Fair
Trade versus Free Trade
Fair Trade
MARCH 2003
Fair trade puts humans and the environment at the
center of trading relationships, while free trade focuses
on maximizing corporate flexibility.
There are many agreements that have developed over the past
10 years, including the North American Free Trade Agreement
(NAFTA), the Free Trade Area of the Americas (FTAA), and the
General Agreements on Tariffs and Trade (GATT).
Because free trade agreements like NAFTA include few, if any,
provisions for labor and environmental protections, free trade
leaves the door wide open for the proliferation of abusive
sweatshops and toxic facilities. Free trade encourages companies
to set up shop in areas where environmental and labor laws are
the weakest, crowding out small business and cooperatives that
are trying to revitalize the local economy. |