Fair Trade

Wiki Definition

Free trade is a market model in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions. These restrictions may increase costs to goods and services, producers, businesses, and customers, and may include taxes and tariffs, as well as other non-tariff barriers, such as regulatory legislation and quotas. Trade liberalization entails reductions to these trade barriers in an effort for relatively unimpeded transactions.
One of the strongest arguments for free trade was made by classical economist David Ricardo in his analysis of comparative advantage. Comparative advantage explains how trade will benefit both parties (countries, regions, or individuals) if they have different opportunity costs of production.
Free trade can be contrasted with protectionism, which is the economic policy of restricting trade between nations. Trade may be restricted by high tariffs on imported or exported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws designed to protect domestic industries from foreign take-over or competition.
Free trade is a term in economics and government that includes:
trade of goods without taxes (including tariffs) or other trade barriers (e.g., quotas on imports or subsidies for producers)
trade in services without taxes or other trade barriers
The absence of trade-distorting policies (such as taxes, subsidies, regulations or laws) that give some firms, households or factors of production an advantage over others
Free access to markets
Free access to market information
Inability of firms to distort markets through government-imposed monopoly or oligopoly power
The free movement of labor between and within countries
The free movement of capital between and within countries

an easy example we all think of is Starbucks, I remember they used to sell Costa Rican coffee and I believe because of the agreement, stopped buying it. I think it is unfair for such a big corporation to not give enough back to its very source of profit. Its like having one last backyard of trees and selling paper without watering the trees enough. Ok it may seem mean to compare a tree to a coffee farmer, but thats what it is. The tree will stop growing as much, like the farmer may stop working, and without them you have no forest, or crop. The price paid to coffee farmers is at a 30 year low and there are 2 billion cups of coffee sold per day. Starbucks sells free trade, but only for a small percentage of their coffee, the whole bean is not fair trade, which in my opinion should have some downfall. However SBUX is not doing so bad, since 1992 sales have increased, until these past two years.