I like the method, for being non-violent and also for kind of promoting diversity (i.e. yet another possibility how to trade). Furthermore, while massive international aid in e.g. Africa have failed, this may be one of the ways to go, as it lets the people help themselves and not just rely on someone else (which is always a problem). You can find much more praise in the rest of internet, just google fair trade or whatever.
However, what I don't like is lack of self-reflexion... If you googled it, you may have noticed there's almost nothing about problems. Let's face it, fair trade idea is just fashionable nowadays, so criticism must step aside.
So here we go (sorted randomly):
- the mentioned lack of self-reflexion
- Fair trade is considered as something like "Ultimate Solution", i.e. any other trade is considered inherently bad; fine, who wants to buy just fair trade, it's no problem, but some fair trade organizations want special privileges from their countries (this is especially the case of EU); considering this, the glance of solving problems tolerantly somewhat wanes :-(
- Fair trade is concerned with the developing countries products. It may mean coffee, cocoa...but also products such as honey. But honey is produced in here as well. So fair trading something like this actually discourages buying from nearby (thus often with less environmental impact) and also worsens the position of local farmers who (while perhaps richer than the third world ones) we may want to support by buying from them as well.
- Some products can be only certified to "smallholders organized in co-operatives or other organizations with a democratic, participative structure."* This may seem nice at first. But then, it excludes some possibly eligible groups - e.g. family farms. More generally it just forces the farmers to follow some standards of social structure considered good by some people in Europe or USA, while it arbitrarily excludes a lot of other possible structures.
- Farmers are paid one fixed price for (e.g.) coffee when just standard "fair trade" and one fixed price for "bio fair trade". It makes no other distinction, so it actually discourages farmers from producing better quality coffee, as they receive the same price anyway.
- The farmers gets just a fraction of the total price. While retailers may take something more, the majority of the price increase is usually taken by the certifying organization.
- There are fees for certification, so while more farmers may achieve it, some of the poorest may not. And, also, certifying organizations are paid not only by the customer, but also by the producer.
- There are frauds. Not to be unexpected, but still unpleasant.
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