by Richard A. Cheatham, Press Media Group, LLC

Very likely you’re hearing a lot about “free trade” and “fair trade.” It’s important not to be confused and manipulated through ignorance on this important matter.

In “free trade” individuals and groups produce and trade as they choose, with no third party preventing them from doing so. Those favoring “fair trade” say they want “justice” and “equitable trading relationships” to alleviate poverty, enhance gender equity, improve working conditions and the environment and to support “distributive justice.” They eagerly define some as “advantaged” and others as “disadvantaged” through their superior judgement and heightened moral awareness.

They want Third World laborers to receive wages reflecting their “dignity,” preferring to insulate them from market realities...from knowing what customers are actually willing to pay for. “Should” is important for them and “must” follows closely behind. So do the guns of the “must enforcers.” Fair traders casually choose not to see the guns behind enforcement of government fair trade schemes.

When people trade freely with each other, what external party has any right to define that trade as unfair? “Fair traders” know they’re wiser and/or more moral than those actually involved in transactions. From where does their right to intervene come? When anyone’s arbitrary concept of “fairness” trumps freedom, the most deadly precedent is established and someone’s brought a gun to the table.

Throughout history, wars have often followed barriers to free trade, whereas free trade actually encourages enemies to be tolerant and peaceful, even minimizing discrimination. In a free trade environment, there’s a disincentive to pursue prejudices, for they can be expensive. In a “fair trade” environment, the tantalizing opportunity to punish your enemies is omnipresent.

Fair trade organizations favor buying products from Third World producers at prices exceeding the natural free market price as a form of charity. They’re free to pay that additional “fair” price, but have no right to demand anyone else pay it also. Charity is voluntary or it’s theft. Without a free market environment, how can a “fair” price be determined anyway?

Despite numerous platitudes to the contrary, the US government frequently employs “fair trade” restrictions through tariffs, subsidies, licensing, etc. Congress passes fat farm bills providing subsidies for the politically connected farming certain crops. The President recently imposed tariffs on foreign producers of certain types of steel and lumber to benefit selected American interests. Fair traders act in behalf of favored minorities at the expense of everyone else.

In free trade both parties prefer what they’re trading for more than what they trade away, or they don’t trade. Both are happier. Free trade even protects the earth’s scarce resources. Countries, like people, are more or less talented at producing specific goods and services. There’s a natural division of labor. Fair trade often results in massive waste.

Bottom line...the freer the trade, the fairer and better the trade for all.

©2005 by Richard A. Cheatham. All rights reserved. Mr.Cheatham is a professional speaker/writer and is syndicated through Press Media Group, LLC. Contact him through, Living History Assoc., Ltd., at www.LHALtd.com or DrawBackVeil@aol.com.