fair trade

I appreciate Pro taking the time to respond on this important topic. Pro's heart is certainly in the right place, however I don't feel like Pro really addressed my points from round 2. Regardless, I will address Pro's points in round 3:Firstly, Fair Trade is trade farmers can count on. Fair Trade is committed to strengthening direct partnerships between buyers and producers.This sounds great, but what does it mean? If farmers want something to count on, they should consider the free market. A truly sustainable producer does not need socialist intervention as advocated by the FLO. In economics, prices are set by a supply/demand curve [1]. Producers are willing to produce more when prices are higher while consumers will purchase less at a higher prices. These two opposing forces meet at the market clearing price. Artificial distortions in this process are not only unnecessary but disruptive. If prices are artificially raised, there will a tendency toward surplus which has downward pressure on prices. That is one reason the FLO spends so much of it's resources on marketing the FLO label. One of the interesting points made in Adam Smith paper [2] is that Fair Trade movement arose from the coffee crisis of the 1990's. Governments tried to fix this market through the International Coffee Agreement. The result was over-production and a crash in prices. These partnerships provide an avenue for buyers to purchase quality products from people they trust, and offer a sustainable and reliable way for farmers, artisans and their families to improve their livelihoodI agree that one of the functions of the FLO is essentially a food broker. This is an important function for farmers. All producers rely on brokers, logistics and other sources for the sale of their products. However, the FLO masquerades itself as a charitable organization and tends to put great emphasis on it's labeling program. The fact that the FLO puts so much emphasis on marketing it's label and so little emphasis on real agricultural development is an indication that their primary concern is not with producers. ThatFair Trade also means sustainable local economies. Fair Trade gives farmers and artisans control of their own future. They can build their own businesses, rather than working for a middle man, and the profits stay in their communities and go back into their businesses.There is really nothing magical about the FLO. As I've shown, they are effectively a middle man, a food broker. In addition, the labeling program effectively makes them a sort of pseudo-brand of product. I've also shown that the FLO adds very little profit for producers while at the same time impacting a fraction of the farmers in the countries they focus on. In fact, the FLO injects additional fees into the equation by charging packers of products a fee for the Fair Trade label. The FLO uses most of this fee money for marketing.Fair Trade also means what you buy matters. By choosing Fair Trade products, you are not only accessing high quality products, you are making a difference in the lives of the people who grow the food you eat and the goods you use.Is that not true of products I purchase from non-Fair Trade farmers? I've seen no real proof that the Fair Trade farmers deserve special treatment. While the FLO claims that they ensure no child or slave labor is used for farming, do they really follow up on this? Am I to believe that all or most non-Fair Trade farmers do use slave and child labor? Closing, Fair Trade connects you with other cultures. Fair Trade products are unique to the places they come from and the people who make them. Farmers and artisans are involved in the entire process, and Fair Trade products reflect the people and cultures they come from.Again, is this not true of non-Fair Trade products? In the coffee market, which is FLO's largest segment, Fair Trade products only make up five percent of the market [2]. Am I not helping the other 95% of farmers when I buy non-Fair Trade coffee?I thank Pro for this enlightening debate. However, I feel that Pro's arguments generally rely more on heart, hope and faith. I have shown that Fair Trade has little real impact on producers. In addition, true sustainability and success for producers in poor countries will more likely come from free market trade. [1] http://www.investopedia.com...[2] http://www.adamsmith.org...