Fair trade better than free trade

Fair trade better than free trade

In international relationships, the desire to reap maximum profits by selling products is often hampered by the interests of the destination country in defending its local products. In such cases, strength often speaks louder than fairness. The stronger countries seldom hesitate in exercising pressures on the weaker countries.

This unfair treatment is now felt by Indonesia in its trade with the United States. Minister of Agriculture Bungaran Saragih last week accused Washington of an unfair attitude toward Indonesia in relation to chicken interests. The U.S. has been forcing Indonesia to take its chicken thighs, which are not consumed there, at cheap prices. In contrast, Indonesia's efforts to export chicken breasts to the U.S. have always been blocked. It also banned Indonesia's export of prawns.

Washington can still channel its pressures on the importation of textiles -- a commodity that can be exported to the U.S. under its quota system which is used to protect its local producers in accordance with international trade agreements within the framework of the World Trade Organization (WTO).

Today, Jakarta also suffers headaches caused by Washington's policy of import tariff on agricultural products. According to an official at the Agricultural Ministry, the policy was designed not for the benefit of US consumers but to protect American farmers from cheaper imported products. The word is the government is going to file a complaint with the WTO.

The WTO, as well as the IMF and the World Bank, was not formed to defend the interests of developing countries like Indonesia, but to realize a free world trade which is probably more in line with the interests of the giant capitalists and industrialists of the advanced nations.

It is only fitting that the government firmly supports and protects domestic production, especially in the agricultural sector, which has a larger social and political impact. Production activities form the pulse of this nation. Without them, free trade tends to bring disasters more than blessings. In any case, fair trade is far more important than free trade.--Bisnis Indonesia--