The new WFTO Guarantee System Draft – Not Final Bob Chase bob.chase@serrv

1. The new WFTO Guarantee System Draft – Not FinalBob 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 Auditby an approved WFTO auditor or audit according to an equivalent Fair Trade certification scheme every 2- 6 years depending on the risk category • PeerVisits 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 Definition of the Risk category Findings of the audits or visit Updating of the category The risk category influences the depth and frequency of monitoring

6. Monitoring visits alternate with peer visits. Thus the frequency of physical visits (either monitoring audits or peer visits) is as below:

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

8. AnyproducerortraderorganizationthatiscommittedtoFairTradeandcandemonstratesoundbehaviourfromasocial,economic,culturalandenvironmentalpointofviewinlinewiththeWFTOPrinciplescanapplytoberegisteredasmember.AnyproducerortraderorganizationthatiscommittedtoFairTradeandcandemonstratesoundbehaviourfromasocial,economic,culturalandenvironmentalpointofviewinlinewiththeWFTOPrinciplescanapplytoberegisteredasmember. Newmembersarefirst “provisional” memberswithrestrictedrights. Aftertheyhavepassedtheirfirstmonitoringauditsuccessfullytheycanbeapprovedasfullmembers. Anassociateorganization-donororganizationornationalorinternationalagencythatsupportsorcampaignsformorejusttradingconditions -cannotberegisteredasaFairTradeOrganization/memberbutcanbecome an associatemember NEW MEMBERS

9. NEW MEMBERS

15. Pilot Projects in Progress 1 ACP Nepal 2 Ayni, Bolivia 3 Creative H'crafts India 4 El Puente, Germany • El Puente suppliers 5 KTS, Nepal 6 Pachacuti, UK • Pachacuti Suppliers Ecuador 7 PeopleTree, UK • PeopleTree suppliers Bangladesh 8 Selyn, Sri Lanka 9 SMOLart, Kenya 10 Thanapara Swallows Bangladesh • 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 608-255-0440