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Q: Apart from slightly increased cost to the consumer is there any downside to fair trade? If not why does fair trade only operate outside of the mainstream?

Accepted answer:

There are a number of well documented problems with certain types of 'fair trade'. It can be over-r... more »

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Asked by:

Chris Kelly

Date asked:

2 years ago

Status:

RESOLVED, PUBLIC

Tagged topics (1):

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Accepted answer Posted 2 years ago by Brian Wong
1st in Development
There are a number of well documented problems with certain types of 'fair trade'. It can be over-rated - ask how much of your overpriced Green & Black's chocolate actually goes to cocoa farmers, ask how much manufacturing or processing is based in developing countries, ask whether 'fair trade' co-operatives are any better than local monopolies.

In terms of why it stays out of the mainstream, there is a real question mark over whether 'fair trade' principles can survive mass scale production. Moreover, market economics drive prices down; the 'enlightened' consumer has yet to reach a large enough mass to dictate the market. Consequently, fair trade will never be mainstream unless there is a significant consumer shift in putting principle above price.

From a more radical perspective, fair trade is a counter-movement and defines itself in contrast to the mainstream. Can the fair trade movement accept a culture change? I recall the furore over Starbucks launching a fair trade line. Some criticism was justified, the rest was just belly-aching that someone like Starbucks could 'co-opt' the name of the fair trade movement.

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