Looking Behind the 'Fairtrade' Label (1/2)

Coffee drinkers are not the only ones willing to pay more for products marked with the words "Fairtrade" or "Fair Trade Certified." Fair-trade teas, bananas, nuts and other products are also available. Some people see it as an act of social responsibility to buy these products.

The movement began in Europe in the 1980. Activists wanted a way to guarantee" class="hjdict" word="guarantee" target=_blank>guarantee fair prices for small coffee producers in poor countries. A group called the Fairtrade Labelling Organizations International, or FLO, was established in 1997. Its responsibilities include setting prices as well as rules for working conditions and wages. Under fair trade rules, importers must give growers technical help and let growers borrow money from them.

Until 1989, an international agreement helped keep coffee prices level by governing the world supply. But then a free market agreement ended that. The supply of coffee grew higher than demand. Prices were low. Now, coffee prices are rising on the world market.

The European Parliament recognized the work of the Fairtrade movement with a resolution last year. But there were also calls to establish policies to protect the movement itself from abuses. These include growers failing to pay the required wages to their workers.