Know-How Exchange : Branding

Dear All,

I am doing marketing for a non-profit, fair trade, handcraft exporting company in South America. It has proven to be a difficult process. Our artisans are not usually able to produce enough product to supply larger gift and home decor stores like Pier 1 Imports, but small orders are not feasible either due to large shipping costs from here. It has been hard to find that middle road.

Another large problem is that we are based in Chile, the most stable country in Latin America, both economically and politically. This means that our products cost a lot more than fair trade products from Peru, Mexico, China, or India for example. Though fair trade buyers are interested in just trade they still consider price. How do I add value to our product in an effort to take the price issue out of the picture.
Also, any suggestions for catching the attention of the commercial market. In order to support our artisans we can not rely solely on the fair trade market.
How do I create more awareness about Chile itself. Compared to other countries in the area people know relatively little about it. Unlike Mexico which brings a ton of feelings and associations with it, Chile really only brings up Pinochet and the Andes!

Thanks so much for any suggestions!
Oh by the way, we have hardly any budget for advertising, etc...

Simone