Fair Trade and Politics

Fair Trade aims to achieve greater equity in international trade and to reduce poverty by offering better trading conditions to marginalised producers and workers – especially in the South. For those reasons the European Commission stated in 2002 that they will support fair trade plans in the private sector.

Fair trade has also become a more prominent issue in politics in the United States as well. In the early 90s, as The New Democrat policy makers of the Clinton administration began to persue a policy of fair trade, particularly in the promotion of the North American Free Trade Agreement (NAFTA), which would provide for largely unfettered trade between Canada, the United States, and Mexico. Union workers and liberals criticized the treaty, and surmised that the low wages and environmental standards would destroy US manufacturing, while promoting worker abuse. Despite fierce resistance, NAFTA was approved with considerable support from New Democrats.

Throughout the mid-90s, many of the fears of NAFTA critics seemed to come to fruition, with many manufacturing firms closing plants in the US and relocating their operations to Mexico. Furthermore, many of the promises of NAFTA proponents, such as economic prosperity in Mexico and expanded US exports, seemed to fall well short of predictions. As a result, the Clinton administration began to add more and more prerequisites to its trade agreements to head off some of the failings of NAFTA.

Fair Trade has often been confused with outright protectionism, however, with critics in particular often labeling it " New Protectionism ". Furthermore, trade policies have often received only marginal attention in US politics, With only two Questions being asked on the issue in the 2004 presidential debate focusing on domestic policy.

During the last plenary session, the 6th of July 2006, the European Parliament adopted a resolution on Fair Trade and Development with an overwhelming majority. The purpose is to come forward with a recommendation and increase public support for Fair Trade. "This resolution responds to the impressive growth of Fair Trade, showing the increasing interest of European consumers in responsible purchasing," said the rapporteur, MEP Frithjof Schmidt, during the plenary debate. "Sales of Fair Trade products in Europe have grown by 20% since 2000. As the EU is by far the largest market for Fair Trade products, accounting for 60 to 70% of worldwide sales, it should lead the way in supporting Fair Trade".
Peter Mandelson, EU Commissioner for External Trade, responded that the resolution will be well-received in the Commission. "Fair Trade makes the consumers think and therefore it is even more valuable. We need to develop a coherent policy framework and this resolution will help us."