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.
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.