This paper examines the role of fair trade in the Czech Republic's economic development and international standing. Drawing on the Czech Republic's membership in organizations such as the WTO, EU, NATO, UN, and OECD, the paper argues that the Republic benefits substantially from current fair trade arrangements, scoring an 85 out of 100 on a fair trade index. The paper also considers the broader debate over whether fair trade agreements genuinely benefit developing nations or entrench existing inequalities. While the Czech Republic's size, diplomatic reach, and institutional affiliations position it favorably within the global trading system, the paper concludes that smaller, less-established nations often remain disadvantaged and that wealthier WTO members must take greater responsibility for equitable trade reform.
Fair trade is designed to be fair to all countries, but in many cases what is "fair" to one country — or even several countries — leaves other countries at a distinct disadvantage. This paper examines the Czech Republic and whether fair trade is appropriate for it. This is an important consideration because the Czech Republic has fought hard for independence and its own sense of identity in the world. Now that it has established these things, it has also moved into a different status category relative to other nations. Trade is designed to promote development, and on a scale of 1–100, the Czech Republic has a "fair trade" score of 85. In other words, most of the fair trade practices seen today work well for the Czech Republic because they offer what is needed to continue developing and moving forward. Without that ability to develop, any country can find itself struggling to succeed — something that can and should be avoided by implementing any development plan properly and following it consistently.
One of the things the Czech Republic has in its favor when it comes to fair trade is its membership in many world organizations. These include the North Atlantic Treaty Organization (NATO), the International Whaling Commission, the Organization for Economic Co-operation and Development (OECD), the United Nations (UN), the International Energy Agency (IEA), the International Monetary Fund (IMF), and the World Trade Organization (WTO) (Stiglitz & Charlton, 2006). By belonging to so many different groups, the Czech Republic gives itself a better opportunity to work with other countries and to ensure that every country is treated fairly. Trading between countries is a nearly vital exercise, and when countries work to trade with one another they are much more likely to develop stronger economies that they can continue to improve through expanded trade.
Being a member of the United Nations (UN) is also important for the Czech Republic, as it participates in some of the UN's more specialized agencies. One of those agencies is the General Agreement on Tariffs and Trade. Being part of that agency is highly significant because it allows the Republic to stay aware of what is changing and to focus on what kinds of changes it may wish to see in the future. When a country is able to understand the true nature of the trade and tariff issues faced by the world, that country is also more likely to be understanding of the issues faced by other countries (Garrett, 1996). Additionally, the country can focus on ways to help other countries — and the entire world — achieve more successful trade arrangements, because it will be deeply aware of how current regulations affect countries in practice. Until a country works actively within the system, its government can find it difficult to fully understand the issues surrounding tariffs and trade, which can lead to problems in the future.
The Czech Republic is also a member of the European Union (EU), and has been a member of that organization since 2004 (Stiglitz & Charlton, 2006). That membership is highly significant and fundamental to the Czech Republic's continued independence and success. Relations between the Republic and other nations have generally been good, although there have been a few disagreements. The most notable of those disagreements involved an amendment to a gaming law and agricultural quotas. The gaming law issue is not especially significant for the purposes of this paper, but the agricultural quotas are. Those quotas are directly linked to trade, and it is very important to understand that trade issues can affect more than just how one country exchanges goods and services with others. When there are trade imbalances, economic problems can follow, which in turn can lead to serious difficulties within a country. By maintaining good trade relations with other nations, the Czech Republic can avoid some of the problems that arise when trade breaks down.
Another benefit the Czech Republic has when it comes to fair trade is its good relations with other countries (Hochman, 1998). It currently holds strong diplomatic relations with over 85 other countries, and that gives it considerable influence and the ability to work with various nations to resolve trade issues that might not be solved easily — or at all — if those relations were strained. Sixty-three of the countries with which the Czech Republic has good relationships maintain permanent representation in the Czech capital of Prague, which is a strong indication that these relationships are solid and not easily disturbed. Becoming a member of NATO in 1999 was also a very significant step for the Republic, providing a major milestone in both security orientation and foreign policy (Stiglitz & Charlton, 2006). While these matters are not directly related to trade, they are connected in that the trust countries place in one another, and the way each country conducts itself, are both very important factors in whether other countries are willing to trade with it. Countries that are serious about international trade are also deeply interested in the security posture and foreign policy beliefs of their trading partners (Rich, Wilson, & Postan, 1977; Czech Republic to join Schengen, 2006).
"WTO's global role and trade inequality debate"
"How fair trade harms less-established economies"
Garrett, S. A. (1996). Conscience and power: An examination of dirty hands and political leadership. Palgrave Macmillan.
Hochman, J. (1998). Historical dictionary of the Czech State. The Scarecrow Press.
Rich, E. E., Wilson, C. H., & Postan, M. M. (1977). The Cambridge economic history of Europe: The economic organization of early modern Europe. Cambridge University Press.
Stiglitz, J. E., & Charlton, A. (2006). Fair trade for all: How trade can promote development. Oxford University Press.
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