How does fair trade differ from "free" trade?

Fair trade puts humans and the environment at the center of trading relationships, while free trade focuses on maximizing corporate profits.  There is an alphabet soup of free trade agreements that have been developed over the last ten years, including the North American Free Trade Agreement (NAFTA), and the Free Trade Area of the Americas (FTAA) and the General Agreements on Tariffs and Trade (GATT). In all of these trade deals, the emphasis is on giving corporations the ability to move products, capital, and services between borders with as few "barriers" -- like tariffs, environmental laws, and policies that give preference to domestic businesses -- as possible.

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 envrionmental and labor laws are the weakest, crowding out small businesses and cooperatives that are trying to revitalize the local economy.

On opposite end of the spectrum, fair trade promotes equitable trading relationshipss that benefit workers, help sustain the environment, and build healthy communities.

For more information visit Coop America or the Fair Trade Federation.