TPP is expected to pass through Congress this week. According to the Office of the United States Trade Representative, the TPP is “a 21st century trade agreement that will boost U.S. economic growth” and “unlock opportunity for Americans through trade with the Asia Pacific” (ustr.gov/tpp). There has been widespread criticism of the transparency (or lack thereof) regarding the contents of this agreement and the negotiation of it among select government bureaucrats and the 11 other countries involved. Various social and environmental organizations oppose the Fast Track, including the Sierra Club, Corporate Accountability International, 350.org, and the Institute for Agriculture and Trade Policy, to name just a few. Their reasons for opposing the fast track for the TPP involve concerns about environmental degradation, increased corporate power, food sovereignty, workers’ rights, and more (stopfasttrack.com).
According to an article called “The Trans-Pacific Partnership: an Assault on Workers” that appeared on the cover of a recent issue of Peace & Justice News, “The real concern comes with the knowledge that over 600 corporate officials have been given access to the document, yet it remains hidden from the public and the majority of Congress.” The author continues, stating, “[The agreement] would protect corporate interests. These include allowing corporations to avoid domestic laws, accessing land without government oversight, extending copyrights on brand name medicines, banning Buy America and Buy Local preferences that invest in the US economy, and restricting internet freedom” (Boochever 1).
The Trans-Pacific Partnership is not the focus of this essay, but it sets the stage for a conversation about the differences between free trade and fair trade. The term “free trade” sounds benign; when people hear it, they are unlikely to picture “mega-development projects and extractive industries [that] spell a death sentence for ecosystems and land-based communities” (Beehive Collective). But in order for global moves to be made in the way of social and environmental justice, it is important for today’s (largely American) consumers to recognize the distinction between free trade and fair trade in terms of social and environmental sustainability.
What is Free Trade?
Today, I asked a few friends of mine to tell me what free trade is without looking it up. Responses ranged from vague statements like, “Its when people trade what they have to get what they need” and “open trade between areas” to specific ones such as, “political lingo referring to international trade without protective regulations such as tariffs, import quotas, etc.” (DesTroismaisons). According to Wikipedia, free trade is “a policy in international markets in which governments do not restrict imports or exports.” The United States Department of Commerce International Trade Administration states:
“Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets to U.S. exporters. Trade Agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets” (“Free Trade Agreements”).
In his article, “Free Trade Vs. Fair Trade,” Jason Gillikin of Demand Media wrote, “Free traders believe that a business should succeed or fail based on its ability to respond to the free and open market, without needing special governmental protections to protect the industry or its workers.”
All of the above definitions are correct, but organizations like the Peace and Justice Center (PJC) and the Beehive Collective point out some not-so-nice implications of free trade. For example, some of the so-called “barriers” broken down by trade pacts such as the North American Free Trade Agreement (NAFTA) include environmental and labor rights (Beehive Collective). Alissa Boochever concurs, noting in her aforementioned Peace & Justice News article that the “free trade agenda” consists of “lowering tariffs, quotas, labor principles, and environmental standards in order to loosely trade between nations without constraint” (1).
Free trade, largely advocated for and enforced by the World Trade Organization, is supposed to help open international markets, but at what cost? The negative repercussions of free trade include environmental degradation due to increased pesticide and energy use on corporate farms, low wages for workers abroad, adverse working conditions (such as in sweatshops), and sometimes abusive labor, forced labor, and child labor (Chmielewski).
What is Fair Trade?
After asking some of my friends what they thought “free trade” meant, I then asked them to define fair trade, and to explain how (if at all) it is different from free trade, again, without looking it up. Some folks admitted they had no idea, but others had impressive responses such as, “Fair trade is when all parties involved receive a fair deal. In most modern transactions, the seller is at risk of not receiving fair compensation, so fair trade usually differs from free trade in that the seller would receive the amount of money they deserve, not the lowest amount of money that the buyer can give them” and “Free trade is the opening of all potential markets to trade from other nations. Fair trade is the insurance that the members that participate in the trade are not taken advantage of” (DesTroismaisons).” Jason Gillikin continued in the previously mentioned “Free Trade Vs. Fair Trade” article:
“Fair trade advocates focus on the wages and working conditions of labor in developing markets. For example, a fair trade activist will fight to increase the wage rates of workers and improve their working conditions, especially when a large multinational corporation chooses to pay pennies per hour for labor in one country instead of dozens of dollars per hour elsewhere. Fair traders suggest that companies and governments should regulate trade to ensure that workers receive a just level of compensation and a safe working environment. ‘Fair trade’ as a term is sometimes used to refer specifically to policies that provide a living wage to farmers for their crops, usually above market prices, because local and small-hold farmers often cannot compete on price with large-scale factory farms.”
Typing in the Google command, “define: fair trade” results in the following definition: “trade in which fair prices are paid to producers in developing countries”. Fair Trade USA claims, “products that bear our logo come from farmers and workers who are justly compensated” (“What Is Fair Trade?”).
In their Peace & Justice News article, “Fair Trade Split,” Taylor Dorn criticized Fair Trade USA (FTUSA), which broke away from Fairtrade Labeling Organization in 2011, for its new certification standards that let large corporate[1] plantations—ones that certainly do not need the financial endorsement from FTUSA and a fair trade label to compete in the global market—in on the fair trade niche market. New and looser FTUSA standards will “favor the buyers and corporations at the expense of the small scale producers. As a result, the measure of this system’s success is no longer based on the welfare of the producers, but instead is measured by the sale of their products” (9). Since larger plantations that mass-produce cash crops for multinational corporations can pay Fair Trade USA more money in licensing fees, FTSA is “fiscally encouraged” to take them aboard (9). Dorn quoted the World Fair Trade Organization’s following statement in regards to the new FTSA standards: “This action seems more to satisfy and enrich the very people whose actions caused fair trade to be established in the first place” (9). Indeed, in the words of Dorn, “FTUSA’s new standards benefit themselves and big corporations at the expense of small independent co-ops while hiding behind the title of ‘fair trade’” (9).
[1] Dorn noted, “FTUSA is working with Starbucks, Wal-Mart, Coca-Cola, and other hegemonic superpowers in order to promote their ‘fair trade products’” (9).
Fair Trade and Sustainability
In order to move toward global social and environmental sustainability, we need to support and promote trade that is actually fair. To help do this, consumers must value “economic opportunity for marginalized laborers instead of profits for multinational corporations” which free trade agreements like NAFTA and the TPP evidently do not (Boochever 9). More importantly, those who are able to must vote with their dollars by giving preference to small and/or local producers whenever possible. The Peace and Justice Center’s website succinctly lists what fair trade is and who/what it helps sustain:
Works Cited
Beehive Collective. “Plan Mesoamerica.” University of Vermont. Angell Lecture Hall. Burlington. 2014. Poster presentation.
Boochever, Alissa. "The Trans-Pacific Partnership: An Assault on Workers." Peace & Justice News 1 July 2014: 1, 3. Print.
Chmielewski, Tom. "Negative Effects of Free Trade." Small Business. Web. 17 Apr. 2015. <http://smallbusiness.chron.com/negative-effects-trade-5221.html>.
DesTroismaisons, Mae. “Help me with my paper”. Facebook. [17 Apr. 2015.
<https://www.facebook.com/mae.destroismaisons/posts/909417295789468?pnref=story>]
Dorn, Taylor. "Fair Trade Split." Peace & Justice News 2013: 9. Print.
"Free Trade Agreements." Free Trade Agreements. United States of America Department of Commerce. Web. 17 Apr. 2015. <http://trade.gov/fta/>.
"Fair Trade USA." What Is Fair Trade? Web. 17 Apr. 2015. <http://fairtradeusa.org/what-is-fair-trade>.
"Free Trade." Wikipedia. Wikimedia Foundation. Web. 17 Apr. 2015. <http://en.wikipedia.org/wiki/Free_trade>.
Gillikin, Jason. "Free Trade Vs. Fair Trade." Small Business. Web. 17 Apr. 2015. <http://smallbusiness.chron.com/trade-vs-fair-trade-1683.html>.
"Stop This Secret Trade Agreement That Would Censor the Internet." Stop Fast Track! Stop the TPP! Web. 18 Apr. 2015. <https://www.stopfasttrack.com>.
"Trans-Pacific Partnership (TPP)." Office of the United States Trade Representative. Web. 17 Apr. 2015. <https://ustr.gov/tpp>.
"What Is Fair Trade?" Peace & Justice Center. The Peace and Justice Center. Web. 17 Apr. 2015. <http://www.pjcvt.org/what-we-do/fair-trade/what-is-fair-trade/>.
Beehive Collective. “Plan Mesoamerica.” University of Vermont. Angell Lecture Hall. Burlington. 2014. Poster presentation.
Boochever, Alissa. "The Trans-Pacific Partnership: An Assault on Workers." Peace & Justice News 1 July 2014: 1, 3. Print.
Chmielewski, Tom. "Negative Effects of Free Trade." Small Business. Web. 17 Apr. 2015. <http://smallbusiness.chron.com/negative-effects-trade-5221.html>.
DesTroismaisons, Mae. “Help me with my paper”. Facebook. [17 Apr. 2015.
<https://www.facebook.com/mae.destroismaisons/posts/909417295789468?pnref=story>]
Dorn, Taylor. "Fair Trade Split." Peace & Justice News 2013: 9. Print.
"Free Trade Agreements." Free Trade Agreements. United States of America Department of Commerce. Web. 17 Apr. 2015. <http://trade.gov/fta/>.
"Fair Trade USA." What Is Fair Trade? Web. 17 Apr. 2015. <http://fairtradeusa.org/what-is-fair-trade>.
"Free Trade." Wikipedia. Wikimedia Foundation. Web. 17 Apr. 2015. <http://en.wikipedia.org/wiki/Free_trade>.
Gillikin, Jason. "Free Trade Vs. Fair Trade." Small Business. Web. 17 Apr. 2015. <http://smallbusiness.chron.com/trade-vs-fair-trade-1683.html>.
"Stop This Secret Trade Agreement That Would Censor the Internet." Stop Fast Track! Stop the TPP! Web. 18 Apr. 2015. <https://www.stopfasttrack.com>.
"Trans-Pacific Partnership (TPP)." Office of the United States Trade Representative. Web. 17 Apr. 2015. <https://ustr.gov/tpp>.
"What Is Fair Trade?" Peace & Justice Center. The Peace and Justice Center. Web. 17 Apr. 2015. <http://www.pjcvt.org/what-we-do/fair-trade/what-is-fair-trade/>.