How fair is Fairtrade?: an evaluation of the Fairtrade movement in 2013

Abstract

The Fairtrade Foundation was founded in England in 1992 as a charity designed to raise awareness of the exploitation of farmers from the third world. This article will examine the Fairtrade model and analyse the labelling system which was introduced in the late 1980s in Holland and established in the UK in 1992. The concept of Fairtrade is explained and the processes of how individuals and businesses work with the Fairtrade Foundation are explained. This article explores how Fairtrade has expanded over the last two decades and evaluates if it is still benefitting producers in developing countries in 2013. Fairtrade has generated a fierce debate between its critics who accuse it of losing sight of their aims as they look to expand while its advocates continue to support it strongly. This paper concludes that Fairtrade should only be considered as an interim measure for the progression of establishing 'Fair trade principles' throughout the globe, as it does not represent a 'perfect solution'.

Key words: Ethical marketing; certification; producers; sustainability; free trade.