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The issue of fair trade has evolved in reaction to the perceived and real inequalities perpetuated by free trade between the developed world and developing countries. A commitment to trading goods and services without protectionist tariffs, with free access to markets and market information, and free movement of labour and capital has enabled developed nations to exploit their economically dominant position at the expense of developing nations, due to it impeding their development. Fair trade is an attempt to redress the balance by providing producers with a fair price for their goods; promoting environmental sustainability; providing access to international markets; encouraging long-term investment, community solidarity, the empowerment of women and a stronger business approach; as well as ensuring labour rights and facilitating better living conditions.[1]

A nineteenth-century proponent of free trade wrote every individualneither intends to promote the public interest, nor knows how much he is promoting ithe intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intentions'.[2] Few individuals, apart from the most die-hard of free trade advocates, would contend that unrestrained free trade between nations automatically results in social benefits for everyone. Developing countries are in a particularly vulnerable position, often dependent upon the patronage of developed nations who exploit them for their natural resources. In fact, the current fair trade movement was very much shaped by the hostility towards neo-imperialism demonstrated in the 1960s.[3] There are four main organisations committed to the fair trade cause, and come together under the acronym FINE. Its members have agreed that Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers'.[4]

So, how successful have fair trade initiatives been in improving the lives of people who produce goods such as coffee? Loraine Ronchi conducted a study to assess the impact over ten years that fair trade had had on the stakeholders of nine Costa Rican co-operatives. Some of the benefits of fair trade included protection from the volatility of the coffee market; enough proceeds to establish educational

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