I went to a debate entitled “Fairtrade is a moral obligation as it supports producers in developing countries” at King’s College this evening. Heading the proponents was Liz Dodd of Trade Craft Association whilst Dr Madsen Pirie, Director of the Adam Smith Institute, led the opponents.

The proponents argued that Fairtrade helps lift farmers in developing countries out of poverty by raising their income and helping them develop in order to bring about sustainable improvements. The opponents mirrored the arguments presented recently in The Economist, that prices of such commodities are too low because of overproduction and Fairtrade encourages more production – the opposite of what the market needs.

Whilst neither set of speakers were particularly compelling, one statistic did grab my attention: A typical cow in the European Union receives a government subsidy of over $2 a day. The average person in sub-Saharan Africa lives on less than $1 per day. I suspect the abolition of the Common Agricultural Policy could achieve more to reduce poverty in developing countries than Fairtrade ever could.