¿Qué es el Comercio Justo?

What is fair trade?

Did you know that every time you decide on a piece from Cordillerana, such as delicate horsehair hoops, a colorful wool footpiece or a carved wooden set, you are supporting fair trade? Although you may not know it, choosing one of these products has great significance, as it means that you are helping to keep an artisan tradition that has been passed down for generations alive; you are supporting an inclusive business model that puts people and the environment above economic profits; You are buying a product behind which there is no child labor, forced labor or unsafe or undignified working conditions; and you are paying a price agreed upon with the artisan who made the piece you chose and that allows her to live with dignity from her work.

"Although Cordillerana and the artisans with whom it works have opted for fair trade, the success of this model depends largely on us, the consumers, who through our purchase validate how the products are harvested and made and choose who it benefits."

Although Cordillerana and the artisans with whom it works have opted for fair trade, the success of this model depends largely on us, the consumers, who through our purchase validate how the products are harvested and made and choose who benefits. By consciously using our power as consumers, we join those who fight for the same values ​​as us: a more equitable, supportive and sustainable world.

Chile has fair trade organizations, some of which have a long history, as is the case of small producers in the wine and beekeeping sector. However, the concept is still little known by the general public [1] . So that every day there are more of us who are motivated to be part of fair trade, it is important to know a little more about how it emerged, what it is about and why today it is perhaps more necessary than ever.

Some important points of fair trade

The economic model that currently governs the world has generated great development and wealth, however, it has failed to eliminate poverty and has increased levels of inequality between countries and individuals, especially in the southern hemisphere [2] . It is a model where economic benefits come before people and the planet, which is generating serious environmental problems, instability, conflicts, forced migrations, among many others.

In response to this model, the fair trade movement emerged in the second half of the 20th century, which maintains that the economy cannot be reduced only to economic profit, but must give priority to the needs of people and the planet. From a multidimensional approach, it proposes that the economy must consider economic, social, environmental and even political aspects and that it must seek “a more inclusive, fair and sustainable development” [3] . Fair trade, in other words, proposes a different way of doing business, based on solidarity, dialogue, respect and justice. One of the main objectives of the movement is to create development opportunities for small farmers, peasants and artisans, many of whom are currently at a disadvantage compared to the large international companies that dominate the markets [4] .

"Fair Trade, in other words, proposes a different way of doing business, based on solidarity, dialogue, respect and justice. One of the main objectives of the movement is to create development opportunities for small farmers, peasants and artisans , many of which are currently at a disadvantage compared to the large international companies that dominate the markets"

In the fair trade model, each of its components is part of a virtuous circle, within which everyone is called to participate in decision-making: small producers, farmers and artisans; organizations and cooperatives; the marketers and finally the consumers. Based on a fair price, agreed between the parties, profits are distributed in a fair and supportive manner, benefiting all members, guaranteeing decent work for the people who need it most and also promoting the sustainable management of resources. natural.

An example that illustrates this model is coffee, the most traded food product in the world: for a normal cup of coffee of $2,500, farmers receive $25. For the same cup of coffee of $2,500, but fair trade, farmers receive $125, that is five times more. The impact of choosing one cup of coffee over another is enormous and can make a big difference for farmers and their families. In addition, it has a number of other implications that are worth briefly mentioning.

Cordillerana Fair Trade

"...for a normal cup of coffee of $2,500, farmers receive $25. For the same cup of coffee of $2,500, but fair trade, farmers receive $125, that is, five times more"

The ten principles of fair trade

All organizations working in fair trade are governed by ten principles established by the World Fair Trade Organization (WFTO) [5] :

Principle 1. Creation of opportunities for small producers . Family businesses, independent businesses, associations or cooperatives receive fair income, which allows them to be self-sufficient and escape poverty.

Principle 2. Transparency and responsibility in the rendering of accounts . Business relationships are clear and open and decisions are made jointly. No one seeks to enrich themselves at the expense of others.

Principle 3. Fair trade practices to achieve social, economic and environmental well-being . If required, organizations prepay at least 50% interest-free for artisans and at least 50% with reasonable interest for food producers. Business relationships are long-term and are based on solidarity, trust, and mutual respect. This means that there is no relationship of domination towards suppliers, but instead it seeks to promote growth and protect the cultural identity of producers.

Principle 4. Payment of a fair price agreed upon by both parties . The remuneration that producers receive is acceptable according to the local context and considered fair according to their own criteria.

Principle 5. No to child labor and forced labor . Fair trade products have the guarantee that they have not been generated through forced or child labor. Any involvement of children, including learning a traditional craft or art, must respect the UN Rights of the Child.

Principle 6. Commitment to non-discrimination, gender equality and freedom of association. Fair trade guarantees non-discrimination based on ethnicity, social class, religion, disability, gender, sexual orientation, age or political affiliation. Men and women enjoy the same rights in hiring, salary and retirement. Additionally, the health and safety needs of pregnant and lactating women are considered. Free association in unions and groups is also respected.

Principle 7. Guarantee good working conditions. The organizations guarantee that work is carried out in a safe and healthy environment, complying at least with national and regional laws and the conventions of the International Labor Organization (ILO).

Principle 8. Capacity development. Organizations must develop the skills and capabilities of groups of producing people so that they can improve their skills, management capacity, production and market access.

Principle 9. Promotion of Fair Trade. Organizations must inform about the benefits and advantages of solidarity commerce, in order to raise awareness and promote its practice. Marketing and advertising techniques are always honest.

Principle 10. Respect for the environment. Fair trade products respect the environment: they use sustainable raw materials that are mainly purchased from local markets. The food does not contain pesticides or is only organic. The packaging is biodegradable or recyclable.

Cordillerana Fair Trade

Successes and challenges

Although fair trade and its certifications are not the perfect solution to current problems and much remains to be done, various studies have shown great successes. In 1999, OXFAM carried out a report on the impact of fair trade on 18 artisan groups in Latin America, Asia and Africa. The results confirmed that in the long term fair trade contributes to an increase in income, the empowerment of producers and an improvement in the living conditions of the communities [6] .

Finally, it is important to highlight that the fair trade movement is an important ally to achieve the Sustainable Development Goals (SDG) of the United Nations. Adopted in 2015, these 17 global commitments seek to end poverty by 2030, addressing inequality and promoting sustainable development. Fair trade and the SDGs share the vision of a sustainable world, in which people can escape poverty and have decent work, women enjoy equal rights and opportunities, and essential resources and ecosystems are not damaged. the Earth [7] .

Why conscious purchasing is so important

We all actively participate in the global economy. A large part of the products we buy every day, such as tea, coffee, sugar, chocolates, bananas or cotton, come from various parts of the world. A good example is chocolate. Most of us don't know where it comes from, how it was produced, much less how the profits are distributed. The problem is precisely that: approximately 2/3 of the world's cocoa originates in West Africa, where farmers earn less than 50 cents a day. Nearly 2 million children work on cocoa plantations doing the same work as adults: cutting with machetes, carrying bags and spraying pesticides. Despite complaints from international authorities, the large companies that dominate this market have not fulfilled their promise to eradicate child labor in the last 20 years [8] . Similar accusations have arisen in other areas, such as sporting goods and textile factories, in which workers - including children - are exploited, labor laws are not respected, among others [9] .

"For many artisans, fair trade has meant the possibility of being able to live with dignity from their work and keep alive the traditions and culture they inherited from their ancestors."

The good news is that something can be done about it: we can consciously choose fair trade products. Especially for the world of small artisans, our decision is fundamental, since many of the artisanal traditions that have been passed down for generations are in the process of disappearing. This is largely due to the fact that cheaper and faster ways to produce have been found, because it is increasingly difficult to find buyers who value the tradition and work behind each piece or because the income generated by craftsmanship does not allow for subsistence. For many artisans, fair trade has meant the possibility of being able to live with dignity from their work and keep alive the traditions and culture that they inherited from their ancestors.

“Our products are more valued thanks to Fair Trade, because from a piece of ceramic to a work of art, everything involves culture and dignity” Nancy Epulef, Mapuche artisan from the Chol Chol Foundation (Fair Trade organization, Chile) [10]


*This is the fifth in a series of articles and research dedicated to traditional crafts, the work of our great collaborator Christine Gleisner @christine_gv


[1] Marco Coscione and Nanno Mulder (editors) The contribution of fair trade to sustainable development ¸ Santiago and El Salvador, ECLAC and CLAC, 2017, p. 73.

[2] International Fair Trade Charter, 2018 . Available at: http://www.wfto-la.org/wp-content/uploads/2018/09/La-Carta-Internacional-de-Comercio-Justo.pdf

[3] Marco Coscione and Nanno Mulder (editors) The contribution of fair trade to sustainable development ¸ Santiago and El Salvador, ECLAC and CLAC, 2017, p. fifteen.

[4] Idem.

[5] The following points are taken and adapted from: WFTO-LA, The 10 Principles of Fair Trade , available at: http://www.wfto-la.org/comercio-justo/wfto/10-principios-comercio- fair/

[6] Spanish Foundation for the Innovation of Crafts, Fair Trade Guide for artisans in Latin America ¸ Madrid, 2011, p. 40.

[7] International Fair Trade Charter, 2018 . Available at: http://www.wfto-la.org/wp-content/uploads/2018/09/La-Carta-Internacional-de-Comercio-Justo.pdf

[8] In this regard, see the interesting report by Peter Whoriskey and Rachel Siegel on child labor on cocoa plantations in the Ivory Coast published by the Washington Post on June 5, 2019: https://www.washingtonpost. com/graphics/2019/business/hershey-nestle-mars-chocolate-child-labor-west-africa/

[9] The first major international scandal was the Life magazine report in 1996 that denounced the North American company Nike for employing children, some under six years old, who sewed soccer balls in Pakistan. In the world of fashion, international companies such as Zara and Mango are becoming involved in slave labor scandals in Brazil or the exploitation of Syrian refugees in textile factories in Turkey, reported by the BBC.

[10] Cited by Spanish Foundation for Crafts Innovation, Fair Trade Guide for artisans in Latin America ¸ Madrid, 2011, p. 3.

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