#FairTradeFacts -1- Fair Trade is unfair, it leaves the majority of farmers worse off
Fair trade is unfair. It offers only a very small number of farmers a higher, fixed price for their goods. These higher prices come at the
expense of the great majority of farmers, who – unable to qualify for Fairtrade certification – are left even worse off.
The essential concern is that the Fairtrade Foundation discourages individuals from even exploring other options, which may well be more effective.
[ Moreover, the Fair Trade system requires an audit payment from the farmers/miners.
Unable to pay these fees the farmers/miners are offered a loan which binds them even more to the so called fair trade certification scheme.
In our view, answering to a different master doesn't make you anything less then a slave! ]
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.
Free trade relies on free individuals voluntarily seizing market opportunities, rather than attempting to manage production and restrict the marketplace. In
contrast to Fair Trade, free trade relies on the absence of the price-fixing arrangements and tariff barriers that restrict international trade.
source:
Unfair Trade by Marc Sidwell, Adam Smith Institute
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