The WFTO Fair Trade Standard specifies criteria for assessing if an enterprise truly implements the 10 Principles of Fair Trade. Demonstrating compliance earns Fair Trade Enterprises the designation “Guaranteed Fair Trade”. This Standard is the heart of the WFTO Guarantee System, focusing on the management and operation of Fair Trade Enterprises.
The WFTO Standard comprises of a set of compliance criteria based on the 10 Fair Trade Principles and International Labour Organisation (ILO) conventions. Many of these criteria must be met before Guaranteed status is approved, while others must be met within 2 to 4 years after approval for guaranteed membership or require continuous improvement.
A member is expected to apply the WFTO Standard and implement the requirements in a diligent and transparent manner, and constantly refine their Fair Trade practises. The aim of continuous improvement is to encourage the highest level of achievement for WFTO member organisations over time, with measurable advances in the way their organisation operates.
The primary goal of the Guarantee System is to improve Fair Trade practices, covering the whole enterprise and the supply chain. It is an accountability as well as a development tool for enterprises. Filling in Self Assessment Reports and going through audits allows WFTO members to check their way of working in the light of the WFTO Fair Trade Standard, develop their business and become more competitive and responsive to evolving ethical markets, thereby creating the potential for increased sales.
The Guarantee System is not a product certification system. It is an assurance mechanism that an enterprise is truly purpose driven and that Fair Trade practices are implemented in the supply chain and practices of the whole enterprise. Members that pass the GS process attain the ‘Guaranteed Fair Trade Enterprise’ status and may use the WFTO Label on their Fair Trade products.
WFTO boasts a global membership, with enterprises assigned to regional offices based on their geographical location. For example, members from Africa, the Middle East, and Türkiye are designated to WFTO AME. This ensures that all members receive tailored support relevant to their specific region.
Membership is open to a variety of enterprises off all sizes, including primary producer organizations (e.g., cooperative societies or unions), smallholder collectives, family farmers, artisans, aggregators and supporting organizations across diverse value chains.
Compliance is based on the Fair Trade Standard, which outlines criteria for implementing the 10 Fair Trade Principles. The WFTO Guarantee System (GS) verifies and monitors adherence to these standards, assessing the entirety of a business rather than just specific products, ingredients, or supply chains.