Trade

Millions of people around the world suffer due to trade injustice. Trade rules only make the rich richer, while the poor sink deeper and deeper into poverty. No matter how hard they work, they lose money to the world’s developed countries.

The end result is that half the world’s population now lives on under $2 a day. Trade rules are decided upon at an international level with every country’s interests at heart, but in reality, they are arranged in favour of the wealthier countries such as the USA.

Large international organizations (IFI or International Finance Organizations) set these trade rules, which are decided according to which country has the most economic influence. This means the richest countries steer the decision-making process, resulting in the poor countries losing out. The three main organizations that set the rules are:

·        World Trade Organisation (WTO)

·        World Bank

·        International Monetary Fund (IMF)

Between them, they manipulate poor countries to allow large multi-national companies and foreign imports, pushing out all local competition.

The WTO met in Doha earlier this year to discuss development and trade, specifically to discuss trade negotiations to favour poor countries and acknowledge the unequal nature of global trade, led by wealthier countries at the expense of the developing world.

However, this failed as the USA felt that developing countries would not open their markets to developed countries the way it was asked, and so there was no point in continuing the talks. It wanted what it considered a fair deal: rich countries open their markets to the world the poor countries do the same in return. This sounds fair, but does not make sense. This reciprocation would result in continuing unfair trade under the pretext of equality.

Unfair trade kills. For example, IPS News reported that “India’s federal agriculture minister Sharad Pawar confirmed in May that between 1993 and 2003, at least 100,000 farmers had killed themselves because of their inability to repay loans,” because the agriculture sector was suffering due to the unfair nature of global trade.

For a less morbid scenario, this will provide a slightly better understanding of the problem:

Dennis, a Kenyan planter, grows tea on his farm and sells these at the local market, making enough money to support his family and plan for next year’s crop.

The following month, a foreign store opens up at the market, selling tea from China at cheaper subsidized rates. Naturally, people buy the cheaper tea, eventually forcing him to the brink of bankruptcy.

He now does not have sufficient money to support his family. He finds a job growing and exporting tea to the foreign market for incredibly lower prices.

In the United States, a woman buys a kilo of his tea for $3.00. He would receive less than $0.05. This is not enough for him to support his family with. He descends further into poverty, unable to afford healthcare or education for his children and is the start of a vicious cycle.

What can we do? We need to demand a change to the rules today. We need to campaign for the rules to be re-written in favour of the poorer countries. We are not asking for charity. We merely need to ensure that farmers and such from developing nations have an equal opportunity to develop and build their own industries.

Governments are listening and will continue to listen if we ask loudly enough. Together, they have control over the IMF, WTO and World Bank.
More and more items are now available that allow “fair trade”, which guarantee that farmers get a fair deal for their product.
As awareness about the living standards in developing countries increases, so do the demands for fairer trade. Fair trade can be beneficial to you and me as well. Fair trade could result in better and higher quality product as well as a greater variety.

On the path to the eradication of poverty Fair Trade is a stepping stone that we must successfully cross. Join us and the millions who are part of our campaign in demanding justice and not charity.