What are the cons of fair trade?

Answer 1

While fair trade aims to promote ethical practices, it has several drawbacks. Critics argue that fair trade certification can lead to higher prices for consumers, which may limit market access for some producers. Additionally, the reliance on certification can create bureaucratic challenges and may not always guarantee that benefits reach the farmers, as middlemen can still exploit the system. Lastly, some question whether fair trade significantly impacts poverty reduction or if it merely provides a niche market for a select group of producers.