Fair trade

The fair trade movement, also known as the trade justice movement, promotes international labour, environment and social standards for the production of traded goods and services. The movement focuses in particular on exports from the Third and Second Worlds to the First World. Standards may be voluntarily adhered to by importing firms, or enforced by governments through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the commonly adhered to prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with fairtrade labelling requirements.

Fair trade versus 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.

Related Topics:
ILO - Free trade - Agricultural subsidies

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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.

Related Topics:
Foreign aid - Moral purchasing

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