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Article: International Fairtrade Certification Mark
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(Criticisms of Fairtrade: Section removed. Duplication from another article, irrelevant to this article. see talk page.)
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As of 2006, the following products currently carry the FAIRTRADE Mark: [[coffee]], [[tea]], [[chocolate]], [[Cocoa solids|cocoa]], [[sugar]], [[banana]]s, [[apples]], [[pear]]s, [[grapes]], [[plums]], [[lemons]], [[Orange (fruit)|oranges]], [[Mikan|Satsuma]]s, [[clementine]]s, [[lychees]], [[avocados]], [[pineapples]], [[mangoes]], [[fruit juices]], [[quinoa]], [[Capsicum|peppers]], [[green beans]], [[coconut]], [[dried fruit]], [[rooibos]] [[tea]], [[green tea]], [[cakes]] and [[biscuits]], [[honey]], [[muesli]], [[cereal]] bars, [[jams]], [[chutney]] and [[sauces]], [[herbs]] and [[spices]], [[nut (fruit)|nuts]] and nut oil, [[wine]], [[beer]], [[rum]], [[flowers]], [[Football (ball)|footballs]], [[rice]], [[yogurt]], baby food, [[sugar]] body scrub, [[cotton]] [[wool]] and [[cotton]] products.<ref name=FLOPRO>Fairtrade International (2011).[http://www.fairtrade.net/products.0.html Products] URL accessed on August 24, 2011]</ref>
 
As of 2006, the following products currently carry the FAIRTRADE Mark: [[coffee]], [[tea]], [[chocolate]], [[Cocoa solids|cocoa]], [[sugar]], [[banana]]s, [[apples]], [[pear]]s, [[grapes]], [[plums]], [[lemons]], [[Orange (fruit)|oranges]], [[Mikan|Satsuma]]s, [[clementine]]s, [[lychees]], [[avocados]], [[pineapples]], [[mangoes]], [[fruit juices]], [[quinoa]], [[Capsicum|peppers]], [[green beans]], [[coconut]], [[dried fruit]], [[rooibos]] [[tea]], [[green tea]], [[cakes]] and [[biscuits]], [[honey]], [[muesli]], [[cereal]] bars, [[jams]], [[chutney]] and [[sauces]], [[herbs]] and [[spices]], [[nut (fruit)|nuts]] and nut oil, [[wine]], [[beer]], [[rum]], [[flowers]], [[Football (ball)|footballs]], [[rice]], [[yogurt]], baby food, [[sugar]] body scrub, [[cotton]] [[wool]] and [[cotton]] products.<ref name=FLOPRO>Fairtrade International (2011).[http://www.fairtrade.net/products.0.html Products] URL accessed on August 24, 2011]</ref>
==Criticisms of Fairtrade==
 
{{Main|Fair trade debate}}
 
 
 
It is claimed that Fairtrade is unethical on Utilitarian grounds. Consumers are willing to pay more for Fairtrade products in the belief that this helps the very poor.<ref>See for example Costa. (2010). Costa Coffee Hosts National 'Foundation Day' To Encourage Ethical Coffee Consumption. Retrieved from http://www.franchising.com/news/20080612_costa_coffee_hosts_national_foundation_day_to_enco.html ; Niemi, N. (2010). “Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers.” Journal of Business Ethics , 97:257-270; Trudel, R., & Cotte, J. (2009). Does it pay to be good? MIT Sloan Management Review. , Winter; Arnot, C., Boxall, P., & Cash, S. (2006). Do ethical consumers care about price? A revealed preference analysis of Fair Trade coffee purchases. Canadian Journal of Agricultural Economics , 54: 555-565. </ref> The main ethical criterion of critics of Fairtrade is that this money is diverted from the very poor farmers to businesses in rich countries, to moderately poor farmers, to employees of cooperatives or are used for unnecessary expenses, so there is inevitably an increase in death and destitution. This informs criticisms that there is reason to doubt that much of the extra money paid reaches farmers, and that there is reason to believe that Fairtrade harms non-Fairtrade farmers. There are criticisms of what is designated Unfair Trading under EU law. There are also criticisms using many other criteria.<ref> Booth, Philip “Don’t bully the faithful into buying Fairtrade", The Catholic Herald, 20 February 2009; Booth, P. and L. Whetstone (2007) ‘Half a Cheer for Fair Trade’, Economic Affairs, 27, 2, 29–36; Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011 (DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm
 
Carimentrand, A., & Ballet, J. (2010). When Fair Trade increases unfairness: The case of quinoa from Bolivia. http://ethique.perso.sfr.fr/Working%20paper%20FREE-Cahier%20FREE%20n%B05-2010.pdf: Working paper FREE-Cahier FREE n°5-2010; Doppler, F., & Cabañas, A. A. (2006). Fair Trade: Benefits and Drawbacks for Producers. Puente @ Europa - , Año IV, Número 2 - Junio 2006, 53-56.</ref>
 
 
The evidence is that little of the extra money paid by consumers reaches the Third World, let alone farmers there. The Fairtrade Foundation does not monitor how much extra retailers charge for Fairtrade goods, and retailers almost never sell identical Fairtrade and non-Fairtrade lines side by side, so it is rarely possible to determine how much extra is charged or how much reaches the producers, in spite of the Unfair Trading legislation. In four cases it has been possible to find out. One British café chain was passing on less than one percent of the extra charged to the exporting cooperative<ref>Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011(DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm</ref>; in Finland, Valkila, Haaparanta and Niemi<ref> Valkila, J., Haaparanta, P., & Niemi, N. (2010). “Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers.” Journal of Business Ethics , 97:257-270.</ref> found that consumers paid much more for Fairtrade, and that only 11.5% reached the exporter. Kilian, Jones, Pratt and Villalobos<ref> Kilian, B., Jones, C., Pratt, L., & Villalobos, A. (2006). “Is Sustainable Agriculture a Viable Strategy to Improve Farm Income in Central America? A Case Study on Coffee”. Journal of Business Research , 59(3), 322–330. </ref> talk of US Fairtrade coffee getting $5 per lb extra at retail, of which the exporter would have received only 2%. Mendoza and Bastiaensen<ref> Mendoza, R., & J. Bastiaensen, J. (2003). “Fair Trade and the Coffee Crisis in the Nicaraguan Segovias.” Small Enterprise Development , 14(2), 36–46. </ref> calculated that in the UK only 1.6% to 18% of the extra charged for one product line reached the farmer. All these studies assume that the importers paid the full Fairtrade price, which is not necessarily the case. <ref> Raynolds, L. T. (2009). Mainstreaming Fair Trade Coffee: from Partnership to Traceability. World Development , 37 (6) 1083-1093, p. 1089); Valkila, J., Haaparanta, P., & Niemi, N. (2010). Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers. Journal of Business Ethics , 97:257-270 p. 264), Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics , 68 3018-3025, pp. 3022-3); Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics , 86:3-26, , p. 12); Barrientos, S., Conroy, M. E., & Jones, E. (2007). Northern Social Movements and Fair Trade. In L. Raynolds, D. D. Murray, & J. Wilkinson, Fair Trade: The Challenges of Transforming Globalization (pp. 51–62). London and New York: Routledge.
 
Quoted by Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics , 86:3-26
 
, p. 21.</ref> Many counter-examples would be needed to show that these are not typical.
 
FLO’s own figures <ref> Fairtrade Labelling Organizations International.: 2010, Annual Report 2009-2010. Retrieved May 27, 2011, from http://www.fairtrade.net/fileadmin/user_upload/content/2009/resources/FLO_Annual-Report-2009_komplett_double_web.pdf </ref> are compatible with this. They claim that 1.53% of retail prices reach the Third World, and, since Fairtrade charges a 3% licencing fee at wholesale, the maximum that reaches the Third World, even if traders charge low margins is 50%. This would be unacceptable to most charities.
 
 
The Fairtrade Foundation does not monitor how much of the extra money paid to the exporting cooperatives reaches the farmer. The cooperatives incur costs in reaching the Fairtrade political standards, and these are incurred on all production, even if only a small amount is sold at Fairtrade prices. The most successful cooperatives appear to spend a third of the extra price received on this: some less successful cooperatives spend more than they gain. While this appears to be agreed by proponents and critics of Fairtrade<ref>e.g. Utting-Chamorro, K (2005). Does Fairtrade make a difference? The case of small coffee producers in Nicaragua. Development in Practice, Volume 15, Numbers 3 and 4, June 2005, Berndt, C. E. (2007). Is Fair Trade in coffee production fair and useful? Evidence from Costa Rica and Guatemala and implications for policy. Washington DC.: Mercatus 65 Policy Series, Policy Comment 11, Mercatus Centre, George Mason University.</ref>, there is a dearth of economic studies setting out the actual revenues and what the money was spent on. FLO figures<ref> Fairtrade Labelling Organizations International.: 2010, Annual Report 2009-2010. Retrieved May 27, 2011, from http://www.fairtrade.net/fileadmin/user_upload/content/2009/resources/FLO_Annual-Report-2009_komplett_double_web.pdf </ref> are that 40% of the money reaching the Third World is spent on ‘business and production’ which would include these costs, as well as costs incurred by any inefficiency and corruption in the cooperative or the marketing system. The rest is stated to be spent on social projects, rather than being passed on to farmers.
 
There is no evidence that Fairtrade farmers get higher prices on average. Anecdotes state that farmers were paid more or less by traders than by Fairtrade cooperatives. Few of these anecdotes address the problems of price reporting in Third World markets<ref>See Bowbrick, P, “Are price reporting systems of any use?”, British Food Journal. 90(2) 65-69 March/April. 1988. Current international research on Third World market information systems is given at http://www.sim2g.org/.</ref>, and few appreciate the complexity of the different price packages which may or may not include credit, harvesting, transport, processing, etc. Cooperatives typically average prices over the year, so they pay less than traders at some times, more at others. Bassett (2009) <ref> Bassett, T. (2009). Slim pickings: Fairtrade cotton in West Africa. Geoforum. </ref> is able to compare prices only where Fairtrade and non-Fairtrade farmers have to sell cotton to the same monopsonistic ginneries which pay low prices. Prices would have to be higher to compensate farmers for the increased costs they incur to produce Fairtrade. For instance, Fairtrade encouraged Nicaraguan farmers to switch to organic coffee, which resulted in a higher price per pound, but a lower net income because of higher costs and lower yields.<ref> Kilian, B., Jones, C., Pratt, L., & Villalobos, A. (2006). “Is Sustainable Agriculture a Viable Strategy to Improve Farm Income in Central America? A Case Study on Coffee”. Journal of Business Research , 59(3), 322–330.; Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics , 68 3018-3025;Wilson, B. R. (2009). Indebted to Fair Trade? Coffee and Crisis in Nicaragua. Geoforum. </ref> The claim that Fairtrade ‘Fairtrade guarantees a fair price for the producer’ is not supported by the evidence.
 
 
There have been very few attempts at [[Fair trade impact studies]]. It would be methodologically and logically incorrect to use these attempts to conclude that Fairtrade in general does or does not have a positive impact. <ref> Griffiths, Peter, ‘Lack of rigour in defending Fairtrade: a reply to Alistair Smith, Economic Affairs 30 (2) 40-96, June 2010 Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm
 
</ref> Griffiths (2011)<ref> Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011(DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm</ref> argues that few of these attempts meet the normal standards for an impact study, such as comparing the before and after situation, having meaningful control groups, allowing for the fact that Fairtrade recruits farmers who are already better off, allowing for the fact that a Fairtrade cooperative receives aid from a dozen other organizations – Government Departments, Aid Agencies, donor countries, and NGOs, and allowing for the fact that Fairtrade may harm other farmers. Serious methodological problems arise in sampling, in comparing prices, and from the fact that the social projects of Fairtrade do not usually aim to produce economic benefits.
 
 
One reason for low prices is that Fairtrade imposes an inefficient marketing system. Farmers are forced to sell through a monopsonist cooperative, which may be inefficient or corrupt – certainly some private traders are more efficient than some cooperatives. They cannot choose the buyer who offers the best price, or switch when their cooperative is going bankrupt.<ref> Mendoza, R., & J. Bastiaensen, J. (2003). Fair Trade and the Coffee Crisis in the Nicaraguan Segovias. Small Enterprise Development , 14(2), p. 42. </ref> There are also complaints that Fairtrade deviates from the free market ideal of some economists. Brink calls fair trade a "misguided attempt to make up for market failures" encouraging market inefficiencies and overproduction.<ref>Brink, Lindsey. (2004). [http://www.adamsmith.org/pdf/groundsforcomplaint.pdf Grounds for Complaint]. URL accessed on September 25, 2006.</ref>
 
 
Low prices may also occur because the Fair Trade marketing system provides more opportunities for corruption than the normal marketing system, and less possibility of, or incentive for, controlling it. Corruption has been noted in false labelling of coffee as Fairtrade by retailers and by packers in the developing countries<ref> Weitzman, H. (2006, September 8). The bitter cost of ‘Fair Trade’ coffee. Financial Times .</ref>, paying exporters less than the Fairtrade price for Fairtrade coffee (kickbacks)<ref>Raynolds, L. T. (2009). Mainstreaming Fair Trade Coffee: from Partnership to Traceability. World Development , 37 (6) p. 1089);Valkila, J., Haaparanta, P., & Niemi, N. (2010). Empowering Coffee Traders? The Coffee Value Chain from Nicaraguan Fair Trade Farmers to Finnish Consumers. Journal of Business Ethics , 97: p264; Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics , 68 3018-3025. </ref> failure to provide the credit and other services specified<ref> Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics , 86:3-26; Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics , 68 pp. 3022-3); Barrientos, S., Conroy, M. E., & Jones, E. (2007). Northern Social Movements and Fair Trade. In L. Raynolds, D. D. Murray, & J. Wilkinson, Fair Trade: The Challenges of Transforming Globalization (pp. 51–62). London and New York: Routledge.; Mendoza, R. (2000). The hierarchical legacy in coffee commodity chains. In R. Ruben, & J. Bastiaensen, Rural development in Central America. New York: St. Martin’s Press, p.34–9; Mendoza, R., & J. Bastiaensen, J. (2003). Fair Trade and the Coffee Crisis in the Nicaraguan Segovias. Small Enterprise Development , 14(2), p. 42; Moore, G., Gibbon, J., & Slack, R. (2006). The mainstreaming of Fair Trade: a macromarketing perspective. Journal of Strategic Marketing , 14 329-352; Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics , 86: p. 12). </ref> theft or preferential treatment for ruling elites of cooperatives <ref>; Mendoza, R., & J. Bastiaensen, J. (2003). Fair Trade and the Coffee Crisis in the Nicaraguan Segovias. Small Enterprise Development , 14(2), 36–46; Berndt, C. E. (2007). Is Fair Trade in coffee production fair and useful? Evidence from Costa Rica and Guatemala and implications for policy. Washington DC.: Mercatus 65 Policy Series, Policy Comment 11, Mercatus Centre, George Mason University) </ref> not paying laborers the specified minimum wage <ref> Weitzman, H. (2006, September 8). The bitter cost of ‘Fair Trade’ coffee. Financial Times; Weitzman, H. (2006, September 9). ‘'Ethical-coffee’ workers paid below legal minimum. Financial Times ; Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics , 68 p. 3023)</ref>
 
 
A common criticism is that Fairtrade helps the rich rather than the poorest farmers. Fairtrade is profitable for traders in rich countries.It is also aimed at richer farmers. In order to join Fairtrade, cooperatives must meet quality and political standards which means their farmers must be relatively skilful, educated and well capitalized, and critics point out that these farmers are, therefore, far from the poorest farmers. The majority of Fairtrade suppliers are in the higher income or middle income Third World countries, such as Costa Rica and Mexico, with relatively few in the poorest countries. Mexico has 70 times the GNP per head of Sierra Leone. The minimum wage of agricultural workers in Peru is $3 a day and the average income of Fairtrade farmers in Bolivia was US$900/year, very much higher than normal agricultural incomes in Africa and much of Asia. Again, critics say this is diverting money from the poorest farmers.<ref> Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011(DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm</ref>
 
 
Critics argue that Fairtrade harms all non-Fairtrade farmers. Fairtrade claims that its farmers are paid higher prices and are given special advice on increasing yields and quality. Economists<ref>e.g.Griffiths, P. (2008) ‘Why Fairtrade Isn’t Fair’, Prospect, August Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm; Booth, P. and L. Whetstone (2007) ‘Half a Cheer for Fair Trade’, Economic Affairs, 27, 2, 29–36; Sidwell, M. (2008) Unfair Trade, London: Adam Smith Institute.; Brink, Lindsey. (2004). [http://www.adamsmith.org/pdf/groundsforcomplaint.pdf Grounds for Complaint]. URL accessed on September 25, 2006.; Harford, T: "The Undercover Economist.", 2005]] cite web | title = Markets, poverty, and Fair Trade | author = Sam Bowman | date = 11 March 2011 | url = http://www.adamsmith.org/blog/tax-and-economy/markets,-poverty,-and-fair-trade/ | publisher = [[Adam Smith Institute]] | accessdate = 2011-09-30 }};name="economist">{{ cite journal | journal = The Economist | date = Dec 7th 2006 | url = http://www.economist.com/business/displaystory.cfm?story_id=8380592 | title = Voting with your trolley }}</ref> state that, if this is indeed so, Fairtrade farmers will increase production. As the demand for coffee is highly inelastic, a small increase in supply means a large fall in market price, so perhaps a million Fairtrade farmers get a higher price and 24 million others get a substantially lower price. Critics quote the example of farmers in Vietnam being paid over the world price in the 1980s, planting lots of coffee, then flooding the world market in the 1990s. The Fairtrade minimum price means that when the world market price collapses, it is the non-Fairtrade farmers, particularly the poorest, who have to cut down their coffee trees. This argument is supported by mainstream economists, not just free marketers.
 
This argument falls away if, as critics and FLO state, farmers do not get a higher price.
 
 
Fairtrade supporters boast of ‘The Honeypot Effect’ – that cooperatives which become Fairtrade members then attract additional aid from other NGO charities, government and international donors as a result of their membership. <ref>e.g. Utting, K. (2009). Assessing the impact of Fair Trade Coffee: Towards an Integrative Framework. Journal of Business Ethics , 86:127-149. p. 141). ; Murray, D., Raynolds, L., & Taylor, P. (2003). One cup at a time: Poverty alleviation and Fair Trade coffee in Latin America. Colorado State University; Luetchford P (2006). Brokering Fairtrade: relations between coffee producers and Alternative Trade Organizations - a view from Costa Rica' in D. Lewis and D. Mosse (eds), Development Brokers and Translators: the Ethnography of Aid and Agencies, Kumarian Press, Bloomfield; CT Ronchi, L (2002a). The Impact of Fairtrade on Producers and their Organisations. A Case Study with COOCAFE in Costa Rica; Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap? Ecological Economics , 68 p. 3024 </ref>. Typically there are now six to twelve other donors. Critics point out that this inevitably means that resources are being removed from other, poorer, farmers. It also makes it impossible to argue that any positive or negative changes in the living standards of farmers are due to Fairtrade rather than to one of the other donors.
 
 
The failure to disclose this may be not just unethical but criminal. Under EU law (Directive 2005/29/EC on Unfair Commercial Practices) the criminal offence of Unfair Trading is committed if (a) ‘it contains false information and is therefore untruthful or in any way, including overall presentation, deceives or is likely to deceive the average consumer, even if the information is factually correct’, (b) ‘it omits material information that the average consumer needs . . . and thereby causes or is likely to cause the average consumer to take a transactional decision that he would not have taken otherwise’ or (c) ‘fails to identify the commercial intent of the commercial practice . . . [which] causes or is likely to cause the average consumer to take a transactional decision that he would not have taken otherwise.’ Griffiths (2011) <ref> Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011 (DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm</ref> points to false claims that Fairtrade producers get higher prices, the almost universal failure to disclose the extra price charged for Fairtrade products, to disclose how much of this actually reaches the Third World, to disclose what this is spent on in the Third World, to disclose how much, if any, reaches farmers, and to disclose the harm that Fairtrade does to non-Fairtrade farmers. He also points to the failure to disclose when ‘the primary commercial intent’ is to make money for retailers and distributors in rich countries.
 
 
The Fairtrade criteria are essentially political, and critics state that it is unethical to bribe Third World producers to adopt a set of political views that they may not agree with, and the donors providing the money may not agree with. In addition many of the failures of Fairtrade derive from these political views, such as the unorthodox marketing system imposed.<ref> e.g. Booth, Philip "Don’t bully the faithful into buying Fairtrade", The Catholic Herald, 20 February 2009; Booth, P. and L. Whetstone (2007) ‘Half a Cheer for Fair Trade’, Economic Affairs, 27, 2, 29–36; Griffiths, P., ‘Ethical objections to Fairtrade’ Journal of Business Ethics July 2011 (DOI) 10.1007/s10551-011-0972-0 www.springerlink.com Accessed at http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm;</ref> Boersma (2002, 2009) <ref> Boersma, F. (2009). The urgency and necessity of a different type of market: the perspective of producers organized within the Fair Trade market. Journal of Business Ethics , 86:51-61; Boersma, F. V. (2002). Poverty Alleviation through Participation in Fair Trade Coffee Networks: The Case of UCIRI, Oaxaca, Mexico. Retrieved from http://www.colostate.edu/Depts/Sociology/FairTradeResearchGroup.</ref> the founder of Fairtrade, and like minded people<ref> e.g. Audebrand, L., & Pauchant, T. (2009). Can the Fair Trade Movement enrich Traditional Business Ethics? An Historical Study of its founders in Mexico. Journal of Business Ethics , 87:343-353; Gendron, C., V., B., & Rance, A. (2009). The institutionalization of Fair Trade: more than just a degraded form of social action. Journal of Business Ethics , 86:63-79; Reed, D. (2009). What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective. Journal of Business Ethics , 86:3-26; McMurtry, J. (2009). Ethical Value-Added: Fair Trade and the Case of Cafe Fenenino. Journal of Business Ethics , 86:27-49. </ref> are aiming at a new, non-capitalist way of running the market and the economy. This may not tie in with the objectives of producers, consumers, importers or retailers.
 
 
Booth says that the selling techniques used by some sellers and some supporters of Fairtrade are bullying, misleading and unethical.<ref> Booth, Philip "Don’t bully the faithful into buying Fairtrade", The Catholic Herald, 20 February 2009; Booth, P. and L. Whetstone (2007) ‘Half a Cheer for Fair Trade’, Economic Affairs, 27, 2, 29–36; Booth, P. (2008). The Economics of Fairtrade: a Christian perspective. London: Institute of Economic Affairs http://www.iea.org.uk/record.jsp?type=book&ID=437; </ref> There are problems with the use of boycott campaigns and other pressure to force sellers to stock a product they think ethically suspect. However, the opposite has been argued, that a more participatory and multi-stakeholder approach to auditing might improve the quality of the process.<ref>[http://www.ntd.co.uk/idsbookshop/details.asp?id=807]</ref>
 
Some people argue that these practices are justifiable: that strategic use of labeling may help embarrass (or encourage) major suppliers into changing their practices. They may make transparent corporate vulnerabilities that activists can exploit. Or they may encourage ordinary people to get involved with broader projects of social change.<ref>{{cite journal | author = Julie Guthman | year = 2007 | journal = Antipode | title = The Polanyian Way? Voluntary Food Labels as Neoliberal Governance | volume = 39 | number = 3 | pages = 456–478 | doi = 10.1111/j.1467-8330.2007.00535.x }}</ref>
 
 
There are complaints that the standards are inappropriate and may harm producers, sometimes imposing months of additional work for little return.<ref>Utting-Chamorro, K. (2005). Does Fairtrade make a difference? The case of small coffee producers in Nicaragua. Development in Practice, , 15(3,4).; Moberg M (2005). “Fairtrade and Eastern Caribbean Banana Farmers: Rhetoric and Reality in the Anti-Globalization Movement.” Human Organization 64:4-16, Cited in Nelson and Pound (2009) p 10.; Valkila, J.: 2009, ‘Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap?’ Ecological Economics, 68, p. 3023) Fraser (2009) cited in Griffiths, P. (2012), “Ethical Objections to Fairtrade”, Journal of Business Ethics (2012) 105:357–373 DOI 10.1007/s10551-011-0972-0 http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm, Accessed 2 February 2012</ref>
 
 
There have been claims that adherence to fair trade standards by producers has been poor and that enforcement of standards by Fairtrade is very weak, notably by Christian Jacquiau<ref>Hamel, I.: 2006, ‘Fairtrade Firm Accused of Foul Play’, Swiss Info http://www.swissinfo.ch/eng/Fair_trade_firm_accused_of_foul_play.html?cid=5351232 23/12/2009.</ref> and by Paola Ghillani, who spent four years as president of Fairtrade Labelling Organizations<ref> Hamel, I.: 2006, ‘Fairtrade Firm Accused of Foul Play’, Swiss Info http://www.swissinfo.ch/eng/Fair_trade_firm_accused_of_foul_play.html?cid=5351232 23/12/2009.</ref> There are many complaints of poor enforcement problems: labourers on Fairtrade farms in Peru are paid less than the minimum wage<ref>Weitzman, H. (2006, August 9). ‘Fair’ coffee workers paid below minimum wage. Financial Times;Weitzman, H. (2006, September 9). ‘'Ethical-coffee’ workers paid below legal minimum. Financial Times. </ref>; some non-Fairtrade coffee is sold as Fairtrade<ref>Weitzman, H.: 2006, The bitter cost of ‘Fair Trade’ coffee. Financial Times, September 8.</ref> ‘the standards are not very strict in the case of seasonally hired labour in coffee production.’<ref> Valkila, J.: 2009, ‘Fair Trade organic coffee production in Nicaragua - Sustainable development or a poverty trap?’ Ecological Economics, 68, 3018-3025.</ref> ‘some fair trade standards are not strictly enforced’<ref> Reed, D.: 2009, ‘What do Corporations have to do with Fair Trade? Positive and normative analysis from a value chain perspective’, Journal of Business Ethics, 86, 3-26. p. 12</ref> supermarkets avoid their responsibility.<ref>Moore, G., Gibbon, J., & Slack, R.: 2006, ‘The mainstreaming of Fair Trade: a macromarketing perspective’, Journal of Strategic Marketing, 14, 329-352. </ref> In 2006, a ''[[Financial Times]]'' journalist found that ten out of ten mills visited had sold uncertified coffee to co-operatives as certified. It reported that "The FT was also handed evidence of at least one coffee association that received Fairtrade certification despite illegally growing some 20 per cent of its coffee in protected national forest land.<ref>"ref name="ft.com">{{cite web |url=http://www.ft.com/cms/s/2/d191adbc-3f4d-11db-a37c-0000779e2340.html |title=FT.com / Americas - The bitter cost of 'fair trade' coffee |work= |accessdate=}}</ref>
 
A lot of volunteers do unpaid work for firms, or market Fairtrade in schools, universities, local governments or parliament. Crane and Davies’<ref>Crane, A., & Davies, I. A. (2003). Ethical Decision Making in Fair Trade Companies. Journal of Business Ethics , 45: 79–92. </ref> study shows that distributors in developed countries make ‘considerable use of unpaid volunteer workers for routine tasks, many of whom seemed to be under the (false) impression that they were helping out a charity.’ Other critics in the [[Fair trade debate]] claim that the volunteers cannot know what Fairtrade does achieve and what harm it does, because the information is concealed from them. <ref>Griffiths, P. (2012), “Ethical Objections to Fairtrade”, Journal of Business Ethics (2012) 105:357–373 DOI 10.1007/s10551-011-0972-0 http://www.griffithsspeaker.com/Fairtrade/why_fair_trade_isn.htm, Accessed 2 February 2012</ref>
 
 
Segments of the [[trade justice]] movement have also criticized fair trade in the past years for allegedly focusing too much on individual small producer groups while stopping short of advocating immediate trade policy changes that would have a larger impact on disadvantaged producers' lives. [[France|French]] author and [[Radio France Internationale|RFI]] correspondent [[Jean-Pierre Boris]] championed this view in his [[2005]] book ''Commerce inéquitable''.<ref>Boris, Jean-Pierre. (2005). Commerce inéquitable. Hachette Littératures. Paris.</ref>
 
 
There have been largely political criticisms of Fairtrade, both from the left and the right. Some believe the fair trade system is not radical enough. [[France|French]] author Christian Jacquiau, in his book ''Les coulisses du commerce équitable'', calls for stricter fair trade standards and criticizes the fair trade movement for working within the current system (i.e. partnerships with mass retailers, [[multinational corporation]]s etc.) rather than establishing a new fairer, fully autonomous trading system. Jacquiau is also a staunch supporter of significantly higher fair trade prices in order to maximize the impact, as most producers only sell a portion of their crop under fair trade terms.<ref>Jacquiau, Christian. (2006). Les Coulisses du Commerce Équitable. Éditions Mille et Une Nuits. Paris.</ref> It has been argued that the approach of the FairTrade system is too rooted in a Northern consumerist view of justice which Southern producers do not participate in setting. "A key issue is therefore to make explicit who possesses the power to define the terms of Fairtrade, that is who possesses the power to determine the need of an ethic in the first instance, and subsequently command a particular ethical vision as the truth."<ref>Catherine S. Dolan (2008), ''Research in Economic Anthropology'', "Arbitrating risk through moral values: the case of Kenyan fairtrade", Volume 28, Pages 271-296</ref> Some of the criticisms of Fairtrade from the free market approach to economics appear to be linked to right wing political approaches, but this does not mean that their analysis in this particular case is unacceptable to mainstream economists.
 
 
 
== History ==
 
== History ==
 
<!-- Image with inadequate rationale removed: [[image:Oldftlogos2.jpg|thumb|left|Early Fairtrade Certifications Marks]] -->Fairtrade labelled [[coffee]], the first [[Fairtrade labelling|Fairtrade labelled]] product, was first launched in the [[Netherlands]] in 1988. The label, launched by [[Nico Roozen]] and Dutch missionary [[Frans van der Hoff]], was then called [[Max Havelaar]] after a fictional Dutch character who opposed the exploitation of coffee pickers in Dutch colonies. Fairtrade labelling allowed Fairtrade Certified goods to be sold outside the [[World shops]] for the first time and into mainstream retailers, reaching a larger consumer segment and boosting sales significantly. The [[Fairtrade labelling|labeling initiative]] also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the farmers at the end of the [[supply chain]].<ref>Redfern A. & Snedker P. (2002) [http://www.ilo.org/dyn/empent/docs/F1057768373/WP30-2002.pdf Creating Market Opportunities for Small Enterprises: Experiences of the Fair Trade Movement]. International Labor Office. p7</ref>
 
<!-- Image with inadequate rationale removed: [[image:Oldftlogos2.jpg|thumb|left|Early Fairtrade Certifications Marks]] -->Fairtrade labelled [[coffee]], the first [[Fairtrade labelling|Fairtrade labelled]] product, was first launched in the [[Netherlands]] in 1988. The label, launched by [[Nico Roozen]] and Dutch missionary [[Frans van der Hoff]], was then called [[Max Havelaar]] after a fictional Dutch character who opposed the exploitation of coffee pickers in Dutch colonies. Fairtrade labelling allowed Fairtrade Certified goods to be sold outside the [[World shops]] for the first time and into mainstream retailers, reaching a larger consumer segment and boosting sales significantly. The [[Fairtrade labelling|labeling initiative]] also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the farmers at the end of the [[supply chain]].<ref>Redfern A. & Snedker P. (2002) [http://www.ilo.org/dyn/empent/docs/F1057768373/WP30-2002.pdf Creating Market Opportunities for Small Enterprises: Experiences of the Fair Trade Movement]. International Labor Office. p7</ref>
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Reporter: Anonymous (anonymous)
Date: Wednesday, the 14th of March 2012 at 01:46:59 AM
Status: Reported
Wednesday, the 14th of March 2012 at 01:46:59 AM #23919
Anonymous (anonymous)

Highlighted section doesn't seem to reflect the edit I did. The section i deleted was a repeat of another article, that had been copy/pasted into the article i edited. It was in the same area, but not at all relevant to the specific article. User Allens checked it, and reverted his initial warning.

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