Unfair trade between developed and undeveloped countries

I result from Burma, where market market hasn't developed much yet. Therefore the country is in pristine beauty. The country is poor but it has a allure with which nothing can compete because it still possesses extensive portion of forests, this inflatable water in the rivers is real and it smells like nature. This example cannot be detailed to 1 heart's content; you have to see for oneself. When I emerged to Thailand, I had been pleasantly surprised to notice that the whole overall economy was fully available and folks can go shopping for each and every product you can possibly want (not-need). The Bangkok city is radiant and skyscrapers are everywhere. For just one instant, it is very impressive. Looking at the deep picture will present another account.

Thailand has integrated itself into the world market. In another world, it's been assimilated in to the international trade system. Thailand imports a great deal of products from different countries and exports varieties of products back again. Trading is an important aspect of the expanding country. When someone goes shopping, it is sometimes hard to tell apart which product is that country. Not long ago, the saying 'made in a country' is an important part of a product. For instance, 'made in Thailand, or made in India' issues. However, it does not matter anymore with the advance of globalization trade network. The whole economical system is netted so confusingly. An American product will come from China and Japan product from Malaysia. Some people argue that this is the consequence of 'free trade'.

Anti-globalization protesters argued that the volume of world trade has more than doubled since 1950 from $320 billion to $6. 8 trillion. The amount of money invested in the trade has surged to the magnitude that the real money cannot be implied in the financial orders. Digital numbers are symbolized as money instead of conventional one. Some people assert that trade lifted people's lives from poverty. People usually point to China where a huge number of people increased out of poverty brand, even though Chinese language government is still criticized for the stark contrast that prevails in China between wealthy and poor.

Some people still hope that trade will lift people's lives out of poverty. However, when we talk about trade, we have to observe the dilemna, this means international trade. Taking a look at one country won't give us an obvious picture of genuine happenings. The whole world is trading among countries under the concept of 'free trade'. Just what exactly happens to be free trade? Britannica Online Encyclopedia identifies 'free trade' as an insurance plan by which a government will not discriminate against imports or inhibits exports through the use of tariffs (to imports) or subsidies (to exports). (Free trade, BOE) In addition, it explicitly emphasized that a free-trade policy will not necessarily imply a country abandons all control and taxation of imports and exports.

However, no subject how much people claim that the financial system set up by america by the end of Second World Battle brings the concept of 'free trade' and 'success', there's a serious setback that influences a lot of the people in the world. International trade may produce prosperity for people in the wealthy countries but deepen the poverty in the poor nations. As Global Ministries Organization argues -

"Most free trade contracts are not identical and bring about unfair trade routines giving some countries, such as large commercial countries like america, Canada plus some countries in europe, more opportunities than others and putting some countries, such as ones in Latin America, Africa and Asia, vulnerable. Free trade is trade without limitations while good trade is an equitable and reasonable relationship between trading countries. " (Global ministries business, fair trade vs. free trade)

In days gone by, the British proven unfair trade treaties with the countries throughout the world. One of these is the famous Bowring treaty that was forcefully established between Britain and Thailand in 1855. Nowadays there have been various varieties trade contracts. These include bilateral free trade agreements (FTA) between two countries and bigger multilateral agreements like the World Trade Group (WTO), which is an arrangement among 135 countries. There are also regional trade contracts which encompass the establishment of a free trade zone among many countries in the same region. Countries throughout the world establish several different varieties of trade contracts to support their economies.

However, the wealthy countries are the ones that pursued aggressive trade discussions with the other poor countries. Office of america Representative says on its homepage that Trade Agreements can create opportunities for People in america and help grow the U. S. current economic climate. At this moment one might want to stop for some time and think. U. S. current economic climate is the biggest economy on the globe and it is also three or four times bigger than the next economy on earth - now China, formerly Japan. Still, the U. S. is seeking to grow its market which is somewhat irony, because if this occurrence is not influencing others, it is regarded as to be appropriate; however, as we will see in the later part of this paper, a whole lot of trade activities are not fair with regards to poor nations.

The distance between developed countries and growing countries is very big plus some scholars conclude that gap exists because of the unfair practices that are inherent in the machine. For instance, the U. S. control buttons their tariff system high for other countries while forcing other's economies to open up so that American goods can be brought in. In a single mockery folks unfair trade procedures, one analyst from Newsweek journal outlines - "Fair (unfair) trade often consists of some politician or bureaucrat deciding on a amount out of thin air and imposing it on international businesses and American consumers. Rational (unfair) trade means that Jamaica is allowed to sell america only 950 gallons of snow cream a year, that Mexico may sell Americans only 35, 292 bras each year, that Poland may send us only 350 tons of alloy tool steel a year and that Haiti is allowed to sell the United States only 7, 730 tons of sugar. Fair (unfair) trade means permitting each American citizen to consume the same as only one teaspoon of overseas snow cream per time, two foreign peanuts per calendar year and one pound of imported cheese per time. Good (unfair) trade means that the U. S. Congress can dictate more than 8, 000 different fees on imports, with tariffs up to 458 percent. "

As we can easily see here, many growing countries are finding themselves unhelpful amid the American monetary imposition. Most expanding countries produce agricultural products and the products do not find any way out of these country to market far away. In fact, they face hardship to market them in the growing countries because of high tariffs wall space of the developed countries on the agricultural and produced goods they seek to market. Worst of most, developed countries practice subsidizing game on their agriculture at a rate of $1 billion each day, which is a whole lot of money while growing countries spend hardly any money for agriculture even if it's their main monetary sector. Therefore for this reason money, agricultural companies in the developed countries can produce their goods below creation cost and with usage of the marketplaces of growing countries they are able to sell their produce at extremely low prices. This selling and exporting is made certain through trade agreements and trade discussions.

This unfair competition pushes international prices to drop within an man-made manner and triggers rural farmers in producing countries to collapse. This is the way the U. S. defeated Burma in the rice market while Burma in 1960 was the largest rice exporter in the world. U. S. now is still one of the biggest rice exporters on the planet along with Thailand and Vietnam. Sooner or later U. S. provided out free rice to people in Asia as 'development help'. That is a significant blow to rice exporting countries. How do these countries make a deal with U. S. if they are this ambitious?

Moreover, the united states exports wheat at 46% below the creation cost and corn at 20% below development. IN-MAY 2003, World Lender Leader James D. Wolfensohn mentioned that "the average European cow gets more subsidies than the complete average income of the person in Africa. " This means that local producers can not compete in their own domestic markets and the effect is major losses in income.

Another major agricultural product is Coffee and again U. S is involved in this issue. It really is stated that caffeine is the world's second most valuable traded commodity. You can find about 25 million farmers and coffee workers in over 50 countries that produce coffee. The United State governments' greatest food import and second most effective commodity is caffeine. The U. S. brought in 2. 72 billion pounds of espresso from September 2001 to Sept 2002. The U. S. imports coffee mainly from Brazil, Colombia, Mexico, Guatemala and Vietnam. Regrettably, many coffee farmers receive less money for his or her harvest than the cost of its development, forcing them into a circuit of poverty and debt. Why is that? The reason why is situated behind the businesses that sell and buy coffee from local people. In Guatemala for example, caffeine pickers have to choose a 100-pound quota in order to have the minimum wage of less than $3/day. A recent analysis of plantations in Guatemala demonstrated that over 1 / 2 of all coffee pickers don't receive the minimum wage, in violation of Guatemalan labor laws and regulations. Who is responsible for each one of these unfair practices? The root causes will lie in the trade and the concept of 'comparative benefits'. Why do not these folks farm paddy or whole wheat in the first place? It is because the thought of 'cash crop' forces them to seek out dollars rather than survival plants.

One major area against free trade and multinational companies is the problem of HIV medications. Patent rules in the international trade system is affecting dying people in the developing world. Pharmaceutical companies are producing HIV medicines with a high price so that people in the developing countries cannot manage it. Oxfam, a United kingdom NGO is wanting to combat this issue. At an international level, they continue steadily to concern trade organizations, governments, drug companies, among others to make decisions that will assist to enhance the health of an incredible number of poor people by providing usage of affordable generic medicines.

The patent concern is a problem in the trading system. I will talk about one specific report about US patent on "the use of turmeric in wound restoration. " Graham Dutfield (2002) argued that the US Mississippi medical center received all these patent on the 'method' of using turmeric in wound curing. As people would envision, this patent regulations have gone a lttle bit too far. One point they didn't know is the fact Indians have used this method to repair wounds since time immemorial. The Council of Scientific and Industrial Research of India had to request the US patent and Trademark Office to revoke the patent on the basis that turmeric powder is well known about and found in India because of its wound-healing properties, and a lot of technological research has been carried out by Indian scientists that confirms the lifetime of these properties. Finally, the patent was revoked. (p-65)

As mentioned above, there are types of unfair trade techniques in the international trading system. To address these issues require you to definitely have a look at the underlying beliefs of the complete economic system. The concept of comparative gain has forced a lot of countries to produce things which they do not absolutely need and after trading has to be done. A case in point could be the coffee development, cotton development and tobacco creation. In some instances, a great deal of countries trade their produce at the trouble of local human population. Frances Moore Lappe and Joseph Collins (1988) argues that Brazil produced and exported soybeans to nourish Japanese and Western european livestock at the expense of Brazilians' hunger. (p-77). Likewise, Thailand traded cassava, frozen super fruit and poultry products with the western world and the rest of the world while Thai preschools are undernourished. (Lappe and Collins 1988: 76-77)

Most of the times, the national governments are involved in the exploiting the poor while participating in the international trade. They exported food while individuals were hungry at home. It appears to me that these governments are orchestrating with the international monetary system while disregarding the poor people. Encouraging the good trade needs reconsidering a number of factors such as scrutinizing the trade treaties, pressuring the governments through civil sites communities and resisting the American hegemony when it comes to unfair trade.

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