You are here: > Home > Textile Handicrafts > Commercialization > Fair Trade

Fair Trade

The term Fair Trade encompasses a variety of practices that aim to incorporate ethical considerations into commercial activities. The considerations are inspired by values of justice, equity, solidarity, honesty and respect.

Fair Trade is a social movement that for over thirty years has developed commercial relations based on dialogue, transparency and mutual respect. It seeks to bring greater equality to international trade. Fair Trade contributes to sustainable development, especially in southern countries, by allotting marginalized workers greater commercial benefits and ensuring their rights.

From the pioneering solidarity stores in northern Europe to the numerous fair trade importers now coordinated by IFAT (International Fair Trade Association) and other international associations, this movement has been repeatedly recognized and supported by diverse organizations. Over the years, a significant number of solidarity organizations, development organizations and producer cooperatives and collectives in the Southern Hemisphere have developed connections, forming a large web of exchange, mutual support and commercial possibilities.

At a global level, recognition of Fair Trade is reflected as much in the achievement of greater sensitivity and cooperation in the world as in fair trade organizations' achievements of commercial quotas, which in the last few years have grown in a sustained manner.

Diverse global organizations exist to support Fair Trade, including IFAT, FLO, NEWS, EFTA and FTF, and they have defined the Fair Trade movement as "an exchange based on dialog, transparency and respect, that is in search of more equitable international commerce and that contributes to sustainable development, offering better commercial conditions and ensuring the rights of the small producers and marginalized workers particularly in the Southern Hemisphere."

Fair Trade Organizations (also known as FTOs), supported by consumers, are actively committed to supporting producers and promoting the practice of fair trade through campaigns that create awareness and help to change the rules of conventional international trade.

IFAT, International Fair Trade Association

IFAT is the global network of Fair Trade Organizations, its membership consisting of around 300 organizations from 60 countries, with the number of members constantly increasing. Participating organizations include: cooperatives, associations, foundations, fair trade businesses located in both the Northern and Southern Hemispheres, importers, exporters, stores, national and regional fair trade networks, and organizations in support of FTOs. Approximately 65% of the members come from Asia, the Middle East, Africa and Latin America, while the rest come from Europe, North America and the Pacific.

The members of IFAT maintain the concept of fair trade as central to their mission; it is the basis of what they do. They participate in each link of the trade chain from production to sales; they are cooperatives of producers and associations, exporters, importers, retailers, national and international fair trade networks, financial institutions and other support organizations dedicated entirely to the fair trade movement. The members of IFAT commercialize a variety of products, such as gifts, home accessories, furniture, clothing, jewelry, food and drinks. Each of them adheres to IFAT's code of good practices, which was developed by its own members.

IFAT's mission is to contribute to improving the quality of life and well-being of small producers of the South as well as to promote and bring together fair trade organizations. In this way IFAT is making an impact on the path to greater justice in the commercial world.

There are four IFAT member organizations in Chile:

• Apicoop, Valdivia
• Comparte, Santiago www.comparte.cl
• Fundación Chol Chol, Temuco
• Fundación Solidaridad, Santiago www.fundacionsolidaridad.cl

Fundación Chol Chol and Fair Trade

The Fundación Chol Chol has been a member of IFAT since March 2005, and in July 2007, after going through an evaluation process, it was accredited by IFAT as a "Fair Trade Organization." This allows the Foundation to use the IFAT logo, an important element for promotion and identification.

This event marked a milestone in the constant process of evaluation required by IFAT, and it strongly reinforced the commercialization process of Mapuche textiles that the Fundación Chol Chol is undertaking.

Our work with rural, indigenous Mapuche women - the artisans who create the traditional Mapuche textiles - is based on respect and appreciation, as much of the women themselves as of their art. Our work is non-profit and provides management support, micro-credit, technical assistance and training. We promote the rural development of these artists, along with their families and communities, through the revival of their ancestral weaving techniques.

Fair Trade invites peace and development. As consumers we have the power to contribute to reducing poverty and protecting the environment. We can do so by supporting the Fair Trade movement. Today the movement is growing rapidly throughout the world. Why not do what we can to promote this further? Together we can build a more peaceful and equitable world.

Standards of Fair Trade

IFAT prescribes 10 standards that Fair Trade organizations must follow in their day-to-day work and carries out continuous monitoring to ensure these standards are upheld:

1. Creating opportunities for economically disadvantaged producers

Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

2. Transparency and accountability

Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.

3. Capacity building

Fair Trade is a means to develop producers’ independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.

4. Promoting Fair Trade

Fair Trade Organizations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organization, the products, and in what conditions they are made. They use honest advertising and marketing techniques and aim for the highest standards in product quality and packing.

5. Payment of a fair price

A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.

6. Gender Equity

Fair Trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.

7. Working conditions

Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.

8. Child Labour

Fair Trade Organizations respect the UN Convention on the Rights of the Child, as well as local laws and social norms in order to ensure that the participation of children in production processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play. Organizations working directly with informally organised producers disclose the involvement of children in production.

9. The environment

Fair Trade actively encourages better environmental practices and the application of responsible methods of production.

10. Trade Relations

Fair Trade Organizations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximise profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. Whenever possible producers are assisted with access to pre-harvest or pre-production advance payment.

The proceeding was taken from www.ifat.org, IFAT's website.