Summary In the context of globalization and policies to promote free trade on an international scale, this paper discusses what has happened to artisans in Quito, Ecuador, over the past 30 years. The trends of conservation and decline have not been uniform over time and they have not affected all micro-firms in the same way. There has been a long-term process of restructuring and decline of these producers and they have clearly suffered from national and international free trade policies. This has resulted in levels of alienation, xenophobia and racism that are likely to have negative political consequences.