Whats the difference between “Fair Trade” and “Free Trade”?
Fair Trade guarantees producers a better price for their product than what they would earn under conventional trade. By providing direct trade links between consumers and producers, Fair Trade companies promote social justice in a manner that socially and economically empowers farmers. Fair Trade is not charity; it provides a market-based approach to increasing small farmer self-sufficiency. Free Trade, in contrast, implies a system of trade that favors large multinational corporations, often at the expense of local human communities and the environment. Free trade is not about helping small farmers gain self sufficiency; its a system of trade that increases corporate profits for multinational companies that benefit from lower labor costs and looser environmental regulations in Third World countries.
