Unfair Trade?

The Adam Smith Institute has just published Unfair Trade, a report which argues that for all its good intentions, Fairtrade is not fair. It sets out a number of arguments explaining this thesis and argues in conclusion that "free trade is the most effective poverty reduction strategy the world has ever seen. If we really want to aid international development we should abolish barriers to trade in the rich world, and persuade the developing world to do the same. The evidence is clear: fair trade is unfair, but free trade makes you rich".

The Fairtrade Foundation has responded to the report:
"The Fairtrade Foundation finds it extremely sad that the Adam Smith Institute has chosen Fairtrade Fortnight to publish an inaccurate report, claiming that Fairtrade does 'more harm than good'. This completely contradicts our experience of working with farmers and workers in developing countries as part of a coalition that includes all the major development agencies in the UK. Releasing this report when thousands of people are trying to make a difference to global poverty by promoting Fairtrade products, is an insult to the effort and commitment of Fairtrade producers and their supporters in the UK."