Does Fair Trade Pose Domestic and International Drawbacks?

We look at two aspects of trade to draw examples aimed at addressing the above question, namely: (a) Trade from an international and global perspective, and (b) Domestic trade and the prevalence of price distortions and loss of efficiency gains resulting from coerced participation of individuals in markets, an unleveled playing field, and subordinated participation and lack of representation in market transactions. From an international and global trade perspective, we highlight the prevalence of distortions in relative prices and asymmetric trade due in part to the unwillingness of developed and a few large developing countries to remove subsidies and other artificial trade barriers on their domestic agriculture and mineral production. From the domestic trade front, differences in planning horizons, location and distance to markets, the rise of intermediaries in markets, especially cash crops and handicrafts, and peculiar patronized relationships between land owners and peasants are arguably a few of the most widely discussed explanations behind the neglect to reward the individual or community's going opportunity cost.