The report, "Unfair Trade," issued by the right of centre policy think-tank the Adam Smith Institute argues the fair trade movement is an example of anti-corporate armchair activism that arose from a historical event - the coffee crisis of the 1990s - from which coffee prices have now recovered from. Author Marc Sidwell claims poverty is certainly a problem among farmers that must be addressed, but the fair trade system cannot do it. It exacerbates and perpetuates poverty by sustaining uncompetitive farmers from diversification and mechanization, depriving them a chance to improve their professional life. The report also says that the moral packaging is not a reliable mark of delicious coffee or food and it may in fact blind consumers to other ethical trading schemes that may be more advantageous to third-world farmers. Several fair trade organizations refuted the Adam Smith report,
accusing the institute of inaccuracies. Truth or dare? Photo: Fairtrade.org

Please click here to access the article. AP*
* Anna Porretta is a contributing editor for Foodforethought.

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