Within the framework of the Workshop on market trends in fair trade, Corfo, in alliance with the Chilean Association for Fair Trade, the World Fair Trade Organization (WFTO), Fairtrade International and FAIR for LIFE, published the Fair Trade Catalog, with the objective of recognizing the trajectory and experience of 35 women and organizations who have opted for this marketing channel as a way to establish sustainable relationships at a productive and commercial level.
Based on the ten international criteria for this type of commercialization, the document highlights the collaborative and sustainable work of these business models, promoted by Chilean entrepreneurs , among which is Cordillerana 🙌🏻.
According to the agreement reached in 2001 by the main global fair trade networks, those organizations that want to adhere to this form of marketing must promote Opportunities for disadvantaged producers; Transparency and responsibility; Fair business practices; Fair payment; No to child labor and forced labor; No to discrimination, Gender equality and Freedom of association, among some.
“Encouraging the participation of women in our economy is a commitment to which Chile has subscribed and where there are still great challenges. Reducing the gender gap is urgent and through fair trade we can promote female economic independence. At Corfo, we are working to incorporate incentives to comply with gender equality standards in our calls, in order to encourage female entrepreneurship, which is essential for a more sustainable and inclusive reactivation”, Cecilia Valdés, Corporate Affairs Manager of Corfo.
Gender Equality is one of the 17 Sustainable Development Goals (SDGs), on which our country generated its Sustainable Development Agenda for 2030. In this way, some of the measures that seek to promote are equality and the empowerment of women, and promote those reforms that grant them the right to economic resources under conditions of equality.
Along these lines, Corfo has worked to make visible and strengthen inclusive, diverse and collaborative development spaces. These attributes are fundamental for the process of sustainable economic reactivation, taking the role of women in the construction of collaborative economies, where fair trade is one of the variables.
Presentation
Chile has signed the commitment to strengthen the participation of women in the economy, an obligation that contemplates great challenges with a view to achieving sustainable reactivation throughout the territory. Every form of exclusion, and gender exclusion in particular, constitutes a competitiveness gap that needs to be urgently eliminated. In that sense, today efforts are focused on promoting female economic independence. On the other hand, gender equality constitutes one of the 17 sustainable development objectives on which our country has committed constant work towards 2030, betting on development that safeguards the well-being of people and communities, the elimination of poverty and environmental sustainability, a space in which society has the opportunity to close gaps in various matters.
Fair trade, through its 10 principles, constitutes an opportunity to advance the sustainable development agenda. We must also take into account that gender equality is a common element in this initiative and that the issue calls for society transversally, not only as a competitive opportunity, but also as an ethical imperative, which sets the tone for the type of development. to which Chile aspires.
Along these lines, Corfo takes the opportunity to make visible and strengthen inclusive, diverse and collaborative development spaces, fundamental attributes of the economic reactivation process that lies ahead and to which it hopes to contribute through the recognition of the role of women in construction. of collaborative economy spaces.
Through this catalogue, prepared in conjunction with Gloria Moya Coloma, Regional Deputy Director of Corfo Metropolitano and member of the Corfo National Gender Network; and Marcia Machado, Corfo Gender Coordinator, the aim is to recognize the trajectory and experience of the different women and organizations that have opted to cultivate fair trade as a way of establishing sustainable relationships at a productive and commercial level and also highlight fair trade. as an interesting opportunity to respond to production and consumption patterns, in which increasingly, not only the product to be marketed matters, but also the conditions under which it travels through the value chain. Cecilia Valdés, Corporate Affairs Manager of Corfo
WHAT IS FAIR TRADE AND WHAT ARE THE PRINCIPLES OF FAIR TRADE?
In 2001, the main global networks of the fair trade movement agreed on the following definition:
“Fair trade is a commercial alliance based on dialogue, transparency and respect that seeks greater equity in international trade. “It contributes to sustainable development by offering better commercial conditions and guaranteeing the rights of marginalized producers and workers – especially in the South.” This text was agreed in 2001 by Fairtrade Labeling Organizations International (FLO), International Federation for Alternative Trade (IFAT), Network of World Shops (NEWS), and the European Fair Trade Association (EFTA). IFAT has been renamed the World Fair Trade Organization and includes the former organization NEWS within its membership.
Fair trade organisations, supported by consumers, are actively engaged in supporting producers, raising awareness and campaigning for changes to international trade rules and practices.
THE TEN INTERNATIONAL PRINCIPLES (http://comerciojusto.org/que-es-el-comercio-justo-2/los-10-principios-internacionales/)
The World Fair Trade Organization establishes 10 criteria that must be met by all organizations working in fair trade:
1 Opportunities for disadvantaged producers
2 Transparency and responsibility
3 Fair business practices
4 Fair payment
5 No to child labor. No to forced labor
6 No to discrimination. Gender equality. Freedom of association
7 Good working conditions
8 Capacity development
9 Promotion of fair trade
10 Respect for the environment
1. Creation of opportunities for economically disadvantaged producers
Poverty reduction through trade constitutes the fundamental part of the organization's objectives. This supports small marginalized producers, whether they are independent family businesses, or grouped in associations or cooperatives. Their goal is for them to move from poverty and income insecurity to economic and self-sufficiency. The organization has an action plan to carry it out.
2. Transparency and responsibility
The organization is transparent in its management and in its commercial relationships. It is responsible to all its stakeholders and respects the sensitivity and confidentiality of the commercial information provided to it. The organization finds appropriate and participatory means to involve employees, members and producers in its decision-making processes. Ensures that relevant information is provided to all of your
Business partners. Communication channels are good and open at all levels of the supply chain.
3. Fair business practices
The organization markets with concern for the social, economic and environmental well-being of small, marginalized producers and does not maximize its profits at their expense. He is responsible and professional in fulfilling his commitments in a timely manner. Suppliers respect contracts and deliver products on time and with the desired quality and specifications.
Fair trade buyers recognize the financial disadvantages that producers and suppliers face, ensuring that orders are paid upon receipt of documents and in accordance with the attached guidelines. A prepayment of at least 50% is made if requested. When fair trade suppliers receive a prepayment from buyers, they ensure that this payment is transferred to the producers or farmers who make or develop their fair trade products.
Buyers check with suppliers before canceling or rejecting orders.
When orders are canceled through no fault of the producers or suppliers, adequate compensation is guaranteed for the work already done. Suppliers and producers consult with buyers if there is a problem with delivery, and ensure that compensation is provided when qualities and quantities delivered do not match what was invoiced.
The organization maintains long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of fair trade. Maintains effective communication with business partners. The parties involved in the commercial relationship seek to increase the volume of trade between them and the value and diversity of their product offering as a means of growing fair trade for producers in order to increase their income. The organization works in cooperation with the other fair trade organizations in the country and avoids unfair competition. Avoid duplicating pattern designs from other organizations without permission.
Fair trade recognizes, promotes and protects the cultural identity and traditional skills of small producers as reflected in their artisanal designs, food products and other related services.
4. Payment of a fair price
A fair price is one that has been established by mutual agreement by all through dialogue and participation, which provides a fair payment to producers and can also be sustained by the market. Where fair trade pricing structures exist, these are used as a minimum. Fair pay means the provision of socially acceptable remuneration (in the local context) considered by the producers themselves to be fair, and which takes into account the principle of equal pay for equal work between women and men. Fair Trade Trade and Import organizations support capacity development as necessary for producers to enable them to set a fair price.
5. Ensure absence of child labor and forced labor
The organization adheres to the United Nations Convention on the Rights of the Child, and national/local law on the employment of children. The organization ensures that there is no forced labor in its workforce and/or members or home-based workers.
Organizations that purchase fair trade products from producer groups either directly or through intermediaries ensure that forced labor is not used in production and producers comply with the United Nations Convention on the Rights of the Child, and the national/local law on the employment of children. Any involvement of children in the production of fair trade items (including learning a traditional or artisanal art) is always communicated and monitored and does not negatively impact children's wellbeing, safety, educational requirements and need to play.
6. Commitment to non-discrimination, gender equality and freedom of association (union)
The organization does not discriminate in hiring, compensation, access to training, promotion, termination or retirement on the basis of race, caste, national origin, religion, disability, gender, sexual orientation, union
membership (union affiliation), political affiliation. HIV/AIDS, status or age. The organization provides opportunities for women and men to develop their skills and actively encourages applications from women for jobs and for leadership positions in the organization. The organization takes into account the special health and safety needs of pregnant women and nursing mothers. Women participate fully in decisions regarding the use of benefits resulting from the production process.
The organization respects the right of all employees to form associations and join unions of their choice and to bargain collectively. When the right to join unions and collective bargaining is restricted by law and/or the political environment, the organization will allow means of independent and free association and bargaining for employees. The organization ensures that employee representatives are not subject to discrimination in the workplace Organizations that work directly with producers ensure that women are always compensated for their contribution to the production process, and when women do the same work that men are paid the same rate as men. Organizations also seek to ensure that, in production situations where women's work is valued less than men's work, women's jobs
women are revalued to equal pay rates and women are allowed to carry out jobs according to their abilities.
7. Ensure good working conditions
The organization provides a safe and healthy work environment for employees and/or members. The organization complies, as a minimum, with national and local laws and ILO conventions on health and safety.
The hours of work and conditions for employees and/or members (and any homeworker) comply with the conditions established by national and local legislation and ILO conventions.
Fair trade organizations are aware of the health and safety conditions in the producer groups from whom they purchase. They seek, on an ongoing basis, to raise awareness about health and safety issues and improve health and safety practices in producer groups.
8. Facilitate capacity development
The organization aims to increase positive development effects for marginalized small producers through fair trade.
The organization develops the skills and capabilities of its own employees or members.
Organizations working directly with smallholder producers develop specific activities to help these producers improve their management skills, production capabilities and access to local, regional or international fair trade markets and mainstream markets, as appropriate.
Organizations that purchase fair trade products through fair trade intermediaries in the South assist these organizations to develop their capacity to support the marginalized producer groups with whom they work.
9. Promotion of fair trade
The organization raises awareness of the goal of fair trade and the need for greater justice in global trade through fair trade. Advocates fair trade objectives and activities within the scope of the organization. The organization offers its clients information about itself, the products it markets, and the producer organizations or partners that produce or harvest the products. Honest advertising and marketing techniques are always used.
10. Respect for the environment
Organizations that produce fair trade products maximize the use of raw materials from sustainably managed sources in their distribution areas, purchasing locally where possible. They use
production technologies that seek to reduce energy consumption and, where possible, technologies for the use of renewable energy that reduce greenhouse gas emissions to a minimum. They try to minimize the impact of their waste on the environment. Fair trade produce producers minimize their environmental impacts by using organic or low-pesticide use pesticides in production methods whenever possible.
Buyers and importers of fair trade products prioritize purchasing products made with raw materials that originate from sustainably managed sources, and have the lowest overall impact on the environment.
All organizations use recycled or easily biodegradable materials for packaging where possible, and products are shipped by sea where possible.
CONTRIBUTION OF FAIR TRADE TO SUSTAINABLE DEVELOPMENT
Today, the urgency of building a global alliance for sustainable development is becoming increasingly evident. This forces us to rethink both the daily actions of citizens, voters and consumers, as well as the rules of coexistence at the local, national, regional or global level. One of the movements that proposes rewriting these rules is fair trade. This, not through welfare, but through international trade in an equitable and supportive version, based on the search for sustainability in all its dimensions, considering another way of understanding production and consumption, with a multidimensional development approach that incorporates economic, social, environmental and political aspects.
In economic terms, fair trade promotes the payment of a fair price to producers, which covers a decent remuneration for work and the other costs of sustainable production. In the Fairtrade International system, minimum prices are set for most products, below which fair trade contracts cannot be made. Periodically, the different participants in the Fairtrade system review these prices, based on production cost studies that take into account the reality of producers. In this way, the impacts of ups and downs and constant fluctuations in raw material prices are softened. In addition to the Fairtrade minimum price, the payment of differentials for product quality is promoted.
The Fair for Life certification scheme requires that the prices paid are always at least 5% above the market price for products without an organic certificate and at least 10% higher for products with an organic certificate. Furthermore, they must respect the minimum price guaranteed to the producer at all times, even when the market price is below it. This minimum price is calculated based on production costs, guaranteeing a sustainable payment to the producer.
The payment of a social premium to workers' organizations or committees so that they can carry out social investments. This allows us to have resources for education, environmental protection, sanitation, health and housing,
among others, in the communities of belongings. In the case of organizations, investments in productivity or product quality can also be improved. All depending on the internal decisions that producers make democratically, thus responding to the needs and priorities of their families and communities.
Pre-financing that allows the buyer to advance between 50% and 60% of the final cost of the order. This responds to another clear market barrier that small producers still suffer: the lack of ease of access to convenient credit (Coscione, 2011a).
Regarding food security and sustainable agriculture, the challenge of productivity is a constant in all producer organizations, but also for buyers and for the movement in general. On the other hand, correcting trade distortions is also a historical objective of fair trade, but more complicated to achieve due to the offensive and defensive interests of many markets.
In social terms, meanwhile, fair trade promotes gender equality is another fundamental pillar of fair trade. Its goals include: ending all forms of discrimination against women and girls worldwide, ensuring the full and effective participation of women and equal leadership opportunities at all decision-making levels of political and economic life. and public; in addition to undertaking reforms that give women equal rights to economic resources.
Decent work is also directly related to fair trade. This is especially relevant as it seeks to eradicate forced labor, put an end to contemporary forms of slavery and human trafficking, and ensure the prohibition and elimination of child labor. This goal is directly linked to one of the fundamental principles of fair trade and one of the strategic lines of the work of CLAC (Latin American Coordinator
and the Caribbean of Small Fair Trade Producers and Workers) at the continental level.
Fairtrade criteria also seek to promote decent working conditions. These criteria guide private companies in promoting associativity and empowering the agricultural workers they employ.
Reducing inequality within and between countries is one of the key objectives of fair trade. The movement promotes greater balance in trade relations between North and South countries worldwide. Furthermore, the reduction of inequalities within the countries themselves is promoted.
In the second case, the fair trade effort has focused on reducing the following gaps:
• Between those who have and those who do not have opportunities and can take advantage of them.
• Between those who have and do not have access to markets, commercial strength and can negotiate prices or contractual conditions.
• Between those who meet the requirements of the conventional banking system, and can then have access to credit, and those who cannot.
• Between those who can finance research and implement new technologies, or can internalize the costs and risks of climate change, and those who cannot.
In the environmental area, for its part, fair trade seeks to guarantee sustainable consumption and production patterns, a purpose that is at the center of the movement's work, along with encouraging companies - especially large and transnational ones - to adopt sustainable practices. The initiative also seeks to promote public procurement practices that are sustainable and ensure that people around the world have the information and knowledge relevant to sustainable development and lifestyles in harmony with nature.
The company's own consumption must also be considered within the analysis of sustainable practices. With this, the traditional vision that focuses only on production along the value chain is expanded and companies are encouraged to become final consumers of fair trade products, changing their internal acquisition policies.
Fair trade also contributes to urgent measures to combat climate change and its effects. Global warming and the consequent climate changes are a reality and fair trade producers, as well as everyone else, have been suffering for several years from its serious consequences.
Fair trade standards also promote more efficient use of energy, soil, and natural and water resources. Furthermore, in Latin America and the Caribbean, producers are supported in their adaptation processes to climate change, while advocacy actions are developed to raise awareness among societies about the risks involved in not adequately serving food producers. .
In political terms, the movement helps to guarantee the adoption, at all levels, of participatory and representative decisions. The inclusion and effective collaboration of producers in commercial chains and in the processes of taking political and social measures are fundamental pillars of the movement.
Achieving sustainable development requires profound changes in consumption. It is not only about defending the rights of consumers at the time of purchase, the rights of vulnerable producers, often invisible at the time of purchases, must also be protected. The change in production and consumption patterns is not the responsibility of producers and consumers alone. For this change to be massive, it is relevant to promote, from the political sphere, important modifications in the economic, commercial and industrial systems.