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Fair trade versus free trade

Posted on:2/2/2006
In the past, suggestions that "unfair" goods be taxed, or that standards such as those from the ILO, be required in order for countries to participate in international trade, have led to heavy criticism by advocates of free trade.


In the past, suggestions that "unfair" goods be taxed, or that standards such as those from the ILO, be required in order for countries to participate in international trade, have led to heavy criticism by advocates of free trade. Although many organisations and individuals involved in fair trade campaigns are still uneasy about unfettered free trade, they are more cautious about arguing for protectionism or coordinated international intervention. Today the emphasis is on the lack of free trade caused by the protectionism (including agricultural subsidies) of the developed world. Without such rich-country protectionism, it is argued poor countries might stand a chance of seriously alleviating poverty.

 

Some Italian consumer organisations proposed in the 1980s that goods that were imported to Italy should be taxed inversely proportionately to the degree to which social and ecological standards of the exporter matched those of Italy - in other words, lower standards meant a higher offsetting tariff. The money so collected would presumably be spent on foreign aid to bring the exporting nation up to Italian standards - thus, all purchasing in Italy would become moral purchasing within the Italian ethical tradition.


  
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