A fairer world - The Tasmanian Center for Global Learning

Did you know?
  • Rich countries spend just over $1 billion a year on aid for agriculture in poor countries, and just under $1 billion a day subsidizing agricultural overproduction at home. *
  • Cows in Europe receive subsidies of over $2/day – more than the income of nearly half the world’s people. *
  • For every $1 worth of high quality Arabica coffee sold in the US, a Tanzanian farmer receives less than 1 cent. *



Trade

Let’s face it, international trade agreements are not the most exciting topic of conversation. But the rules of trade affect the price of almost everything we buy, and they can mean life or death to farmers and factory workers in low-income countries.

The existing rules of international trade are heavily stacked against the poor. Under the Central American Free Trade Agreement (CAFTA), for example, the United States is allowed to sell its rice cheaply in six Central American countries while maintaining 100% tariffs on imports from these countries.

To make matters worse, rich countries spend $300 billion a year subsidizing their agriculture, artificially depressing global prices and keeping millions of farmers in poverty.

The price of goods in high-income countries often bears little relation to the earnings of the workers who produce them. For example, a factory worker in Honduras may be paid 15 cents to sew a shirt that sells for $40 in New York.

Recent campaigns have publicised such injustices and lobbied governments to abolish unfair trade barriers and subsidies. In addition, some major brands and supermarkets have launched fair trade lines, giving consumers the chance to make ethical choices when they do their shopping.


See also Agriculture, Globalisation, Aid and debt, Corporations, Employment.


Find out more about world trade

  • Public Citizen challenges and monitors corporate globalisation through its Global Trade Watch, which includes background on the World Trade Organization and the major international trade agreements. 
  • Global Exchange has a good introduction to the global economy with an overview of the main players and their instruments.
  • The 2005 edition of the United Nations Development Programme's Human Development Report focuses on aid, trade and security in an unequal world.
  • Make Trade Fair, the Oxfam site looks at  issues relating to world trade and fair trade.

Fair trade offers a better way

  • For the underlying principles, facts about the industry and examples of positive outcomes, start off with the Fair Trade Federation website.
  • Global Exchange's Fair Trade page has news, resources and links to give you a good perspective on what fair trade is all about.