Fair Trade, Free Trade, and Caring a Little More for the World

I am adamant in my belief that any country, no matter how large or small, will always benefit more from trade than without.  For the past three months I have been conducting research on the global banana trade for an international trade class, and the information found has floored me.  While I could bore you for days with facts that only my Econ professor will find interesting, I'll condense it to a few aspects that warrant sharing.

Image Source

Free Trade vs. Fair Trade - What are the differences?

First things first, free trade describes an economic policy in which countries adopt a hands off approach to international trade.  Rather than impose tariffs (taxes on imports or exports) or quotas (limits on import or export quantities), this style of economic theory hinges on the idea that any barriers to trade create more problems than solutions.  Fair trade, on the other hand, operates around the central idea that some countries need a little push in the right direction.  They institute strict regulations and guidelines for groups of farmers to meet and in return offer premiums for the products they export.  The best quality of Fairtrade is possibly it's guarantee to pay a minimum price for products that will never fall below market value.

In a perfect world, free trade would flourish without obstruction.  But the rise of corporations like Walmart, who perpetuate price wars, prevent agricultural workers from receiving adequate pay for their services.  Not to mention American companies like Dole, Del Monte, and Chiquita, who own shares in banana plantations worldwide.  When the money intended to pay the workers who've labored tirelessly only ends up in the hands of a rich CEO of a corporation, it could be cause for new economic policy.

Free, Fair, or Both - Which policy works best?
Proponents on each side of the free and fair trade debate are able to produce compelling evidence supporting both claims, but the question isn't whether fair trade and free trade should be opposing policies.  Take the popular North American Free Trade Agreement between the United States, Canada, and Mexico for example.  "Those who declare NAFTA a success cite statistics showing a surge in trade, jobs, and productivity throughout the free-trade zone.  People who deride NAFTA as a disaster have data that show real job losses, downward pressure on wages, and widening gaps between the rich and poor in participating countries," says Patricia Panchak of Industry Week.
The point is, no matter the economic policy imposed, there will always be both winners and losers.  The trick is finding a balance which creates fewest losers and most winners for all countries involved.  This is why I believe it is necessary to combine both free and fair trade policies in a country by country basis.
When considering countries involved in trade, it is not only necessary but also imperative to factor well being of citizens affected in the gains and losses.  Regardless of whether it is through fair trade or free trade I think we can all agree that all people who work to bring us products should be adequately compensated.

Trade Theories - Further Reading
To find out more about free trade, fair trade, and their respective practices, check out the following links.
Free Trade vs. Fair Trade
Free Trade (Wikipedia)
Fair Trade (Wikipedia)