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Fair Trade Is Counterproductive - And Unfair

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  • David R. Henderson

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.

Suggested Citation

  • David R. Henderson, 2008. "Fair Trade Is Counterproductive - And Unfair," Economic Affairs, Wiley Blackwell, vol. 28(3), pages 62-64, September.
  • Handle: RePEc:bla:ecaffa:v:28:y:2008:i:3:p:62-64
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    Cited by:

    1. Andreas Chatzidakis & Minas Kastanakis & Anastasia Stathopoulou, 2016. "Socio-Cognitive Determinants of Consumers’ Support for the Fair Trade Movement," Journal of Business Ethics, Springer, vol. 133(1), pages 95-109, January.
    2. repec:dau:papers:123456789/5229 is not listed on IDEAS
    3. repec:dau:papers:123456789/5232 is not listed on IDEAS

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