Take Action Now Toolkits How and Why


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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.

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