Fairtrade purports to work within the market economy but its rise has been largely based on marketing subsidies and public-sector procurement.
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At best, Fairtrade is a marketing device that does the poor little good.
At worst, it may inadvertently be harming some of the planet’s most vulnerable people. There is nothing wrong with being concerned about the working conditions, wages and environment of workers, but we don’t believe Fairtrade is the most effective model.
They make assumptions about agriculture in the developing world – that they must be small farming cooperatives, but this is just not sustainable if countries are to develop.
Free trade was a more effective strategy for reducing poverty, as it encouraged countries to industrialise and develop more efficient farming practices.
Tom Clougherty (Policy Director of the Adam Smith Institute)
Fairtrade is actually failing to operate in countries that suffer from the lowest wages.
Mexico, for instance, is the largest Fairtrade coffee producer in the world, with 51 certified organisations, while Ethiopia has just four and Rwanda 10.
Fairtrade Foundation has tried to monopolise the so-called ethically branded produce market by persuading organisations, schools and towns to declare themselves Fairtrade at the expense of other ethical brands such as Cafe Britt.