Fair trade groups plan to acquire certification

CEBU, Philippines - Known to contribute to sustainable development for marginalized producers and their communities, fair trade groups are now geared towards acquiring certification to elevate themselves in the domestic and global markets.

World Fair Trade Organization – Global president Dr. Rudi Dalvai said that the fair trade certification defines the high quality standards of the product, thus gaining the loyalty of the consuming public to buy.

“It started twenty years ago when people who consumed fair trade products perceived that those that are certified are recommended. Producers were forced to certify or else, we cannot sell our products. This has been the trend at present,” he said.

Fair trade is defined as a trading partnership based on dialogue, transparency and respect that seek greater equity in international trade.

It contributes to sustainable development by offering better trading conditions and securing the rights of marginalized producers in developing countries. It further seeks to transform trading structures and practices in favor of the poor and disadvantaged by building trading partnerships based on equity and transparency.

Dalvai shared that fair trade products sold worldwide posted an annual sales turn-over of $5 million every year.

He, however, clarified that the fair trade certification is not mandatory among producers but is a voluntary choice since it entails costs for pre-audit, inspection, corrective and continuous improvement.

Its fees also include the payment for application, annual membership fees for the World Fair Trade Organization Philippines and Asia, logistics expenses, and audit fee.

Southern Partners and Fair Trade Center (SPFTC) president Geraldine Labradores said that once a producer organization or an enterprise is being accredited in the Philippine fair trade certification system, it bears the fair trade logo that demonstrates ad verifies that it implements fair trade practices.

In the Philippine fair trade market, there are four globally-recognized certifying bodies. There are five fair trade shops that are already certified in the country. These shops that bear the fair trade logo include those in Cebu, Cagayan de Oro, Bohol, Bicol, and General Santos.

“The Fair Trade Shop here in Cebu is already certified in the Philippines. We are going through the Global Fair Trade Guarantee System so we can be certified internationally. We want to let our consumers know there are standards and that we follow it,” Labradores stated.

The standards of a fair trade product are based on creating opportunities for economically disadvantaged producers, transparency and accountability, capacity building, promoting fair trade, payment of a fair price, gender equity, working conditions, child labor, the environment and trading relationships.

Once a fair trade group intends to be certified, it has to submit a letter of intent, furnish and review application form and list of documents to be submitted, and ask for additional documents if needed Review additional documents.

The certifying body shall conduct a physical visit in the fair trade shop for cross verification and audit proper. If proven that the producer has passed the standards, the auditor shall recommend it to the country office which will then be passed to the regional office that shall decide whether to accept or reject the application.

The audit process covers the initial meeting between the management and audit team, schedule presentation, document verification and interviews, consolidation and presentation of results.

Labradores cited that the certification earns the producer enterprise transparency, integrity, brand reputation, stakeholder perception, investment attraction and differentiation among other players.

“The fair trade logo provides the guarantee that the producer organization passed a formal audit process that has looked into their practices against a defined set of criteria that measures social, economic and environmental responsibility,” she explained.

She also clarified that the fair trade value is both linked to the product itself and the processes and relationships that goes with the creation and trading of the product.

She further noted that the Philippine fair trade groups have ventured into certification to increase awareness and practice of fair trade, promote human resource development and responsibility, develop social accountability and transparency and embark on continuous improvement and social development.

The Fair Trade Shop in Cebu is located at 102 Jose R. Martinez Bldg.in Osmeña Blvd, Cebu City. /JOB (FREEMAN)