World Fair Trade Organization

Understanding theWFTO

Guarantee System

3 April 2014Fair Trade Federation Conference

Indianapolis, IN

WFTO.COM

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Who we are & what we do

A ‘membership organisation’: members decide!

Overarching goal (Strategic Plan 2013-17):

Together, building a more just world economy.

• Membership and Monitoring (the Guarantee System)

• Advocacy

• Communications

• Capacity-building

• Market access

• Campaigns and Events

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WFTO’s vision: A sustainable and fair economy

The World Fair Trade Organization has a vision of a world in which trade structures and practices have been transformed to work in favour of small producers and promote sustainable development and justice.

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WFTO’s Mission

WFTO’s mission is to enable small producers to improve their livelihoods and communities through Fair Trade. WFTO is the global network and advocate for Fair Trade, ensuring produces’ voices are heard. The interest of producers, especially small farmers and artisans, is the main focus in all the policies, governance, structures and decision-making within the WFTO.

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WFTO

• A ‘membership association’, established in 1989

• More than 350 member organisations 100% committed to Fair

Trade, in around 70 countries (trading org., nat. networks and

support org.), representing the entire supply-chain

• AGM, Board of Directors, Global Office/Secretariat, Working

Groups, Committees and Task Forces

• 5 regional branches (Europe, Africa, Asia, Latin America and Pacific

Rim)

• Headquarters/main office: Culemborg, the Netherlands

• Biennial Conference (next one: Milan May 2015): start planning!

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Broad Strategic Goals (2013-2017)

Goal 1: To be the global membership body for Fair Trade Organizations seeking to empower groups of vulnerable producers, farmers and workers through trade

Goal 2: To be a space where members connect with each other – to work together, to cooperate, collaborate and share innovative ideas and learning.

Goal 3: To enable members to access tools and training to improve market access locally, regionally and internationally.

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Broad Strategic Goals (2013-2017)

Goal 4: To create a common voice that shouts loudly about Fair Trade and trade justice - and is heard.

Goal 5 (internal, extra): To have the leadership, capacity, resources and structures for good network governance which enable the WFTO to be dynamic, flexible and healthy.

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The 10 Principles of Fair Trade (I)

1. Creating opportunities and

market access for economically

disadvantaged producers

2. Transparency and accountability

3. Fair trading practices (long-term,

solidarity, pre-financing,

assistance)

4. Payment of a fair price, fair trade

terms

5. No Child Labour or Forced

Labour (Respect of UN

Conventions)

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The 10 Principles of Fair Trade (II)

6. Non-discrimination, gender

equity and women’s economic

empowerment, and freedom

of association

7. Safe and healthy working

environment

8. Providing capacity-building of

small producers

9. Promotion of Fair Trade and

trade justice

10.Respect for the environment

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WFTO Fair Trade Standard

Set of compliance criteria to assess members against each FT principles

WFTO Fair Trade Standard

Principle 1

Principles2

Principle 3

Principle 4

Principle 5

Principle 6

Principle 7

Principle 8

Principle9

Principle10

The new WFTO

Guarantee System (GS)

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• WFTO principles = our core values/brand values

• WFTO (AGM) = owner of the WFTO FT Principles

• WFTO Guarantee System = how we implement & protect our values

• WFTO (AGM) = material & intellectual owner of the system.

WFTO is the Standard-Setting Body by and for its membership

The WFTO’s new Guarantee System: Ownership!

The WFTO’s new Guarantee System: A 2-step approach!

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WFTO Guarantee System: Components

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components of WFTO system

self assessment

monitoring audit

peer visitTI ME

P

E E

R

W

AT

CH

C

OM

P LA

I N

T

ext. evaluation

WFTO Guarantee System: Steps for members

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The Guarantee

System

Membership admission procedure

Self-assessment

Monitoring audit

Peer visit

Fair Trade Accountability Watch

WFTO GS: FTO Risk level and tools

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New applications: Steps for new FTO members (I)

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REQUIREMENTS:• 2 years of legal existence

• Commitment to WFTO FT Principles (check WFTO FT Standard compliance criteria)

Step 1a: PROFILE FORM

Submit Profile Form + supporting docs.

• Regional Office checks for completeness and sends feedback to applicant as necessary

• Cost: 100 Euros (handling fee)

Step 1b: REFERENCES

• Regional Office collects references + in-country comments (FTAW)

New applications: Steps for new FTO members (II)

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Step 2: RECOMMENDATIO

N

• Global Office assesses application and makes recommendation for WFTO Board

Step 3:

APPROVAL

(or rejection)

• WFTO Board makes final decision

Step 4:

Pay WFTO fee

• WFTO Office sends 1st membership fee invoice

• Cost: annual fee; variable depending on size and type of member

Result: PROVISIONAL MEMBER

Guarantee System: 1st cycle/steps for FTO members (I)

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Step 1:

SAR

• Submit Self-Assessment Report, incl. Improvement Plan + updated Profile Form (if more than 6 months old)

• Regional Office checks for completeness of SAR

Step 2:

Peer Visit (recommended)

• Member proposes peers; WFTO selects

• Member arranges and pays for peer visit

• Peer report (+ Improvement Plan) sent to WFTO Office

Step 3:

Monitoring Audit

• WFTO Office selects auditor

• Members arranges and pays for audit

• Audit report is sent to WFTO Office

• GS Manager assesses reports and makes recommendation for WFTO Board

Guarantee System: 1st cycle/steps for FTO members (II)

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Step 3:

Monitoring Audit

(cont.)

• ...

• GS Manager assesses reports and makes recommendation for WFTO Board

Step 4:

Approval (rejection)• WFTO Board makes final

decision

Result:

GUARANTEED FAIR TRADE ORGANISATION

• WFTO sends Monitoring Schedule to member

• Cost: annual membership fee

Guarantee System: Steps for FTO members

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1. Self-assessment report (SAR)

Peer visit

SAR

Monitoring audit

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• Credible

• Sustainable (affordable and transparent)

• Simple

The WFTO’s new Guarantee System: Conclusion

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Benefits for WFTO Guaranteed Members

WFTO Product Label

• The WFTO Product Label is an organisational

label that can be used on products. WFTO

members that successfully pass the WFTO

Guarantee System have the option to use the

WFTO Product Label to differentiate their products

as Fair Trade in the market.

Global and Regional networks

• The world’s only network of artisans, farmers,

producers, brands and businesses. Our

membership represents the Fair Trade chain from

production to sale, spread across five regions.

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Benefits for WFTO Guaranteed Members

A Voice in Fair Trade

• Advocacy and campaigning, World Fair Trade Day and policy impact

through our cooperation with other major Fair Trade bodies.

Continuous Learning

• WFTO global and regional conferences focus on networking, capacity

building and discussion and decision-making on our global strategy.

Favourable credit & payment facilities

• Access to the Shared Interest Clearing House program and other

support and business services.

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Benefits for non-WFTO Members

AS A BUYER

• Having a ‘WFTO Guaranteed’ supplier – less work to confirm the FT

credentials of your suppliers – increased credibility!

- No need for an Internal Monitoring System?!

• Using a monitoring system that is common to several FT actors,

means no need to repeat assessments

AS A SUPPLIER

• Being a supplier to a WFTO Guaranteed member – stronger identity,

better credibility, more market access!

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What the WFTO product label means

The WFTO Product Label is an organisational

label that can be used on products.

WFTO members have successfully passed the

WFTO Guarantee System.

Guaranteed members are regularly monitored.

Thank you!

Questions?

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