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World Fair Trade Organization
Understanding theWFTO
Guarantee System
3 April 2014Fair Trade Federation Conference
Indianapolis, IN
WFTO.COM
WFTO.COM 1
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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