1. THE NEW WFTO GUARANTEE SYSTEM DRAFT – NOT FINAL BOB CHASE BOB.CHASE@SERRV.ORG Sottotitolo

2. CHARACTERISTICS The new WFTO Guarantee System includes: some existing membership control elements of WFTO new elements Definition of a Quality Management System certifiable The design of this Guarantee System is based on: best practices of Producer Group Internal Control Systems (ICS) best practice of Organic Participatory Guarantee Systems (PGS), independent monitoring audit existing WFTO membership system experiences

3. OBJECTIVES The Guarantee System shall ensure that WFTO members adhere to the organization’s Principles as expressed in the new WFTO Standard approved in 2012 by the WFTO Board of Directors. TOOLS The three main components to assess members’ respect for the WFTO Principles are: Self Assessment: every 2 years Monitoring Audit by an approved WFTO auditor or audit according to an equivalent Fair Trade certification scheme every 2- 6 years depending on the risk category Peer Visits by local peers nominated by the FTO: every 2 - 6 years depending on the risk category Additionally, the ‘Peer Watch’ tool provides a mechanism for ongoing feedback and monitoring between FTO members and by members of the public.

4. CLASSIFICATION OF THE WFTO MEMBERS Trading WFTO members (producers, traders) are categorised in three risk categories based on: complexity scale control of their operation whether they use the WFTO label on their products or not. Initial Risk assessment Findings of the audits or visit Updating of the category Definition of the Risk category The risk category influences the depth and frequency of monitoring

5. WFTO GUARANTEE SYSTEM CYCLE FOR DIFFERENT MEMBER TYPES Low Risk Trading FTO Medium Risk Trading FTO High Risk Trading FTO Non-Trading Members Self AssessmentEvery 2 years Monitoring Audit Every 4 years after 2 good audits reduced to every 6 years Every 4 yearsEvery 2 years Only if issues arise from peer visit or peer watch Peer Visit Every 4 years after 2 good audits reduced to every 6 years Every 4 yearsEvery 2 years Every 4 years (except FT regional networks)

6. Monitoring visits alternate with peer visits. Thus the frequency of physical visits (either monitoring audits or peer visits) is as below: WFTO GUARANTEE SYSTEM ASSESSMENT FREQUENCY L OW R ISK T RADING FTO M EDIUM R ISK T RADING FTO H IGH R ISK T RADING FTO N ON -T RADING M EMBERS Assessment Visit frequency (peer visit or monitoring audit) Every 3 years; (after 2 successful initial audits) Every 2 yearsEvery year Every 4 years, higher in cases of concerns

7. MONITORING SCHEDULE Monitoring audit Qualification Peer visit Approval or sanction Monitoring audit Approval or sanction At least every 2 year Audit reports of other Fair Trade schemes that are accepted by WFTO as equivalent, can be accepted as a qualifying audit For high risk operations there may be an intermediate approval or sanctions process in line with their annual assessment frequency The use of WFTO label is possible only after the completion of the new self assessment against the Standard

8. NEW MEMBERS Any producer or trader organization that is committed to Fair Trade and can demonstrate sound behaviour from a social, economic, cultural and environmental point of view in line with the WFTO Principles can apply to be registered as member. New members are first “provisional” members with restricted rights. After they have passed their first monitoring audit successfully they can be approved as full members. An associate organization - donor organization or national or international agency that supports or campaigns for more just trading conditions - cannot be registered as a Fair Trade Organization/member but can become an associate member

9. NEW MEMBERS

15. PILOT PROJECTS IN PROGRESS 1ACP Nepal 2Ayni, Bolivia 3Creative H'craftsIndia 4El Puente, Germany El Puente suppliers 5KTS, Nepal 6Pachacuti, UK Pachacuti SuppliersEcuador 7PeopleTree, UK PeopleTree suppliersBangladesh 8Selyn, Sri Lanka 9SMOLart, Kenya 10Thanapara SwallowsBangladesh 11

17. IN GENERAL FEEDBACK HAS BEEN POSITIVE “I too wanted tell you that the system is very clear, not at all complicated and not too expensive at all. Except for the charges of Eco cert for certifying I did not have to incur any other expense.” …Johny Joseph, Director, Creative Handcrafts But there are recommendations for changes coming out of the Pilot projects..and there will be changes as it moves forward.

18. THE SYSTEM IS ABOUT PEOPLE

19. WORKERS

21. FARMERS

22. ARTISANS

23. CUSTOMERS

25. IS THIRD PARTY VERIFICATION NECESSARY? HOW SHOULD IT HAPPEN? IF NOT THIS SYSTEM THEN WHICH ONE? Thank you Bob Chase bob.chase@serrv.org or 608-255-0440bob.chase@serrv.org