The narrowness of the system favours Latin America over Africa and Asia and is beyond the reach of many developing countries

The unequal distribution of the gains of Fairtrade (FT) derives in a large part from the characteristics of certification. The certification system presents a twofold bias against the poorest developing countries. First, there are considerations related to the costs of certification. These being the same everywhere, they are relatively more expensive for the most disadvantaged countries, all other things being equal. Then, due to its sliding-scale price structure, certification is less costly for large producer organisations than for smaller ones. Finally, the cost of compliance with FT standards (changes in agricultural and administrative practices that often lead to an increase in working hours) is higher for small organisations due to their lower productivity and lower economies of scale. (Read More)

This is an edited extract from The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Samba Sylla, published by Pluto Press