Saturday, December 24, 2011

Freedom Isn't Free Trade



    Nothing in the universe is more magnificent and awe inspiring than Earth. Over seventeen billion miles of space have been explored, yet Earth is vastly unique compared the rest of our solar system. This is because Earth has the perfect balance of conditions to make sustaining life possible. Upon this large chunk of space rock exists a vast ecosystem of fauna, flora, and other natural resources. Since our genesis humans beings have been discovering new ways of improving our livelihood which include the construction of tools, improved farming methods, and innovative utilities. Since the industrial revolution started in the mid 1700’s Earth has seen a giant rise in production, and with this came the rise of trade. Free trade is the process in which global markets are integrated so that all countries may trade openly; a process which I believe could be a vital part of our survival if enacted properly. However, free trade typically benefits wealthy businessmen and shoves the producer on the back burner. What we need is a system of fair trade where the producer is not only being compensated fairly but also has basic safety standards and quality of life.

    Whether you are aware or not, every aspect of our lives can be linked to globalization. A majority of goods in America are produced elsewhere and imported into this country. Many of the delicious produce items that we consume regularly are grown outside of the US. The ability for people to trade their goods globally is wonderful, and there are many reasons why we should pursue globalization, but without the proper checks and balances it is a recipe for disaster. One thing that it seems people forget to realize is that Globalization is not a new concept. There have been international trade routes in existence for thousands of years, yet within the last century legislation has been passed that changes the way we do business.

    The North American Free Trade Agreement, drafted in 1992 during George H.W. Bush’s administration, but finalized and signed into effect during president Clinton’s first term, is a treaty intended to dissolve trade barriers between the United States, Canada, and Mexico.  Proponents of the negotiation claim that it improves overall gross domestic product for all three nations, creates more job availability, increased exports, and increased transparency through nations. On the other side of the fence are those who oppose the legislation claiming that it supports corporate expansion, limits environmental regulations, and promotes outsourcing which in turn diminishes employment rates. Since the signing of this bill Americans have seen a rampant loss of employment due to the level of industrial jobs shipped to Mexico which in turn has played a role in the foreclosure crisis.

    The modern rules that delegate how trading occurs in the global market are overseen by the World Trade Organization. The WTO is an international organization whose aim is to supervise and liberalize trade on a global level. Their goal is to “help producers of goods and services, exporters, and importers conduct their business.” Their mission statement sounds like a great way to make some positive change in the world, but like the old adage goes you can’t judge a book by its cover. There is a dire need for all of the outcomes that the WTO aspires towards, but these goals are not being accomplished. Yes, import/export sales numbers are at an all time high with many countries in the tens of trillions in sales, but there still exists an obscene balance of power that prolongs global injustices such as poverty, illness, and starvation. They expand and conquer under the guise of humanitarian efforts all the while hundreds of thousands of mothers watch their children starve to death everyday. With such high profit margins you would think it would be quite simple to help impoverished nations, but there is a grotesque abuse of power going on by the corporate elite.

    In dissolving trade barriers between nations it allows for jobs to be outsourced to low income countries who will do the work for a small fraction of the original cost. This has had some very undesirable outcomes, not only at home, but specifically to the citizens of these poor nations. Many of these countries have no existing labor regulations, so working conditions can be very unsafe, workers are not compensated fairly, and environmental standards are not being upheld.

    To get a better understanding of the inequalities of free trade we will take a look at the coffee industry. Seventy five percent of coffee in the world market is produced by small scale farms. The average coffee farmer earns fifty cents per pound for their goods. These farmers don’t have efficient machinery to harvest their crops; they bend over and pick them by hand. They do not have vehicles to drive around fifty pound bags of coffee, but a lucky few do own an emaciated burro. These people are being paid pennies for goods that sell in the US upwards of nine dollars per pound.

    Many Americans complain of the rampant increase in illegal aliens, but they fail to see the fact that hundreds of thousands of workers are displaced every year, and they flee to America in hopes of finding a prosperous way of life. It wasn’t but a few hundred years ago that Europeans started swarming to America in hopes to escape their rich oppressors. It took a revolution, but they stood up for their rights and won. It is time for the citizens of this world to take the power back from those who place themselves in high accord. We need to establish a system of fair trade wherein people will be fairly compensated for their efforts, basic safety needs will be upheld, and workers will have unalienable rights. The current system we have only furthers our global crisis and it needs to be reformed before we all lose our livelihoods.

    “What shall it profit a man if he gains the whole world but loses his soul?”
-Yeshua Ben Yosef

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