Reframing Global Trade: Fair Trade and Sharia Economics as Ethical Alternatives to Free Trade

Abstract

In the era of globalization, Free Trade has emerged as the dominant paradigm in international trade policy, prioritizing liberalization, deregulation, and minimal state intervention. While widely promoted for economic efficiency, Free Trade increasingly falls short in addressing ethical, social, and environmental concerns, often compromising justice, equity, and sustainability. Despite extensive debates, limited research has examined integrated frameworks that embed moral and socio-economic principles into global trade. This study addresses this gap by exploring the intersection of Fair Trade and Sharia Economics as a normative and practical critique of Free Trade. Fair Trade introduces operational mechanisms for fairness, transparency, and equitable compensation for producers in developing countries, whereas Sharia Economics, guided by the framework of Maqasid shariah, provides a comprehensive moral vision that emphasizes distributive justice, public welfare, and environmental stewardship. Employing a qualitative, literature-based methodology, this research examines how the two frameworks complement each other to offer a more ethical and inclusive trade model. The findings suggest that integrating Fair Trade with Sharia principles offers a viable alternative to conventional Free Trade, promoting a system rooted in justice, inclusivity, and long-term sustainability, particularly in Muslim-majority and Global South contexts. This study contributes to the academic discourse by proposing a unified framework bridging secular and religious economic ethics. From a policy perspective, aligning trade regulations with both Fair Trade standards and Islamic moral principles can transform trade into a tool for human dignity, shared prosperity, and ecological sustainability. Further empirical research is encouraged to operationalize this integrated model across sectors.