WFTO-Asia

Fair Trade, WFTO & WFTO-Asia,

The WFTO GS

July 30th 2015

Your tour leaders today

Hello

Introduce your partner, • Name: • Organization: • Five lines about the organization:

Christine Gent WFTO-Asia

NameLocationProduct or serviceUSP

Expectations

Agenda

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The global FAIR TRADE definition

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, small and marginalized producers and workers – especially in the South.

Environment

Financial

SocialSustainable The product lifecycle

Carbon useCradle to grave Reuse DisposalEnergy Use

CSR – Living Wage Local EmploymentFair TradeIntegration Enterprises

A bottom line that covers costs including Fair Wages, and also allows for business expansion and investment

What is Sustainable Development

Fair Trade Organizations (backed

by consumers) are engaged actively in

supporting producers, awareness raising and in campaigning for changes

in the rules and practice of conventional international

trade. by FINE 2001

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The global FAIR TRADE definition

Fair Trade

What is a Fair Trade Organization? • Income from trade • Social objectives to work with the marginalized

at the heart of the activities“commitment to improve the social and economic conditions of marginalized producers and suppliers.”

• Follow the ten principles of Fair Trade• No one type of organization• Not based around any one product or one

product standard, all the products are Fair Trade

• Formal and informal production

World Fair Trade Organisation

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Founded in 1987

The only global platform made out of members of the whole Fair Trade supply chain: FT producers – FT traders – FT retailers.

400 members in more then 75 countries in all continents.

Controlled by the members with an elected Board.

Head office in The Netherlands.

Regional offices are in Chiang Mai, Brussels, Nairobi, and Assunciòn/Paraguay.

Core costs covered by membership fee.

WFTO is Growing!

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• Credible – To be the Asian membership body for all fully committed Fair Trade Organisations (FTOs) seeking to empower groups of vulnerable producers, farmers and workers through trade.

• #WFTOguarantee

• FT and GS Workshops planned in the following countries • Philippines 28th July to 31st July• Korea 6th, 7th August• Cambodia 6th,nom 7th August• India 10th to 15th August• Sri Lanka* 11th September onward • Vietnam* early October• Pakistan* 9th November onward• Laos * early December

• Voice – To be a voice for Fair Trade and trade Increasing awareness of fair trade principles and practices among producers and consumers at grass-roots, national and regional levels. Creating an impact on and influencing policy-makers at the regional level on trade policies which will stimulate South-South trading activities

Campaigning

• Free Trade Agreements• Social Enterprise Law• Power in Supply Chains

– Anti poverty day, October 17th 2015– Fashion Revolution Day, April 24th 2016– International Women’s Day, March 8th 2016– World Fair Trade, May 7th 2016

Campaigns

Born in Garstang, UK, in 2000Fair Trade Towns

WORLD FAIR TRADE

DAY 2016 ‘Be an Agent for Change”

• Market Access – To enable members to access and share tools and training to improve market access locally, and regionally. Strengthening cooperation among fair trade groups in the region towards cultivating domestic and regional market linkages and networks.

Market Access

• NY Now, August 15-19 2015• Dortmund Fair, August 28-30 2015• Ambiente, February 12-16 2106• WFTO-Asia biennial conference to be at the

same time as BIG fair, October 2016

Networks

Provide access to knowledge and resources that are not otherwise available to the organization (Powell & Brantely)

twitter

Milan slide

WFTO-Asia

WFTO-Asia enables dedicated Fair Trade Organizations in Asia to deliver Fair Trade and to seek greater equity in

international trade.

WFTO-Asia Fair Trade Organizations at the 2014 Annual General Meeting and Conference, Seoul.

Volunteer-Internship Program (VIP)

The VIP primarily intends to build a pool of Fair Trade advocates through volunteerism.

vip@wfto-asia.com

10 Fair Trade Principles

WFTO Membership ProcessWFTO-Asia Sustainability Coordinator

Part I: Initial Requirements and Documents

Part II: The Guarantee System

Part I: Initial Requirements and Documents

1. Two years of legal existence

Initial Requirements

2. Compliance with the 10 Principles of Fair Trade

The Steps to being a Guaranteed Fair Trade Organization

•Registration document and mission statement•In country comments & Network reference• 3 references including one WFTO member• 2 years of accounts•Region submit Profile to WFTO global board for approvalApplicant

Provisional

• Peer visit completed • Audit completed

successfully

Guaranteed Fair Trade Organisation

• WFTO approve provisional membership

• Member pays fee (annual)

• SAR checked & approved at region & global

• Provisional member submits SAR to region

• SAR approved by GS manager

ASIA

Applicant Steps

• Commitment to 10 WFTO Principles

• 2 Years of Legal Existence

Requirement

• 3 References (1 WFTO member)

• In country & Network comments Profile &

Supporting Docs

• Send to Asia office for

feedback & acceptance

Reference Check

Applicant

* Handling Fee *

• WFTO Asia Office & Committee

make a recommendation for WFTO Global

Recommendation

• GS Manager reviews

• WFTO Global Board makes final decision

Approval • WFTO Global office sends

1st membership

invoice

Provisional Member

• Access to members only website• Attend Events

• NO use of label

ProvisionalApplicant

Applicant Provisional

• Send SAR to WFTO-Asia for a review

• Detailed & Completed Improvement Plan

• List Peers

Self Assessment Report (SAR)

• WFTO Global Board makes final decision

Approval

GuaranteedApplicant Provisional

• Send SAR to WFTO-Asia for a review

• Detailed & Completed Improvement Plan

Self Assessment Report (SAR)

• WFTO Global Board makes final decision

Approval• (Peer Visit)

Audit to be scheduled.

• Accepted Report

Guaranteed Member

PO / MO

Producer member

Casual/ Seasonal Labour

Producer Groups

Supplier

Quality ControlSystem

Employees

IntermediaryInternal

Monitoring System

Unverified / Not

Verified

Terms:

Additional Document: Constitution & Mission Statement

Integrated Development Trust:

Mission: We are women and men of diverse ethnic and geographical backgrounds who are committed to gender equality. As individuals and as an organization, we are committed to working with marginalized, oppressed, poor and exploited women and children from Thailand, Burma and some regions in Asia.

Expression of Mission Statement: Where is this written?

* Ideally in the legal registration *

DISCUSSION:

1. Exchange with your peers what your organizational mission statement is and how it is recorded and shared

2. Review of types of registration• Business Permit

• DTI/SEC Registration• BIR Registration

3. Changing the legal registration document – how?

Additional Document: 2 Financial Accounts

What we check for:

① Is it a requirement in Philippines to have accounts audited?

② Consistency in Name?

③ Turnover and Profit

Profile: References

Country Network | In-Country Comments | 3 References

Dear WFTO Members of India,

Happy New Year!

The WFTO-Asia office is emailing you regarding an applicant to WFTO, XXX. Based in Mumbai, India is a private company founded in 2000. The reason behind their foundation was xxxx. They have 35 primary producers that work on site, but mainly works with producer groups off site, of which there are 4 groups. Xx has 1 store. If you would like more information please request it or visit their website at www.website.com

As a member of WFTO this is your opportunity to share any comments you wish to make regarding the applicant's reputation with regard to WFTO principles and ethics. If possible, please send a response within the next 7 days. If you would like to know who this email was sent to please see the organizational list below my signature.

Lastly, please let the WFTO-Asia office know if you would like to seethese in country comments delivered in another way. We are always open toreceiving feedback on the effectiveness of this process.

Thank you for your participation.

Tips for success

Complete!

Followed all the

headings

Detailed & succinct answers

Use of examples

Imagine you are explaining your organization to an alien.

Costs

Turnover/income in Euros Membership fee

Monitoring fee Regional fee Total annual

payment

< 100,000 375 25 100 500

100,001 - 135,000 375 50 100 525

136,000 - 500,0000.00275 x turnover 50 175

calculation based on turnover

500,001 - 682,0000.00275 x turnover 100 175

calculation based on turnover

683,000 - 1,000,000 1875 100 175 2150

1,000,001 - 4,000,000 1875 350 175 2400

4,000,001 - 8,000,000 1875 600 250 2725

8,000,001 – 16,000,000 1875 800 250 2925

> 16,000,000 1875 1000 250 3125

Other Costs: Handling Fee, Payment of Audit, Peer Review (alternating every 2-6 years)

Handling Fee 100-750 Euros

Part II: The Guarantee System

The Guarantee System (GS)

Self Assessment as the basic monitoring obligation for trading organizations.

The GS guarantees the compliance of members with the WFTO Standard.

The GS label guarantees the organization, not the product.

The emphasis is on the Internal Monitoring System the FTOs use to

monitor their supply chains.

Peer visitProfile & Self Assessment

Report (SAR)

GSGuarantee

System

Monitoring Audit

Fair Trade Accountabili

ty Watch(FTAW)

Internal Monitoring

System (IMS)

Com

pone

nts

Compliance Assessment

Form• Requires detailed assessment of your

compliance against criteria linked to Standard• Plus self-rating: OK / IMP/NC• In assessment you refer to evidence to

support what you claim/ also list sources of information at end of form

Principle 10 Environment

The Improvement Plan

• Purpose to improve performance against FT principles over next 2 years

• Reference number of compliance criteria• Summarise action to be taken, when it will be done

and how you will measure its achievement• Plan will be agreed or amended with WFTO

Improvement Plan Form

Internal Monitoring System

Fair Trade Accountability

Watch(FTAW)

Discussion:

What worries you the most and least about WFTO membership?

The WFTO Logo is only the symbol and can be used on marketing material/stationery/ catalogues (but not with products)

WFTO Logo

Product Labels

The WFTO Label is for use on products, but may also be used in place of the Logo

Label Example

BUYER LABEL

CONTRACT FOR USE OF THE BUYER LABEL BY FIRST BUYER OF PRODUCTS FROM A WFTO MEMBER

• WFTO authorises its guaranteed members to use the WFTO Product Label and for their direct first buyer, which is using its own brand, also to place a WFTO Product Label (version Buyer of FTO) on products acquired directly from a WFTO Guaranteed Member if that member agrees to it. The WFTO Product Label is owned by WFTO. Only the first buyer from a member may use the Label and the right to use the Label cannot be passed on to any further buyers. The first buyer must be registered in WFTO Buyer’s Database and have signed the contract for Buyer Label use with WFTO (below) and with the WFTO member.

• Licence fee to be paid per purchase order by the Buyer (1% of purchase order value from WFTO supplier - 100 euro minimum, payable by buyer)

Q & A

We have resources for you!

• Visit our google site• Please use the handbook• Visit our webpage “FAQs”• Return to this powerpoint• Ask a fellow WFTO member• Contact us: email, skype, chat!

Contact info:Elise Hawley

Skype: elise.hawley1

Email: sustainability@wfto-asia.com