Fair Trade Without the Froth A Dispassionate Economic Analysis of 'Fair Trade' Sushil Mohan

Link: http://www.iea.org.uk/publicat...
Source: Institute of Economic Affairs

When it comes to the purchase of everyday goods such as coffee, tea and sugar, most consumers believe that sellers of Fair Trade products occupy the high moral ground. Despite its strong statements, however, the claims of the Fair Trade movement have not been tested properly.

This important study, whilst not doubting the position that Fair Trade is part and parcel of a market economy, does question the claims made by the Fair Trade movement. The market economy and free trade – often decried by proponents of the Fair Trade movement – may deliver the benefits that the Fair Trade model brings without the costs and bureaucracy involved in obtaining the Fair Trade label. Furthermore, this study questions the exclusivity often claimed by Fair Trade organisations: there are other social labelling initiatives that perhaps have more transparent objectives.

The author – a trade expert from Dundee University with broad practical experience of international trade – also finds that criticisms of Fair Trade are exaggerated, and he does accept that Fair Trade can bring some benefits to producers in particular circumstances.

This study is essential reading for all those who wish to understand better this 21st-century consumer phenomenon and whether it actually delivers the benefits its proponents claim.

Keywords

Fair Trade

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Children in Slavery through the Ages by by Gwyn Campbell, Suzanne Miers, Joseph C. Miller
Global Health in Africa: Historical Perspectives on Disease Control by Tamara Giles-Vernick
Rumba on the River: A History of the Popular Music of the Two Congos by Gary Stewart
Women and Slavery, Vol. 1: Africa, the Indian Ocean World, and the Medieval North Atlantic by Gwyn Campbell
Women and Slavery, Vol. 2: The Modern Atlantic by Gwyn Campbell
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Healing Traditions: African Medicine, Cultural Exchange and Competition in South Africa, 1820-1948 by Karen Elizabeth Flint
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