Improving the quality standards for international trade and increasing the public's awarenes off its health benefits may be the right solutions for tea's persistent oversupply and low price problem.

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Tea of all types - black, green, white and red (oolong) - originate from the warm-weather evergreen tree known as Camellia sinensis.  Global exports of tea were valued at almost $US 2 billion in 2005, of which China represented about 27 percent and India about 20 percent. The international market has had a persistent fundamental problem with oversupply and low prices, which is predicted to continue in the medium term.  Producers are hoping that recent research into the health benefits of tea consumption, which have been touted for thousands of years, will help to increase demand. The polyphenols present in tea, which bestow antioxidant properties, have been shown to possibly reduce the risk of cancer or lower cholesterol, for example.  Demand for labels indicating geographical origin, such as Darjeeling and Assam, has long been a characteristic of the market and is increasing at present. National governments are keen to maintain the intellectual property rights to these location names.

In the context of the oversupply problem, the use of the quality standard ISO 3720 has acquired growing importance and is being considered for adoption as a recognized minimum quality standard for international trade. The use of HACCP (Hazard Analysis & Critical Control Points) has also gained in significance with respect to tea exports. With regard to food safety, there are challenges for developing country exporters to comply with differing pesticide Maximum Residue Levels (or MRLs) established in importing countries. The harmonization of MRLs for tea on a global scale has also been under discussion.  Harmonization of organic certification requirements across importing countries would also help developing countries.

The demand for organic and fair-trade tea derives from the fact that tea production can have negative environmental consequences such as habitat and biodiversity loss from land use conversion to a monocrop production system. Erosion can also be a problem when hillside forests are cleared for tea production, until the plants are well established. Chemical inputs (pesticides and fertilizers) can contribute to eventual soil degradation and polluted runoff. Agro-chemicals kill microorganisms in the soil and can directly or indirectly affect human health.  The largest tea producer in the world, UNILEVER, developed a Sustainable Agriculture Initiative and is now working with the Rainforest Alliance, to certify that their tea is made in an environmentally and socially sustainable manner. Social standards are also at the core of the Ethical Trade Partnership which monitors working conditions on tea plantations for member companies.