Trading Up

Both concentrate on trade liberalization's perils, though fair traders often frame the issue in social-justice terms, rather than simply positing a link between restricted trade, job protection for domestic workers and a healthy domestic economy. Free trade's opponents note that a purely market-based approach to trade will have "unfair consequences" if domestic regulations-such as labor rules, internal taxes or laws affecting international distribution-between the trading partners differ. [...] a cost-effective firm operating in a competitive environment will oblige other firms to engage in competition for profits.\n In developing and emerging markets, where economic institutions are weak, these agreements could prove to be especially significant to continued economic development.