Global Trade

World trade has brought huge benefits to rich countries and big companies. The poor have not fared so well. Imbalances of power and resources mean that the poor often cannot compete, and are trapped in unjust cycles of exploitation and inequality. As it works today, the global trading system is heavily weighted in our favour. We get cheap imported goods, yet it's the workers in developing countries who pay the price for our bargains. As consumers we are generally oblivious and unaware of the people behind the products.

Source: Oxfam

The apple pie chart above shows that in this example less than 5% of the price we would pay in the supermarket would actually go to the workers on the ground. This is a similar situation with many imported products from developing countries, and shows that much of the benefit and profit is made outside the originating country.

Contracts with supermarkets are now so important for suppliers that they have to accept unsustainably low prices and other onerous conditions which threaten the viability of their own businesses. When suppliers are squeezed by the supermarkets, they inevitably try to cut their own costs even further. As most of the big companies are already highly efficient, the only realistic way they can cut their costs further is by reducing wages and benefits to workers, and by avoiding costly environmental protection measures.

In theory many people in developing countries could escape poverty through trade, but they are held back by rules and by the squeeze of the system.

“Now listen, you rich people, weep and wail because of the misery that is coming upon you. Your wealth has rotted, and moths have eaten your clothes. Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty.” James 5:1-4

Take a few moments now to consider this passage.

Ask God to reveal his heart of justice to you. Do we need to acknowledge our part in global trade injustice? Pray for our government and other world leaders to act justly and remember the needs of the poor, especially with regard to fairer trade. Ask God for wisdom and passion to help bring forth justice and hope for the oppressed.

“A poor man's field may produce abundant food, but injustice sweeps it away.” Proverbs 13:23

Lord, let justice flow like a river.

Supporting fairer trade by buying Fairtrade goods is one simple way of challenging injustice in a global context. Fairtrade guarantees a better deal for workers and small-scale farmers in poor countries. For more information click on this link to the St. Matthew's Fairtrade webpage.

In 2005, along with CLC Church and Rugby Borough Council, St. Matthew's were founder members of the Rugby Fairtrade Group, which has been set up to promote the concept and practice of Fair Trade within the borough.

Many groups are active in campaigning for Trade Justice including Tearfund, Christian Aid, Oxfam and Labour behind the Label - click on the names for more details.