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Evaluating The Criticisms Of Fair Trade

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  • Alastair M. Smith

Abstract

This article critically examines some of the most common arguments used to support the view that Fair Trade should be rejected by consumers and businesses seeking to socialise their economic decisions. Overall the paper finds that the majority of such criticisms lack evidential rigour and sophisticated theory but instead rely on a high degree of rhetorical aptitude. While this does not naturally lead to the position that Fair Trade is necessarily beneficial, the conclusion reflects on a substantial amount of positive evidence to suggest that Fair Trade should not be abandoned by consumers or businesses.

Suggested Citation

  • Alastair M. Smith, 2009. "Evaluating The Criticisms Of Fair Trade," Economic Affairs, Wiley Blackwell, vol. 29(4), pages 29-36, December.
    • Handle: RePEc:bla:ecaffa:v:29:y:2009:i:4:p:29-36
    DOI: 10.1111/j.1468-0270.2009.01944.x
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    Cited by:

    1. John James Cater & Lorna A. Collins & Brent D. Beal, 2017. "Ethics, Faith, and Profit: Exploring the Motives of the U.S. Fair Trade Social Entrepreneurs," Journal of Business Ethics, Springer, vol. 146(1), pages 185-201, November.
    2. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    3. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    4. Durevall, Dick, 2017. "Who Benefits from Fairtrade? Evidence from the Swedish Coffee Market," Working Papers in Economics 708, University of Gothenburg, Department of Economics.
    5. Claire Chambolle & Sylvaine Poret, 2013. "When fairtrade contracts for some are profitable for others," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(5), pages 835-871, December.
    6. Goff, Sarah C., 2016. "Fair trade: global problems and individual responsibilities," LSE Research Online Documents on Economics 68285, London School of Economics and Political Science, LSE Library.
    7. Ken Peattie & Anthony Samuel, 2018. "Fairtrade Towns as Unconventional Networks of Ethical Activism," Journal of Business Ethics, Springer, vol. 153(1), pages 265-282, November.
    8. David Reinstein & Joon Song, 2012. "Efficient Consumer Altruism and Fair Trade Products," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(1), pages 213-241, March.

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