What is Fair Trade?

Fairtrade is a global movement that aims to establish fair and equitable trade relations through social practices and the exercise of values that allow a more direct relationship between producers and consumers (WFTO, 2011) is not measured ” both by physical distance but by the ethical proximity resulting in what can be called a ‘proximity economy’ despite the large geographical distances “(Cotera et.al, 2009: 20).

Read more about the history of fairtrade here.

Currently, the movement brings together about 3,000 farmers and workers organizations in more than 50 countries in South and its products are sold in many stores Just World (WFTO, 2011) Trade.

Fair Trade is defined as:

[…] a trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions and securing the rights of marginalized small producers and workers, especially in the South (WFTO, 2009).

From a Latin American perspective Fair Trade acquires new meanings and is understood as a form of structural change that allows humanizing the economy and addresses the problems of poverty, marginalization and injustice, it is not just a business relationship between North and South (Cotera, 2005), but acquires a territorial and local dimension that involves relationships between people.

10 Fair Trade principles established by the World Fair Trade Organization:

  • Payment of a fair price.
  • Transparency and accountability.
  • Commitment to non-discrimination, gender equality and freedom of association (union).
  • Promotion of Fair Trade.
  • Ensure good working conditions
  • Facilitate capacity development.
  • Respect for the environment.
  • Ensure absence of child labor and forced labor.
  • Capacity building.
  • Creating opportunities for economically disadvantaged producers.

The prize is awarded for sales under the fair trade system it is not defined by the market but by the economic situation of producers. Therefore, the price of a product cannot be unique in the world, in every country, in every region, but rather defined according to each situation. The only case in which you can set the price according to market price is when market prices are artificially high according to the Stock Exchange (cocoa and coffee, among others).