1. 13-14 September 2014 Hanoi, Vietnam MUTRAP Training 2014

2. WFTO Guarantee System (GS)

3. How it began Mombasa AGM 2011 – decision to develop new Fair Trade system to guarantee Fair Trade credentials of members Working Group convened / began work end 2011 Rio AGM 2013 – agreement on financing of system & external certification in due course June 2013 – implementation started December 2015 – all members will have completed the WFTO Guarantee System Self Assessment Report

4. WFTO Guarantee System: Components WFTO.COM Peer visit Self Assessment Report (SAR) GUARANTEE SYSTEM Monitoring Audit Fair Trade Accountability Watch (FTAW) Internal Monitoring System (IMS)

5. New applications: Steps for new FTO members (I) WFTO.COM 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: Handling fee (100 Euros) Step 1b: REFERENCES Regional Office collects references + in-country comments (FTAW)

6. New applications: Steps for new FTO members (II) WFTO.COM 17 Step 2: RECOMMENDATION 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

7. Guarantee System: 1 st cycle/steps for FTO members (I) WFTO.COM 18 Step 1: SAR (+PF+IP) 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

8. Guarantee System: 1 st cycle/steps for FTO members (II) WFTO.COM 19 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

9. Guarantee System: The Monitoring Audit WFTO.COM 20 Cost of audit dependent on: Geographical location, Size of organisation, Complexity of supply-chain, Number of ‘non-verified suppliers’ → the IMS (Internal Monitoring System) 1-2= 1 / 3-5= 2 / 6-10=4 / more than 10 = 

10. Guarantee System: Steps for FTO members WFTO.COM 1. Self- assessment report (SAR) Peer visitSAR Monitoring audit

11. WFTO GS: FTO Risk level and tools (I) WFTO.COM

12. WFTO GS: FTO Risk level and tools (II) WFTO.COM Risk Factors: 1.No. of Producer groups/suppliers, 2.No. of product lines, 3.Robustness of IMS (control supply chain), 4.% of purchase of products without FT control, 5.Use of WFTO Product Label, 6.Serious complaints, 7.No. of Non-compliances audit related.

13. What the WFTO Product Label means The WFTO Product Label is an organisational label that can be used on products. It differentiates Fair Trade products in the market. It empowers members to strive for continuous improvement. Available to WFTO members who have successfully passed the WFTO Guarantee System. Guaranteed members are regularly monitored.

14. Product Labels

15. Product Labels: Selyn and ACP

16. WFTO.COM Credible Sustainable (affordable and transparent) Simple Flexible The WFTO’s Guarantee System: Conclusion

17. Thank you! Questions? WFTO.COM