After being in the market for more than a decade, TransFair today has in excess of 6,000 FT products available in 105 product categories including wine, fruit, chocolate, rice, flowers and garments. To San Francisco Chronicle Paul Rice, TransFair USA’s founder and CEO told he was inspired by the success of FT coffee in Europe and decided to organize a co-op of small coffee farmers in Nicaragua several years ago.

Rice informed during the inception, his co-op could gather the trust of just 24 “brave souls” who each gave it 10 bags of coffee on consignment. It sold for $1.26 per pound, and $1 went to the farmers, who were used to receiving only 10 cents per pound. His co-op comprises of about 3000 farmers today.

Jean-Francois Daniel, co-founder of the 2-year-old Fair Trade Spirits Company based in Paris who has similar background and experience like that of Rice said his distillery made Fair Vodka from quinoa, a grain grown by an association of 1,200 small, TransFair-certified farmers in the Bolivian Highlands. He claimed the daily wage for a non- FT quinoa farmer in Bolivia was $1 per day, but the FT quinoa farmers which his company worked with earned $2.80 per day.

Currently, the vodka is available at some stores and restaurants in California. Amanda Womack the general manager of Cask, the first San Francisco retailer to sell Fair Vodka acknowledged even at $35 per bottle, Fair was one of the less-expensive vodkas Cask sold through its store and website.

According to TransFair, the offering of spirits will not be confined to vodka but also will be coming out with berry and coffee liqueur and rum as well. Fair Goji, a goji berry liqueur made with FT sugar from the African nation of Malawi and Fair Café, a coffee liqueur made with FT coffee from Mexico are likely to hit the markets soon for consumers to give spiritual contribution to FT programs.

Toboc Trade News

The US Trade Representative Ron Kirk and the Economy Secretary of Mexico Gerardo Ruiz Mateos in a joint press meet held in Mexico declared the differences on the pilot program would be ironed out soon to facilitate trade between both countries.

Following the ban, Mexico as a retaliatory measure has slapped higher tariffs on 90 items worth $2.4bn of the US agricultural and industrial products from 40 states. During the meet, in regards to the trade tension, Mateos said with about $400bn a year in bilateral trade between both countries, there were bound to be some problems.

Last year’s ban which violated the NAFTA clause was enacted by blaming the Mexican truckers’ not adhering to the US safety standards. At that time, Mateos had argued despite about 46000 crossings during the 18 month old pilot program no noticeable accidents were being reported.

The annulment of the program is regarded as a token to an election promise, the NAFTA will be re-negotiated and modified to preserve the US jobs, by Obama to the labor unions who gave support to him in the 2008 presidential election. The US is estimated to have spent $500mn for the pilot program since its inception.

Kirk apprised that there was fundamental shift in the language of this year’s appropriation bill by removing the clause on cutting off the funding to the pilot program. Prior to the two-day visit to Mexico, he had stated that the US farmers, ranchers and other exporters that had been subject of the retaliation had made their displeasure known to the Congress, and so there was a sense of urgency to find a solution soon.

Toboc Trade News

However, the quick response from the Obama administration indicates that they are in no mood to strain the relationship with its neighbour. It was very evident in the words of Robert Gibbs, the White House press secretary while he said they did not want to create any barrier to the trade relations with Mexico especially in a time of economic crisis.

A week ago, Obama annulled the pilot programme that allowed the movement of some Mexican long-haul rigs or trucks through the US roads. Under NAFTA, in force since 1994, the Mexican trucks should be permitted to ply up to the north of the border as early as January 2000. But the Mexican vehicles are widely blamed for not complying with the safety standards of the US and also eating into the US truckers’ jobs.

Subsequently, Mateos rebutted the argument by stating that the Mexican trucks never violated safety norms despite there were about 46000 crossings during the 18 month old pilot programme as no noticeable accidents were being reported. Nonetheless, he further added that Mexico was open to talks and expressed confidence in resolving the issue soon.

It has been learned that Obama has instructed his officials concerned to have talks with Mexican officials to arrive at a solution as early as possible. The new tariff is likely to affect $2.4bn worth of American agricultural and industrial products from 40 states.

Nevertheless, the re-permission to the Mexican trucks are likely invite the ire of labour unions who gave support to Obama in the 2008 presidential election on a promise that NAFTA will be re-negotiated and modified to preserve the US jobs. The US is estimated to have spent $500mn for the pilot programme since its inception.

Toboc Trade News