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Fair Trade vs. Free Trade

Fair trade versus Free trade is an ongoing dispute in today’s society. Between them both which has a more justified point of view? After a brief introduction of both parties and what they stand for, various issues will be exemplified from each point of view. These issues include the international coffee crisis, drastic unemployment in Mexico, and idealistic views on sweatshops.

NAFTA (North American Free Trade Agreement) is the congress in relation with our economy in negotiation with 3rd world countries. The involvement of NAFTA in this dispute is to protect our economy. They do allow free trade but only to a certain degree. After that point also known as a trade barrier, the country importing is penalized with tariffs, on any further importing, in effort to save our economy from loosing wealth. Thus keeping our companies strong and our people employed. On the other hand, various producers in third world countries cannot afford to keep their business. So is NAFTA right? Or is it a mask for the rich to stay rich and the poor to stay poor?

On the opposing side, Fair trade is a group of people with efforts to relieve these tariffs and barriers, so third world countries are more open to major economical growth. One of the largest


Another ongoing battle of Fair trade is their effort to save employment in Mexico. Due to the unjust tariffs placed on their countries broccoli, cauliflower, strawberries and tomatoes, 30 percent of Mexico’s manufacturing jobs will be depleted. A total of 1.6 million people in Mexico will be out of work; this is a mere one third of the jobs lost in the U.S. in the duration of this process.

It also doesn’t help Ms. Blanca that out of the $.50/lb of coffee beans, she only receives approximately $.055/lb (11%), after trade cost, export cost, roasting, transporting, importing, distribution tax, and FT license fees. A top of many other matters, this is one of the problems Fair trade is fighting for. Because of trade agreements created by NAFTA only such coffee titans like Brazil and Vietnam are benefiting in coffee exports. In fact CNN news stated that due to the fall in some coffee exports, Vietnam’s coffee output has nearly doubled in the past 5 years.

The second issue is the drastic unemployment in Mexico. What NAFTA is trying to accomplish in this situation is the safety of U.S. jobs with out totally neglecting Mexico. What Fair trade doesn’t understand is the U.S. produces more broccoli, cauliflower, strawberries and tomatoes than Mexico. Who cares right? Wrong! Not only does the U.S. have more of the commodities, but also; Mexico can afford to sell it in the U.S. for cheaper because they take advantage of their cost of labor charges. In result of this, if NAFTA doesn’t place tariffs on imports from Mexico, all the farms in the U.S. will die out. Through this they’ll find an overall result in a drastic economical downfall for the U.S., as well as an increase in their unemployment line. Why lose out on personal economical growths to benefit someone else?

Finally, one of the bigger and most common battles of Fa

Some topics in this essay:
Mexico Fair, Mexico Due, Trade Agreement, Organizations NGO, Ms Blanca, , Brazil Vietnam, Canada Oxfam, North America’s, Central America, fair trade, world countries, cost living, 3rd world, free trade, third world countries, third world, increase unemployment line, drastic unemployment, unemployment mexico, unemployment line, coffee exports, broccoli cauliflower strawberries, drastic unemployment mexico, cauliflower strawberries tomatoes,

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Approximate Word count = 1241
Approximate Pages = 5 (250 words per page double spaced)


  

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