Hi,
What are the differences between Free Trade and Fair Trade? Free Trade vs Fair Trade?? Are free trade and free-market the same thing? What makes fair trade different from conventional trade? Which is better free trade or fair trade?
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CrazyMan
Difference Between Free Trade and Fair Trade
Free Trade and Fair Trade may sound similar, but they are actually opposite to each other. With the increase in global commercial and trade activities, the jurisdiction in which products are purchased and used has changed significantly. This results in the regulation of commercial activities mainly through – Free Trade and Fair Trade.
Free trade provides more freedom within the global trade market and entails the bilateral agreement between countries. The countries involved in free trade allows unrestricted import and export of goods and focus on removing restrictions, tariffs, and regulations to promote trade. The primary purpose of allowing free trade is to enhance the efficiency of the global markets and improve the economic growth of involved countries.
Fair Trade is based on the dialogues, transparency, and respect between two trading nations to have greater international trade equity. Fair Trade reduces the exploitation in the trade market, reduces human rights and environmental violations.
The main purpose of fair trade is to secure marginalized groups’ rights, offer better wages, promote standard working conditions, and stop child labor. The fair trade tries to regulate the violations involved in trade between the involved nations. Let us now move to the Difference Between Free Trade and Fair Trade.
Difference Between Free Trade and Fair Trade
Some economists support free trade as it provides the least overheads in the production process, which results in low-pricing goods and services and benefits for end-customers and improves the economy. But other groups of economists support fair trade, as they believe that fair trade policies add up more consumers, and additional price for fair labor is outweighed by net economic benefit.