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Sunday, November 15, 2009

Is Fair Trade fair?




When I first went into UK supermarket and tried to buy some chocolate, there was an interesting logo which caught my eyes. The logo looks like yin-yang in Chinese culture, and “fair trade” is written below it. Thus I want to know more about fair trade, and I found out something interesting.

Fair trade is an organisation which aims to help producers in developing countries. Its market-based approach advocates the payment of a higher price to producers and as well as social and environmental standards.

It seems that fair trade knows how to catch publics’ attention. People, including me, tend to purchase more products with the logo on it through the image fair trade has been sending to us. However after I look in depth, I keep finding something against “fair” trade.

Marc Sidwell, from Adam Smith Institute, questions that is fair trade fair? In his essay, he points out fair trade is unfair, because it only offers a small number of farmers a higher, fixed price. Also it only helps landowners, not the agricultural labourers who suffer the severest poverty.

Furthermore, most farmers helped by fair trade are in Mexico, a relatively developed country, and not in place like Ethiopia. However, the campaigns we see on the TV or posts are filmed in Africa mostly.

More dark side of fair trade is coming out. Four-fifths of the produce sold by fair trade-certified farmers ends up in non-Fair trade goods. At the same time, it is possible that many goods sold as Fair trade might not actually be Fair trade at all. In that case, who can guarantee that everything with the logo can be really produced by fair trade?

People purchase fair trade products in order to help farmers in developing countries. Before buying them, make sure the fortune goes to them not retailers’ pocket.

2 comments:

  1. I think the fair trade mark is the product of globalisation.Developing countries examined themselves then realize we should change this unfair situation.It seems like "free trade" should be replace by "fair trade".

    Although it is a good start to protecting farmers to sustain their income, undeniably these people are minority.

    I've heard a lot information about is not truly fair as we imagine.In my view,I can't not 100% sure that I do really help the farmers by purchaseing products with fair trade mark. Because there is a possibility that it is just a marketing tactic or a way of suppressing controversy.

    I totally agree with Marc Sidwell points because he speaks out my doubt.Here is another summary about the doubt of fair trade by Alex Singleton:
    http://www.adamsmith.org/blog-archive/001083.php

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  2. woo`,very good questioned.what i think is there is not a obvious standard to prove whether the trade is fair or not fair.but there is a intangible "hand" to control all the trade,they all should obey a hypotaxis of supply and demand which tend to get balance of trade of both side.

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