1. The government of Canada has been asked to consider mandating that all government purchasing (where possible) be of fair trade identified products. Proponents of this policy suggest that the government might be able to invest less in traditional foreign aid to developing countries if they followed the policy. If you were asked to identify pros and cons of this policy which 5 arguments would you present to the government.

2. Fair trade certification is only one of many niche markets producers in developing countries could target. Organic is another possibility. Identify the pros and cons of deciding to participate in either a fair trade system or an organic system.

3a). Should trade policies be used to influence environmental policies? Why or why not?

b) Domestic environmental policy plays a significant role in the relationship between trade and the environment. Outline the ways that domestic environmental policy influences the impact of trade on environmental quality and on economic welfare.

4. Any international trade agreement rests on three fundamental changes , reducing intervention in international trade , reducing domestic support and defining a trade dispute mechanism. The importance of this last element of the agreements is often overlooked. Identify three ways in which the existence of a trade dispute mechanism is important to developing countries and their active participation in globalization. Is the existence of the WTO trade dispute settlement mechanism important to Canada? Provide an example.

5. How might one characterize goods by their informational characteristics? What relevance does this categorization have to issues of food safety and quality? What implications does this have for policy in the public and private sectors?