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Fair Trade Is Counterproductive - And Unfair

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  • David R. Henderson
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    Abstract

    "Fair trade - paying a price premium for commodities based not on quality but on employment and other conditions - is counterproductive and unfair. It results in consumers getting a lower-quality product. Much of the gain from the price premium goes to the fair-trade bureaucracy rather than to the producer. Fair trade may even, if effective, destroy the banana industry. A better solution for consumers and third-world producers is to abolish all remaining trade barriers." Copyright (c) 2008 The Author. Journal compilation (c) Institute of Economic Affairs 2008.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Economic Affairs.

    Volume (Year): 28 (2008)
    Issue (Month): 3 (09)
    Pages: 62-64

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    Handle: RePEc:bla:ecaffa:v:28:y:2008:i:3:p:62-64

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    Cited by:
    1. Claire Chambolle & Sylvaine Poret, 2013. "When fairtrade contracts for some are profitable for others," Working Papers 168378, Institut National de la Recherche Agronomique, France.
    2. Coulibaly, Mantiaba, 2010. "Opportunités et limites des systèmes de vérification des produits agricoles : cas du commerce équitable," Economics Papers from University Paris Dauphine 123456789/5229, Paris Dauphine University.
    3. Coulibaly, Mantiaba, 2010. "Relationship in a fair trade market: how to create and manage value," Economics Papers from University Paris Dauphine 123456789/5232, Paris Dauphine University.

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