Fair Trade: Social regulation in global food markets

This article analyzes the theoretical and empirical parameters of social regulation in contemporary global food markets, focusing on the rapidly expanding Fair Trade initiative. Fair Trade seeks to transform North/South relations by fostering ethical consumption, producer empowerment, and certified commodity sales. This initiative joins an array of labor and environmental standard and certification systems which are often conceptualized as “private regulations” since they depend on the voluntary participation of firms. I argue that these new institutional arrangements are better understood as “social regulations” since they operate beyond the traditional bounds of private and public (corporate and state) domains and are animated by individual and collective actors. In the case of Fair Trade, I illuminate how relational and civic values are embedded in economic practices and institutions and how new quality assessments are promoted as much by social movement groups and loosely aligned consumers and producers as they are by market forces. This initiative's recent commercial success has deepened price competition and buyer control and eroded its traditional peasant base, yet it has simultaneously created new openings for progressive politics. The study reveals the complex and contested nature of social regulation in the global food market as movement efforts move beyond critique to institution building.

► Social regulation involves private and public domains and individual and collective actors.
► Fair Trade success deepens competition and buyer control and erodes peasant base.
► Growth in new areas creates opportunities for working with labor organizations.