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Reuven Solomon




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    Reuven Solomon

    Fair Trade bad for free trade

    Fair Trade coffee is bad for free trade. Fair Trade is several things, first of which is an attempt by outside groups to place a price floor on coffee. Price floors keep more farmers in the business of coffee, on the hope that they will sell to a Fair Trade importer, perhaps impoverishing them more from staying in the coffee business when they should not. But what happens is that too much coffee bean is made with this attempted price floor, and big corporations win more by cheapened non-Fair Trade certified coffee.