When is a Fair Trade Network a County Network?

Workshop

The development of national networks of Fair Trade Groups and WFTO members

Agenda• Summary of current situation– Global position– WFTO-Asia Regio, where we are now along with the

challenges– National members

• Bangladesh• India• Nepal

– National non members• Indonesia• Sri Lanka• Philippines

• Where we want to go what is the ideal• How to get there – what are the interim steps

The text of that resolution read as follows:

“1. Whereas the WFTO continues to be the primary global voice of Fair Trade – facilitating networking for a collective voice, promoting market access, enabling conscious consumption, and lobbying/advocating Fair Trade for a balanced social economy across the world;

2. Confirms that national networks are needed for a bottom-up approach to Fair Trade – acting local while thinking global;

3. Suggests a three-tier approach: national networks to form tier 1 to facilitate, speak, and represent Fair Trade at the national level, they will link through regions as tier 2 and the global network as tier 3; this should allow global and regional coordination while the country networks spearhead the activities and act as the voice of the grassroots organisation as well as lobbying at the country level.”

The AGM resolved that the national networks be recognized as an important link of the global movement, with the required affiliation by the WFTO, while the national networks remain as an independent entity to effectively lead Fair Trade actions at the national level.

The Role of Country Networks and Recognition Criteria

WFTO.COM August 2014

WFTO-Asia• WFTO-Asia already have a history of working

together with national networks and this is essential to the WFTO-Asia and here in the office we area committed to this continuing.

• WFTO-Asia recognizes the significant role of Fair Trade Networks in supporting and encouraging Fair Trade Groups that are not for various reasons able to join WFTO and see it as essential that all developments foster and support networks in this role.

Where we are now, working with the system as it is now

The WFTO Guarantee System States

• Non trading member organisation (NTO)– Fair Trade member organisation that is not involved in

trading of FT products (e.g. a Fair Trade Support Organisation or Fair Trade Network)

• Full members of WFTO can be:– Networks of Fair Trade organisations (FTN)

Ch 5 The Guarantee System for Fair Trade Support Organisations or Fair Trade Networks WFTO also has full members who are not trading. They are categorised as Fair Trade Support Organisations (FTSO) or Fair Trade Networks (FTN), and they do not have the same obligations in the Guarantee System as trading members. Unless they opt to fulfil the requirements of the Guarantee System, they may not use the WFTO Product Label. Support or Network organisations with some trading activity

Some organisations are admitted as FTSOs or FTNs even though they do some trading as a minor part of their activities. When they do their initial Self Assessment they will need to answer all the questions which apply to their trading activity, and their initial audit will look at their trading data. If it is decided that they can be admitted as Support or Network members they will have no further scheduled monitoring within the Guarantee System.

The standard states

• Non Trading Organisations (NTO)Fair Trade Support Organisations or Fair Trade Networks and other member organisations who do not produce or trade Fair Trade products as their main activity.

In Country Comments

• At the same time, the Regional office contacts all other members of WFTO in the candidate’s country to provide them with the opportunity to share any comments they wish to make regarding the applicant’s reputation with regard to WFTO Principles and ethics.

• No mention of checking with networks

Current Monitoring Obligations and Fees

When FTSOs or FTNs apply to be full members of WFTO, they need to complete the Profile form and Self Assessment Report for all the compliance criteria which apply to them. They will also undergo an initial Monitoring audit. However after they are admitted as full members they are not given a monitoring schedule in the Guarantee System, and do not have to undergo periodic Peer visits and Monitoring audits. They also do not have to fill in a Self Assessment Report every 2 years.

However to remain as members they will need to send their audited accounts and Annual Report to WFTO every year, and update their Profile form every 2 years. For existing FTSOs or FTNs, the Board may decide that a Monitoring audit is necessary if any concerns regarding compliance with Fair Trade Principles are raised about particular organisations.

Annual Fee 2014 Euro 300

ID Organisation Name Membership Status

Membership Type

Country Name

385 Artisans Association of Cambodia Member FTN Cambodia

92 ECOTA National Fair Trade Network of Bangladesh Member FTN Bangladesh

482 Fair Trade Forum India (FTF) Member FTN India

116 Fair Trade Group Nepal (FTGN) Member FTN Nepal

• Missing– Indonesia – Sri Lanka– Philippines ?

Confused?

• FTN – this is what we have now, the four organisations listed are FTN

• Country Networks – the next step, none exist we are defining what this is

Usurers!

• WFTO along with its members lose between 4 and 8,000 Euro a year in paying bank charges! Just to transfer our fees

• What could we do with that money? • Country networks could for 10 Euro fee send

the money to global? That would save members money and generates 10 Euro for the FTN?

Where we want to go• Country networks that represent all the WFTO members in that country along

with smaller Fair Trade Groups• Recognition by WFTO of the role of the FTN beyond membership• Better value for members at all levels• Efficiency in terms of time and energy for applicants, national, regional and

global offices• Financial contribution to all three levels• Fair Trade Networks and WFTO to align membership process for applicants

who wish to join WFTO • Less bank charges!

How to get there - DRAFT!

• WFTO to work with existing FTN on new applications• FTN to accept the WFTO process when they do not

know the member?• Add a section about reference from Fair Trade

Networks to the profile • WFTO to amend proposal so that Country Networks

must have 100% of members• WFTO-Asia to work with existing FTNs to encourage

members (who do not belong to the FTN, but do belong to WFTO) to join the FTN

Nearly there, lets think about incentives?

• All WFTO members in that country are also truly members of one network in that country– Recognition as ‘Country Network’ – 25 Euro per member from Asia? – 100 Euro decentralization fee for new members

only

Adding Value Together

• Fair Trade Finest• Design development – Milan /Laura• Exchange of skills and markets• Faster application process to WFTO• Pooled resources• In country advisers