Fairtrade

Working Papers, 2010

The purpose of FairTrade is to influence world trade, and reduce the unfairness of exchanges. In this article we point out that so far it has done little to increase justice at the global and local levels. This is because it is increasingly adopting the logic of conventional trade. Nevertheless, paradoxically, it could help to improve things by promoting the relocalisation of exchanges between countries or regions that have the same level of development, a prospect that currently cannot be excluded.

2012

World international trade is moving towards more free trade, through globalization and trade liberalization. These moves are guided by trade theories which state that on an aggregated level, nations involved in free trade should benefit, and further that free trade is fair. However, in practice, contradictory views have been raised, stating that free trade may not necessarily be benefiting all participants equally. Rather, other nations, especially developing nations, have become worse-off after opening up their markets for free trade. On the other hand, many developed nations have benefited substantially from free trade. Among other factors, the difference in benefits is believed to have been influenced by the types of commodities being traded (where developing nations mainly trade in primary goods and developed nations in manufactured goods) and unequal power relations (some nations for example, the EU and the US, still adopt protectionism in their agricultural sector). In order t...

Natural Resources Institute, 2009

The Fairtrade movement is a group of businesses claiming to trade ethically. The claims are evaluated, under a range of criteria derived from the Utilitarian ethic. Firstly, if aid or charity money is diverted from the very poorest people to the quite poor, or the rich, there is an increase in death and destitution. It is shown that little of the extra paid by consumers for Fairtrade reaches farmers, sometimes none. It cannot be shown that it has a positive impact on Fairtrade farmers in general, but evidence suggesting it harms others is presented. Many of the weaknesses are due to an attempt to impose political views on farmers and others. Secondly, the unfair trading criteria require that sellers do not lie about their product, nor withhold information that might alter the decisions of a substantial proportion of buyers. It is argued that the system only can exist because of the failure of the Fairtrade industry to give the facts on what happens to the money and what it can be proved it achieves. This unfair trading compromises the reputation of charities in general. Much of the trading may constitute the criminal offence of Unfair Trading in the EU.

This article categorises the emerging conceptualisations of Fair Trade and explores which of them offers the best characterisation of the project. It introduces Fair Trade and establishes a set of desiderata to guide the process of conceptualisation. It is argued that the practices and rhetoric of the project suggest it is best characterised as an attempt to establish a form of interim global market justice in a non-ideal world. Three alternative conceptualisations are explored, some including sub-categories. In each section a description of the view is outlined and it is argued that each such alternative is either an unpersuasive account of Fair Trade or cannot better the one already defended. In the final section the normative debate surrounding Fair Trade conceptualised as an attempt to establish interim global market justice in a non-ideal world is introduced. The article suggests that there are avenues for the project's ethical defence but concludes that this can be settled only with further research.

The Politics of Fair Trade, 2009

Agrekon, 2013

World international trade is moving towards more free trade, through globalization and trade liberalization. These moves are guided by trade theories which state that on an aggregated level, nations involved in free trade should benefit, and further that free trade is fair. However, in practice, contradictory views have been raised, stating that free trade may not necessarily be benefiting all participants equally. Rather, other nations, especially developing nations, have become worse-off after opening up their markets for free trade. On the other hand, many developed nations have benefited substantially from free trade. Among other factors, the difference in benefits is believed to have been influenced by the types of commodities being traded (where developing nations mainly trade in primary goods and developed nations in manufactured goods) and unequal power relations (some nations for example, the EU and the US, still adopt protectionism in their agricultural sector). In order to address market imbalances resulting from free trade, Fairtrade has arisen. Fairtrade aims to improve international trading conditions in order to benefit small-scale farmers and farm workers in the developing nations. The Fairtrade organization further claims that its principles are in line with sustainable development. However, Fairtrade suffers a credibility gap because there is a lack of independent research to support their claims. To date in South Africa, there is little research examining the claims of the Fairtrade organization. In order to contribute to the Fairtrade discussion in South Africa, this study has investigated the validity of Fairtrade's claims that it contributes towards sustainable development. The study utilised primary data, which was collected from ten commercial farms and two small-scale farmer cooperatives located in the Eastern Cape Preliminary | ii and Western Cape provinces that are/were Fairtrade certified. The main reason for including commercial farmers and small-scale farmer cooperatives in the study was for comparing relative impacts in the two Fairtrade structures. The data was then analysed using a sustainable livelihoods framework, which was developed in the study. The study focussed on investigating the impact of Fairtrade tools, which are minimum prices, premiums, pre-financing and support for long-term relationships, on its intended beneficiaries. Minimum prices offered to producers cover production costs and are above market prices, and Fairtrade premiums are to be invested in developmental projects. Therefore, examining the influence of Fairtrade tools on individuals and communities provides an overview of how Fairtrade influences development. The results of the study show that sampled Fairtrade beneficiaries in South Africa have witnessed substantial positive changes as a result of Fairtrade. The Fairtrade initiative has managed to empower small-scale producers and farm workers, as well as leverage development opportunities for their wider communities. It has supported organizational development in the supply chain, facilitated investment in community development projects and in business-related training. Producers, both commercial and small-scale producers, managed to access a market that offers stable prices, and have gained from minimum prices. Furthermore, small-scale farmers have been allowed an opportunity to expand their business into export markets, and enjoyed an increase in incomes. Fairtrade benefits further trickle down to non-Fairtrade community members, in the form of employment creation and community development. Despite positive effects, Fairtrade producers faced challenges, including high Fairtrade administration costs and a small market for Fairtrade commodities. The study concludes that in the face of challenges, Fairtrade brings economic, social and environmental benefits, but as compared to economic and social development, the impact on environmental development is rather limited. Even though that is the case, Fairtrade offers valuable development opportunities to producers in South Africa.