Often the terms free trade and fair trade are used interchangeably.

However, they mean two

completely different things (Barlow 2015). Free trade means that anyone can trade with anyone else
(Zetland 2015). The fairness of this trade depends on the amount of competition between buyers and
between sellers also, free trade emphasize the reduction in barriers between countries, they believe
that a business should succeed or fail based on its ability to respond to the free and open market,
without needing special governmental protections to protect the industry or its workers. While fair
trade advocates focus on the wages and working conditions of labor in developing markets. (Gillikin
2015)
Fair trade can often lead to free trade. This is because when one is able to choose their trading
partners freely is naturally part of getting a fair deal. On the other hand, free trade does not naturally
lead to fair trade. Businesses with a lot of clout can do what they want if trade is free but not fair. The
freedom to exploit people is not a vital one for free trade, so fair trade is more important. However,
when two parties are willingly trading items they wouldn't be making the trade if they both didn't
believe that they each are getting something of greater value. Most other definitions of "fair trade"
require one to believe that items have an equal value to everyone, which simply doesn't accommodate
the inherent differences in taste and needs across different cultures, geographies, and situations.
Free trade can often be considered as fair trade, because the exchange of goods only happens if both
parties voluntarily and mutually agree, so both sides are better off. "Fair trade" is open to distortions
and reduces the benefits of trade. For example GM blocked trade in the 1970s, and this prevented GM
from being exposed to competition and thus prevented them from improving the quality of their
vehicles, harming them later on. America is only 5% of the world's population, with free trade and a
competitive business environment, America can win the competition, open up 95% of the world's
markets and flourish (Contra 2015).
Instead of free trade, leaders could explore the benefits of fair trade. According to the Charter of
Fair Trade Principles, fair trade is a trading partnership, based on dialogue, transparency and respect
that seek greater equity in international trade. It contributes to sustainable development by offering
better trading conditions to, and securing the rights of, marginalized producers and workers. Fair
Trade Organizations, backed by consumers, are engaged actively in supporting producers, awareness
raising and in campaigning for changes in the rules and practice of conventional international trade.
(Heffner 2015)
Free trade can be fair, but agreements opens the market to powerful producers where they can use
their market power, while keeping others closed and uncompetitive, this is neither free nor fair. The
little guy (the consumer, the small producer, the poor farmer, the developing country) will eventually
get hurt. When nobody has special treatment and the field is truly level, then free and fair will mean
the same thing. Competition may be tough on the level playing field, but political power and legal
leverage tilt it further. Free trade is fair trade when it is truly free. (Zetland 2015)
It is often believed that free trade is fair because it offers the poor the single greatest hope of a better
life through economic growth and development. Free trade is not content to simply sustain the poor in
their place; rather it offers them and their children the hope of a more comfortable and prosperous
existence, released from the backbreaking toil and sweat of agricultural labour. (Sidwell 2015)
For poor countries to benefit from fairer trade they need more and better aid aimed at improving
health, education, roads, ports, electricity, telecommunications, banking and legal systems. Without a
healthy and highly skilled workforce and functional infrastructure, transport, legal and commercial
system those are the necessity most poor countries will not be able to take up the new export
opportunities offered by fairer trade. If fairer trade rules were combined with more and better aid and
debt relief, in this way the silent call to end global poverty may finally be answered. (Groot, J 2015)
But fair trade, ultimately, is not fair. Free trade is the future.

Barlow, G 2015, Free Trade, Fair Trade: Whats the Difference? Accessed 26/10/2015
http://economyincrisis.org/content/free-trade-fair-trade-whats-the-difference
Contra 2015, Is fair trade more important than free trade? Accessed 26/10/2015
http://www.debate.org/opinions/is-fair-trade-more-important-than-free-trade
Gillikin, J 2015, Free Trade vs. Fair Trade. Accessed 26/10/2015
http://smallbusiness.chron.com/trade-vs-fair-trade-1683.html
Groot, J 2015, Free trade is not fair trade for the poor. Accessed 26/10/2015
Theage.com.au. Available at: http://www.theage.com.au/news/opinion/free-trade-is-not-fair-trade-forthe-poor/2005/12/13/1134236068743.html?page=2
Heffner, T 2015, We Need Fair Trade, Not Damaging Free Trade. Accessed 26/10/2015
Economyincrisis.org. Available at: http://economyincrisis.org/content/we-need-fair-trade-notdamaging-free-trade
Sidwell, M 2015, Unfair Trade. Accessed 26/10/2015
http://www.adamsmith.org/sites/default/files/images/pdf/unfair_trade.pdf
Zetland, D 2015, Free Trade Can Be Fair Trade. Accessed 26/10/2015
http://www.kysq.org/pubs/freefair_GV.pdf