Looking Behind the 'Fairtrade' Label (2/2)

Some economists criticize Fairtrade plans in general. They say the guaranteed prices are often higher than market prices. As a result, growers produce more, and too much supply can hurt growers who are not included in the plans. Coffee is the second most traded product on world markets after oil. And some of the finest coffees come from Ethiopia.

Now, Ethiopia wants to control the use of its specialty coffee names under trademark laws. The idea is to charge coffee sellers for the right to use those names.

The world's best known coffee seller, however, resisted the idea. But last week, after two days of talks, Ethiopia's Intellectual Property Office and the Starbucks Coffee Company released a joint statement. They said they look forward to signing an agreement this month.

Details are not yet final. But they say the agreement will recognize the importance of Ethiopia's specialty coffee names. After all, Starbucks Chairman Howard Schultz noted that Ethiopia is recognized as the historicbirthplace of coffee.