Have you noticed that some items you buy - coffee in particular - have the words Fair Trade emblazoned on them.
I am a believer in Free Trade. Not trade with more bureaucracy, but mutually agreed trade between parties. You have something to sell, I want to buy it and we agree a price for the satisfactory goods.
Simple right?
Not according to the many Fair Trade organisations.
Professor Philip Booth had this to say in this IEA Discussion Paper in April 2004:
My criticism of the retail fair trade movement is limited to the way in which it has been promoted. Fair trade proponents should not pretend that it exists on a different moral plane from alternatives.
In this follow up paper of April 2007, Philip Booth and Linda Whetstone said:
The fair trade movement claims that the products it provides are sourced “justly” and that purchasing fair trade products brings economic benefits for the poor. Whilst it is clear that fair trade might bring some benefits to particular groups, whether it brings significant net benefits to the poor in general is questionable. Moreover, the claim that fair trade transactions are more “just” cannot be substantiated. Customers also might be surprised to learn that the majority of the Fairtrade Foundation’s income is spent on promoting its own brand.
Here are some links to the Fair Trade groups:
Please visit the Institute of Economic Affairs for more information on trade issues.
