Summary of Workshop 3's essay; Is fair trade fair?

Is Fairtrade Fair?



The essay provided an objective evaluation  of the internationally controversial issue of the pros and cons of Fairtrading.

 Arguments in support of the concept of fairtrading included:

1. Fairtrading safeguarded workers' rights through the Fairtrade Labelling Organisation International's establishment of reputable trade unions.

2. it promotes stability of income even when the economy is on a downward spiral through the mechanism of  guarantee of a minimum price.

3. by eliminating the "middle man" or intermediary in the chain of supply, there is an increase in the overall income.

Arguments against, incorporated criticisms like:

1.Fairtrade institutions are also accused of ignoring the real issues faced by producers in the chain of supply like the inflated prices that exceed the market value without resolving problems associated with it like oversupply. Oversupply  is a problem faced in the coffee market and instead of addressing this issue, prices are often inflated, the result being that persons are encouraged to continue producing even though the market is saturated.

2. Also Bovard has theory of producers from developing countries taking advantage of the "guarantee of a minimum price policy" as a fall back insurance against economic downturns. He claimed that they would not be able to survive in the real economic world.  

The conclusion reached was that  whether fairtrade is fair or not is dependent upon the individual who is asked the question