WFTO-Asia

The WFTO GSFair Trade

WFTO & WFTO-Asia

August 6th 2015

Christine Gent WFTO-Asia director@wfto.com

AgendaTime Session details

8.30-9.15 AM Expectations and review of agenda Introduction to the workshop, expression of aims of the workshop, logistics Introductions of participants by other participants Analyse expectations, amend and approve the agenda

9.15-9.45 Fair Trade & WFTO Update Fair Trade the movement Fair Trade in Cambodia Discussion of Fair Trade activities within the present groups Benefits of Fair Trade

9.45-10.30 AM Ten Principles of Fair Trade Practical session The ten principles of Fair Trade their application and translation to local

language and context

TEA BREAK 10.30 to 11.0011.00-12.00 WFTO Guarantee System

Initial requirements and documents for membership, including costs and IMS

12.00 – 12.15 PM Promotion of Fair Trade

12.15 -12.30 Final Questions and Closure

4

The global FAIR TRADE definition

Fair Trade is 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 to, and securing the rights of, small and marginalized producers and workers – especially in the South.

Environment

Financial

SocialSustainable The product lifecycle

Carbon useCradle to grave Reuse DisposalEnergy Use

CSR – Living Wage Local EmploymentFair TradeIntegration Enterprises

A bottom line that covers costs including Fair Wages, and also allows for business expansion and investment

What is Sustainable Development

Fair Trade Organizations (backed

by consumers) are engaged actively in

supporting producers, awareness raising and in campaigning for changes

in the rules and practice of conventional international

trade. by FINE 2001

6

The global FAIR TRADE definition

Fair Trade

What is a Fair Trade Organization? • Income from trade • Social objectives to work with the marginalized

at the heart of the activities“commitment to improve the social and economic conditions of marginalized producers and suppliers.”

• Follow the ten principles of Fair Trade• No one type of organization• Not based around any one product or one

product standard, all the products are Fair Trade

• Formal and informal production

World Fair Trade Organisation

10

Founded in 1987

The only global platform made out of members of the whole Fair Trade supply chain: FT producers – FT traders – FT retailers.

400 members in more then 75 coultries in all continents.

Controlled by the members with an elected Board.

Head office in The Netherlands.

Regional offices are in Chiang Mai, Brussels, Nairobi, and Assunciòn/Paraguay.

Core costs covered by membership fee.

11

Benefits & Advantages of WFTO• Recognition in the market place • Synergy from a network

– Global advocacy office in Brussels– Annual conference (Asian focus for the next 2 years)

• Bangkok 2016• India 2017

• Shared tools and information• Local workshops and training • Systematic approach for greater efficiency• Bottom up movement developed by Fair Trade

practitioners for Fair Trade practitioners

Fair Trade Organizations are able to carry the WFTO Fair Trade Organizational label for recognition in the market place.

Networks

Provide access to knowledge and resources that are not otherwise available to the organization -(Powell & Brantely)

WFTOGlobal coordinationfrom the Netherlands

WFTO-AsiaRegional supportfrom Thailand

WFTO is growing

Seoul 2014

twitter

Milan slide

Milan 2015

Regional Conference 2016 • Bangkok, Thailand• Market focus• Promoting Fair Trade Organizations

by market segment on line to global audience

Global conference 2017 • Delhi, India• At the same time as IFOAM

Shared tools

Documents translated to local languages

Workshops for members: India 2015

Bangalore 24th Feb

Delhi 3rd March Bangalore 25th Feb

Kolkata 7th March

Campaigns

Defining the Marginalized

Fair Trade …………….. by offering better trading conditions to, and securing the rights of, small and marginalized producers and workers – especially in the South.

Workshop in Milan

The VIP primarily intends to build a pool of Fair Trade advocates through volunteerism.

vip@wfto-asia.com

twitter

On average 1 post reaches +3,155 individuals

Social Media

WFTO Membership ProcessWFTO-Asia Sustainability Coordinator

Part I: Initial Requirements and Documents

Part II: The Guarantee System

1. Two years of legal existence

Initial Requirements

2. Compliance with the 10 Principles of Fair Trade

The Steps to being a Guaranteed Fair Trade Organization

•Registration document and mission statement•In country commentsNetwork reference•Three references including one WFTO member•Two years of accounts•Region submit Profile to WFTO global board for approval

Applicant

•WFTO approve provisional membership•Member pays fee (annual) SAR checked and approved at region and global•Provisional member submits SAR to the region•SAR approved by GS manager

Provisional• Peer visit completed • Audit completed

successfully

Guaranteed Fair Trade Organisation

ASIA

Applicant Steps

• Commitment to 10 WFTO Principles

• 2 Years of Legal Existence

Requirement

• 3 References (1 WFTO member)

• In country & Network comments

Profile & Supporting Docs

• Send to Asia office for

feedback & acceptance

Reference Check

Applicant

* Handling Fee *

• WFTO Asia Office & Committee

make a recommendation for WFTO Global

Recommendation

• GS Manager reviews

• WFTO Global Board makes final decision

Approval • WFTO Global office sends

1st membership

invoice

Provisional Member

• Access to members only website• Attend Events

• NO use of label

ProvisionalApplicant

Applicant Provisional

• Send SAR to WFTO-Asia for a review

• Detailed & Completed Improvement Plan

Self Assessment Report (SAR)

• WFTO Global Board makes final decision

Approval

GuaranteedApplicant Provisional

• Send SAR to WFTO-Asia for a review

• Detailed & Completed Improvement Plan

Self Assessment Report (SAR)

• WFTO Global Board makes final decision

Approval

• Audit or Peer Review to be scheduled.

Guaranteed Member

PO / MO

Producer member

Casual/ Seasonal Labour

Producer Groups

Supplier

Quality ControlSystem

Employees

IntermediaryInternal

Monitoring System

Unverified / Not

Verified

Terms:

Additional Document: Constitution & Mission Statement

Integrated Development Trust:

Mission: We are women and men of diverse ethnic and geographical backgrounds who are committed to gender equality. As individuals and as an organization, we are committed to working with marginalized, oppressed, poor and exploited women and children from Thailand, Burma and some regions in Asia.

Expression of Mission Statement: Where is this written?

*ideally in the legal registration*

① Exchange with your peers what your organizational mission statement is and how it is recorded and shared

② Review of types of registration

③ Changing the legal registration document, example by INL Impex

Additional Document: 2 Financial Accounts

What we check for:

① Is it a requirement in India to have accounts audited?

② Consistency in Name?

③ Turnover and Profit

Profile: References

Country Network | In-Country Comments | 3 References

Dear WFTO Members of India,

Happy New Year!

The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in Mumbai, India is a private company founded in 2000. The reason behind their foundation was xxxx. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. Xx has 1 store. If you would like more information please request it or visit their website at www.website.com

As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.

Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.

Thank you for your participation.

Tips for success

Complete!

Followed all the

headings

Detailed & succinct answers

Use of examples

Imagine you are explaining your organization to an alien.

Costs

Turnover/income in Euros Membership fee

Monitoring fee Regional fee Total annual

payment

< 100,000 375 25 100 500

100,001 - 135,000 375 50 100 525

136,000 - 500,0000.00275 x turnover 50 175

calculation based on turnover

500,001 - 682,0000.00275 x turnover 100 175

calculation based on turnover

683,000 - 1,000,000 1875 100 175 2150

1,000,001 - 4,000,000 1875 350 175 2400

4,000,001 - 8,000,000 1875 600 250 2725

8,000,001 – 16,000,000 1875 800 250 2925

> 16,000,000 1875 1000 250 3125

Other Costs: Handling Fee, Payment of Audit, Peer Review (alternating every 2-6 years)

Handling Fee 100-750 Euros

Understanding Frequency

Part II: The Guarantee System

The Guarantee System (GS)

Self Assessment as the basic monitoring obligation for trading organizations.

The GS guarantees the compliance of members with the WFTO Standard.

The GS label guarantees the organization, not the product.

The emphasis is on the Internal Monitoring System the FTOs use to

monitor their supply chains.

Peer visitProfile & Self Assessment

Report (SAR)

GSGuarantee

System

Monitoring Audit

Fair Trade Accountabili

ty Watch(FTAW)

Internal Monitoring

System (IMS)

Com

pone

nts

1. Pricing Transparency

2. Producer data sheets

3. Internal Monitoring System (IMS)

4. Clear Organogram

Tip: Having systems in place that keep track and monitor the following will help you be prepared for Guarantee System

Compliance Assessment

Form

Supplier Monitoring Form

SAR Sources of Information

Improvement Plan Form

Peer Proposal Form

Profile Form

Peer visit

Monitoring Audit

FTOs must propose peers who can check their practice against the

Standard. This will involve field visits to verify what is happening on

the ground and the claims in their Self Assessment Reports, as well

as some review of documents. Peers can be trading partners, FTOs

from regional or country WFTO networks, or local NGOs etc.

This will be done by independent auditors approved by WFTO as

part of the WFTO Guarantee System. They will check compliance

against the requirements of the Standard through field visits and

document review.

Internal Monitoring System

Fair Trade Accountability

Watch(FTAW)

The WFTO Logo is only the symbol and can be used on marketing material/stationery/ catalogues (but not with products)

WFTO Logo

Product Labels

The WFTO Label is for use on products, but may also be used in place of the Logo

Q & A

Here to helpWorld Fair Trade Organization-Asia

Website: http://www.wfto-asia.comGoogle Site: https://sites.google.com/site/wftofairtradestandard

SAR, Profile and Application questions and support• Elise Hawley Sustainability Coordinator

sustainability@wfto-asia.com