7. What’s the Difference between Fair Trade & Free (traditional) Trade then? Free Trade Fair Trade Main Goal To increase a nation’s economic growth To empower marginalized people and improve the quality of their lives Focuses On Trade rules (policies) between countries Focuses on trade among individuals and businesses. Primarily Helps Multinational corporations, powerful business interests. Vulnerable farmers, artisans and workers in less industrialized countries. Critics Say Punishing to marginalized people & the environment, sacrifices long-term views. Interferes with the free market, inefficient, too small scale for impact. Major Actions Poorer Countries lower their export taxes, labor and environment standards to create markets with richer countries. Businesses offer producers favorable financing, long-term relationships, minimum prices and higher labor and environmental standards. Producers Payments are Determined By Market and government policies A decent wage that can support producers and their families and community improvement costs Supply chain Includes many organizations between the producers and consumers. Includes fewer parties (middlemen) and is more direct. Key Supporters World Trade Organization, World Bank, International Monetary Fund Fairtrade Labeling Organization, World Fair Trade Organization
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