OAS
   

OAS TRADE SERIES



 

Analyses on trade and integration in the Americas

   
 

Gender Issues in Trade
Policy-Making

Isabel Coche
Barbara Kotschwar
Jos� Manuel Salazar-Xirinachs

 

A Publication of the
Organization of the American States
Departament of Trade, Tourism and Competitiveness
Executive Secretariat for Integral Development (SEDI)
1889 S Street NW
Washington, D.C. 20006
USA

 

June 2006

 


 


 

PREFACE

In recent years the gender impact of trade policy has received increasing attention. The Organization of American States(OAS) has joined other multilateral organizations in working to incorporate agender perspective into its activities and projects.  This study is one of the OASDepartment of Trade, Tourism and Competitiveness (DTTC)�s gender mainstreaming activities,and is designed to explore key questions facing trade policymakers today.  Thepaper explores why trade policymakers should care about gender as theynegotiate and implement trade agreements.  The authors outline different waysin which women and men may be affected differently by economic policies anddifferent ways in which responses to trade policy changes may be affected bygender. The paper concludes with an examination of various ways to address thepotential gender impact of trade and offers some guidelines for policymakers asthey negotiate and implement trade agreements and as they craft policies to facilitatetheir transition toward freer trade.

The paper benefited from the different experiences and points of view of theauthors.  Jos� Manuel Salazar-Xirinachs, now Executive Director of theEmployment Sector of the International Labour Office (ILO) in Genevacontributed to this study as Director of the then-Trade Unit.  As well as hisacademic perspective as an economist, Dr. Salazar brought to the study hisexperience as a Trade Minister and negotiator. Barbara Kotschwar, an economistand Senior Specialist in the Trade Unit has spent several years teaching tradepolicy and working with OAS Member States on issues related to trade. IsabelleCoche, a consultant to the Trade Unit, contributed expertise on gender issuesrelated to development. The paper benefited greatly from discussions withcolleagues in the Trade Unit, in the Inter-American Commission on Women, andcolleagues in other international organizations and NGOs.  The aim of theauthors is that this paper serve as a think-piece to further stimulate debateon the issue of trade and gender.The Department of Trade, Tourism and Competitiveness works within the Executive Secretariat for Integral Development(SEDI), the economic development arm of the OAS.  Its mission is to support OASMember States in their efforts to promote economic diversification andintegration, trade liberalization and expanded market access, so as tocontribute to the Summit objectives of creating jobs to reduce poverty andstrengthen democratic governance in the Americas.   

The DTTC responds to the trade-capacity building needs and requests of OAS Member States through the HemisphericCooperation Program and other cooperation mechanisms under free tradeagreements and integration processes in the Americas with a view to assistingcountries in implementing their trade commitments and adjusting to free trade.   Weare committed to assisting countries of different levels of development andsize in the design, formulation and implementation of policies aimed atstrengthening their productive capacity and competitiveness so as to enablethem to reap the benefits of freer trade, and expand economic growth andenhance prosperity. The DTTC also promotes dialogue between OAS Member States and their civil society through the dissemination of information on trade-relatedissues.  

We welcome comments from readers on this and other studies, through which we hope to contribute to fostering the dialogue ontrade, economic integration and competitiveness-related issues in theHemisphere. The views expressed in the OAS Trade Studies series are theauthors� own and should not be attributed to the General Secretariat of the OASor any OAS Member State.

Sherry M. Stephenson  

Acting Director
Department of Trade, Tourism and Competitiveness
Executive Secretariat for Integral Development (SEDI)
June 2006

Table of Contents

PREFACE

I. Introduction

II. Why should trade policymakers care about gender?

III. Why may women and men be affected differently by economic policies?

A. Differences in time allocation
B. Differences in consumption patterns
C. Differences in production patterns

IV. Trade policy: trade agreements and gender equity

A. Trade policy: impact studies
B. Trade policy: negotiation of trade agreements
C. Trade policy: beyond trade agreements

V. Conclusions

BIBLIOGRAPHY

Appendix I. Provisions in Trade Agreements with References to Gender

I. Introduction[1]

The Summit of the Americas process � the mechanism through which the Inter-American agenda has been expressed since the first Summit was held in 1994 � has, since its inception, included trade as an essential element to accomplishing the goals of �advanc[ing] the prosperity, democratic values and institutions, and security of our Hemisphere� (Summit of the Americas 1994). The leaders of the Americas, at their initial meeting in Miami, decided together to begin the construction of the Free Trade Area of the Americas (FTAA), an initiative to unite these thirty-four countries into a free trade zone of over 834 million people and a combined GDP of over $12.7 trillion (2002 figures, World Bank 2004). At the fourth Summit of the Americas in November 2005, in Mar del Plata, Argentina, free trade and increased economic integration were reiterated as key to raising standards of living, improving working conditions and better protecting the environment, and leaders pledged to �expand our trade, as a means of boosting growth and our capacity to generate more, higher quality, and better-paying jobs� (Summit of the Americas 2005, paragraph 18).

The Summit agenda also recognizes gender issues as significant to the promotion of the goal of �economic growth with equity to reduce poverty.�  The Inter-American Program on the Promotion of Women's Human Rights and Gender Equity and Equality, which calls upon governments to strengthen national institutions responsible for women's development, adopt public policies aimed at promoting fairness, bring national legal institutions in line with international treaties, and improve women's access to justice, among other steps was adopted in Quebec at the Third Summit of the Americas in 2001. At the Mar del Plata Summit, leaders of the Americas reiterated in their Declaration that �[w]e will combat gender-based discrimination in the work place, promoting equal opportunities to eliminate existing disparities between men and women in the working world through an integrated approach that incorporates gender perspective in labor policies�� (Summit of the Americas 2005, paragraph 23).

Many countries, through national and international policies and treaties, have committed to promote the concept of gender equality � encapsulated, for example, in the United Nations� millennium development round Goal 3: Promote gender equality and empower women (United Nations 2005).  The Organization of American States has joined other multilateral organizations in working to �incorporate a gender perspective throughout the inter-American system� and to �make enhanced efforts to integrate a gender perspective into every aspect of the hemispheric agenda, from human rights to trade policy� (Organization of America States 2004). The OAS General Assembly has promised to �[i]ntegrate a gender perspective into its resolutions, activities, and initiatives, as appropriate, to ensure that they benefit women and men on an equal basis� (Organization of American States 2003).

This paper will examine some of the issues that can be taken into account in incorporating a gender perspective into trade policy. The following issues are examined:

Different characteristics attributed to men and to women that may affect their respective roles in trade and their reactions to changes in trade policy;

The means by which gender issues have been incorporated into trade policy in the Americas;

Discussion of tools that could be utilized to address this issue.

It should be noted that this paper is to serve as a preliminary step towards understanding the issues, and is by no means proscriptive; the aim is, rather, to stimulate an initial discussion between trade policymakers and those examining gender mainstreaming issues and to provide trade policymakers some guidance in making future policy decisions. It also recognizes the wide body of work in this area, including work by academics, international organizations and non-governmental organizations (NGOs).

II. Why should trade policymakers care about gender?

In theory, trade is gender-neutral; factors of production include �land,� �labour� and �owners of capital� but not �men� and �women�. Trade enhances some activities and diminishes others; creates opportunities for some sectors and destroys others without regard for the gender of those employed therein or reliant thereon. Trade theory recognizes that different groups are affected differently by changes in trade policy. This can be illustrated by the example of the removal of a tariff. In a simple small-country model, the removal of a tariff on widgets causes the price of widgets in the small country to fall. Consumers will benefit, as they can now buy a larger bundle of widgets for the same income. They may even be able to buy a more varied bundle of goods as a result of the lower price of widgets; that is, the opportunity price of widgets has declined: less of other goods must be given up to buy enough widgets to satisfy the consumer�s needs. Producers and workers are also affected by the removal of the tariff: this policy move will change the relative prices of domestic and imported goods and will cause resources to shift from one sector into another. It is now less profitable to produce widgets, so over time, companies that were able to produce widgets only under the cover of tariff-elevated prices will move out of the widget sector. The resources previously used to produce widgets will shift into other sectors; in a free trade situation, these resources will move to sectors in which they will be utilized more efficiently. Workers employed in those companies will lose their jobs and must shift into other activities. The government will lose the revenue it previously garnered from tariffs on widgets. Overall, the economy will win in terms of the elimination of the so-called �deadweight loss� gaining efficiency and overall welfare.[2]

Looking at this example, how a person in this country fares has more to do with that individual�s relationship to widgets than to whether they are male of female. People working in firms that used to produce widgets but can no longer compete will lose as a result of the removal of widget tariffs. Those people are important to the policymaker because they will no longer have a job and may need some sort of unemployment insurance, retraining programme or other adjustment assistance. The trade policymaker will need to think about what would best help these people make the transition into a more competitive and sustainable sector. The people working in the sectors into which the resources released by companies leaving widgets are also of interest to the policymaker, as they are the winners from the trade policy decision. These are the people who benefit from free trade and whose industry is providing employment. Consumers are also important to the trade policymaker, as their increased consumption, resulting from the money saved as a result of the eliminated tariff, help the economy grow. The policymaker must also consider the implications of the removal of widget tariffs on the government, which has lost tariff revenue, and the people whose welfare has declined as a result of no longer receiving benefits from government services that had to be cut or cut back as a result.

Gender becomes of concern to the trade policymaker if the fact of being a man or a woman somehow affects the person�s relationship to widgets � that is, if the impact of the trade policy action in �gendered.� If being a man makes an individual more likely to fall into the category of displaced widget workers, this is necessary information to the policymaker. If women as a group benefit more from consuming more widgets, or if they are the group more likely to have previously benefited from government services financed by widget tariffs, this is also important information for the policymaker. 

While economic models do not consider whether the winners or losers are male or female, data and anecdotal evidence suggest that there may be some characteristics inherent to or related to each gender that will cause these groups to react differently to trade policy changes. If policymakers are able to better understand the gender-related constraints and advantages, they can better anticipate the results of trade policy changes and work to construct policies and programmes that can address the consumption, wage, and employment effects in their country. This can help policymakers reach their goals of promoting gender equity and effecting a successful transition to free trade.

Before examining the gendered effects of trade, it is important to understand what is meant by the concept of �gender.� The notion of gender differs conceptually from that of sex, which refers to the biologically determined fact of being a man or a woman. Gender refers to �how a person�s biology is culturally valued and interpreted� into ideas of what constitutes men�s and women�s roles (Reeves and Baden 2000). Gender, as other components of identity, will influence the way people behave, with whom they will associate, their relationship to the state and society, their expectations and decision-making. Gender ideologies are built into social structures, such as the household, legal systems, markets and states and are expressed in practices that are translated into norms of acceptable behaviour, social expectations, differences in access to resources, and in the division of labour.

All societies have gender systems which attribute different roles to men and women. Gender identities are superimposed on other identities, and interact with other factors � level of income, degree of education, ethnicity, race, for example � and at times these other elements may take precedence in determining an individual�s response to changes in economic policy. Nonetheless each group - for example ethnic or socioeconomic - will include roughly half each of men and women, whose relationships to one another are influenced by prevalent gender norms. However, as socially constructed, gender identities are open to challenge, change and variation.

While the issue of gender concerns both men and women, current policies and programs aimed at �gender equality� have put a seemingly disproportionate emphasis on women. This is because in general (although not everywhere), men have traditionally had a dominant role in social relations, in particular those of authority and power.[3] Another reason is the manner in which the notion of gender has emerged on the policy agenda.[4]  The focus on women can be seen as an effort to address an existing situation in which women have had less access to assets, markets and political bodies than, traditionally, have men.[5]

The issue of gender can be phrased in two different, but often complementary, ways. One approach focuses on equality: the idea that men and women should have equal opportunities with the goal of creating a level playing field. The other approach phrases the issue in terms of equity and places the emphasis more on equal outcomes for men and women, and thus stresses the different needs, interests, and desires of men and women.

The link between trade liberalization and gender issues is far from clearly understood. Some groups claim that trade liberalization hurts women; other research indicates that trade improves prospects for women�s employment and promotes greater wage equality among genders; still others claim that gender does not necessarily determine whether a person will win or lose as a result of a change in trade policy. From a trade policy perspective, if trade liberalization affects men differently from women, it is important for the trade policymaker to be aware of this in the negotiation and implementation of trade agreements and in the implementation of parallel policies that will assist in the transition to freer trade, in order to avoid exacerbating inequities, in the case where gender equality is a goal, or to assist in assuring both groups a smooth transition, when gender equity is the objective.

III. Why may women and men be affected differently by economic policies?

As previously mentioned, trade creates opportunities for some, diminishes them for others. Changes in trade policy impact the price level facing consumers, the level and distribution of employment, and relative wages. This section of the paper will discuss why and how men and women may react differently as consumers, as workers and as participants in the overall economy.

Men�s and women�s reactions to change and interaction with economic structures may vary. Two main source of these differences can be identified: (1) inherent structural factors due to specific physiological characteristics; and (2) socially constructed differences that have been influenced by history, culture and perceptions.

The essential structural difference between men and women is a consequence of their respective reproductive roles. The biological capacity of women to bear children results in particular restrictions and constraints that men do not face. Motherhood causes women to need to be absent from the productive sector at the very least while giving birth and, generally, for some time to care for the offspring � in many societies operationalized as the need for maternity leave and day care. The degree to which this characteristic is a constraint on economic activity will, of course, be directed and determined by existing societal structures.

The second category of differences includes those resulting from characteristics and conceptions of femininity and masculinity, which have been derived from the biologically determined roles, creating different expectations and constraints for men and women. These, in turn, are reflected in men�s and women�s differing rights and responsibilities. For example, in places where women are seen as the primary caregivers and food providers for the household, they will tend to engage in survival activities - such as communal soup kitchens - much more than men. When women are the primary child-caregivers, their responsibilities for child rearing may limit their mobility and thus their choice of jobs. For men, if they are considered responsible for the cash needs of the household, they may be more likely to take jobs that require them to travel away from the home or to enter illegal activities in time of hardship to meet that social expectation and familial need. Although rights and responsibilities are closely interconnected, they have different consequences. Different legal and customary rights for men and women may result in differences in access to resources such as credit and financial services, to decision-making, to the judicial system.

This second aspect of gender differences causes the analysis to generally be quite different in developing and developed countries; in the latter, disparities in access to education, financing and legal rights are much lower than in the former, and gender differences in the responses to changes in economic policies less marked. However, while it is impossible to generalize across all groups, these differing rights and responsibilities, to a greater or lesser extent, have three main implications that should be taken into account by trade policymakers who are attempting to provide for a smooth transition to free trade and aim to take into account gender differences:

  • Differences in time allocation;
  • Differences in consumption patterns;
  • Differences in participation in production.

A. Differences in time allocation

Different responsibilities and priorities result in different time allocation patterns for men and women.[6] Women and men each play a double role in the economy. Both participate in the productive sector of the economy as paid workers, managers, executives, consultants. They also both participate in the reproductive sector of the economy as parents and caregivers to the family. However, this latter reproductive role is relatively much more significant for women than for men: data show that women still spend relatively more time than men as mothers and primary caregivers to their families.

Figure 1, below, roughly illustrates this difference in time allocation, showing the amount of time spent by both groups on market activities �defined as economic activities generating revenue � and non-market activities � defined by the United Nations Development Programme (UNDP) as including household maintenance (cleaning, laundry and meal preparation and cleanup); management and shopping for own household; care for children, the sick, the elderly and the disabled in their own household; and community services (UNDP 2003). In aggregate, women spend more time on work (market + nonmarket), but less of that time is spent on income-generating activities. In all cases but one, women�s total work time exceeded that of men. In Colombia, women spent 112% of men�s time on work; in Guatemala 117%; in Venezuela 106% and in the United States 105%. Only in Canada did men work more: in this case, women�s work represented 98% of men�s work time.

 

Figure 1. Men�s and women�s time allocation

Source: Authors Calculations based on UNDP Human Development Indicators 2003


This data illustrates the different time constraints facing men and women. This has important implications for the ability of each group to engage in paid economic activity. Non-market work is not remunerated, but these activities are also not easily or costlessly substituted. Although reproductive work is crucial as it ensures the continued capacity of society to engage in productive activities, it is generally uncompensated and unrecognized in economic data. Thus the opportunity cost to women of entering paid work is often improperly conceptualized. Given the greater amount of time spent on total work activities, a much larger percentage of which is non-remunerated, women can be seen as relatively �time-poor� and face different constraints in entering paid work than men. This means they will react differently than men to change, because they have greater constraints in the way in which they can allocate their labour.

There are several ways in which this factor may be affected by trade policy changes. On the one hand, women�s greater time constraints may limit the type of activities in which they can engage, making it more difficult to enter into certain types of industries if there are no clear substitutes for their non-market work. Women may not be able to access jobs that require long hours or do not have some flexibility in scheduling. They may be considered more expensive workers, potentially requiring maternity leave, day care or time off to care for sick children. These perceptions and realities apply much less to men, particularly in developing countries. On the other hand, trade policy changes could impact gender time allocation patterns. In a study done by the World Bank (2004), comparing household time allocation patterns in exporting and non-exporting zones in Ecuador, it was found that in households in the exporting zone in which both man and wife worked, the man spent twice as much time on household work as did similar men in non-exporting regions.

Women may also engage more in activities considered related to the �household� or reproductive realms � such as growing staple crops � that are unpaid activities and yet contribute directly to the household�s welfare and sustenance. A study of the agricultural sector in Mexico showed that only 15% of women working in that sector were wage-earners and 13% were self-employed, thus leaving 72% of women working without payment (Cardero 2000). Underestimating the �unpaid� productive activities of women can also lead to a skewed evaluation of the incentives and dynamics which determine production and output.

The differences in rights and responsibilities and the consequent uneven share of the paid and unpaid workloads constitute a main difference in men and women�s economic participation and in how they will be affected by economic policy changes.

B. Differences in consumption patterns

Tariff policy can certainly impact one group more than another. Raising or lowering the price of a particular good, by imposing or removing a tariff, will affect those who consume those goods intensively more than those who consume them less. As a consequence of their role as primary caregivers, women�s consumption patterns tend to differ from that of men. Studies show that women�s income is generally spent in large part on the household, in particular on food, education and health care, while a larger proportion of men�s income tends to be oriented towards leisure or personal consumption.[7] While certainly not always the case, in general, women are still more often responsible for the care-giving activities and food security of the household than men, they will be more affected by changes in prices of certain goods such as, for example, milk and milk products, primary educational materials and medicines. Table 1, below, shows an example of the current tariff rates on some basic consumer goods in one Caribbean country. This data implies that trade liberalization in this case could most likely bring real consumer welfare gains to women.

Table 1.   Consumer tariffs on selected goods

Tariff Line Level

Description

Tariff Value

Nature

Main trading Partners

702000

Tomatoes, Fresh or Chilled

224

Ad valorem

USA

704901

Cabbages

123

Ad valorem

USA

705110

Lettuce

123

Ad valorem

USA

710100

Potatoes

30

Ad valorem

Netherlands

40100

Milk and Cream

159

Ad valorem

New Zealand

Source: Inter-American Development Bank, Hemispheric Trade and Tariff Database 2004

In this example, we can see that reducing tariffs could have a potentially positive impact on consumers in terms of nutrition and health. Given that the country in this example has little if any local- production of tomatoes or dairy products the impact of tariff reduction on local producers should be relatively minimal compared to the benefit for consumers. While the impact on consumption must be weighed against the impact of reduced government revenue, for such priorities as the provision of basic public services such as transportation or health care, it is evident that this tariff structure would have the greatest impact on those responsible for family care.

C. Differences in production patterns

The differing constraints faced by women and men may also impact the economic activities in which they will engage.[8] Going back to our example of the removal of a tariff on widgets, the economic winners will be those who shift into the industries that expand as a result of the shift in relative prices. Is there a difference in men�s and women�s abilities to make this shift?

Because of their greater responsibility for reproductive work, women may be more limited than men in terms of the types of jobs they are able to take on. They may seek employment closer to home, may tend to engage in employment on a �needs� basis, making them more vulnerable to changes in the labour market, and may seek more flexible forms of employment. In turn, as a consequence of their inherent reproductive role, employers may perceive women as less reliable and more costly to hire.[9] Furthermore, women often possess lower levels of technical skills, less work experience, and sometimes lower levels of education � although this is less of a problem in the Americas, where female education tends to match or exceed that of males � resulting in less labour flexibility.[10] These factors are translated in the labour market in the form of sectorial concentration, vertical segregation and wage differentials.

  • Sectorial concentration of production

Data shows that, in general, women�s employment tends to be concentrated in certain types of activities and they may face limitations on the level and degree of earning power and stability they can achieve (Wood 1991).[11] Initial figures indicate that there are some sectors in which women are disproportionately represented; others in which men predominate. Studies indicate that trade growth in developing countries leads to an expansion in labour-intensive light manufacturing industries and a correlation has been found between the increased concentration of female workers in the manufacturing industry and export growth. Some service sectors, such as the data-processing industry, offer higher quality jobs and heavily employ women (Joekes 1999). For example, in Jamaica, the data-entry industry has provided for relatively prestigious and well-paid clerical jobs, mainly concentrated in the Digiport, an export processing zone dedicated to service industries. On the other hand, some service activities which are also very heavily �feminized� are more precarious and low-paid.

Figures from the International Labour Organization (ILO), shown in Table 2 below, suggest that, globally, both men�s and women�s participation in the economy is tending to shift towards the services sector. While true for both genders, women�s concentration is noticeably greater.

TABLE 2 � Sectoral concentration of men�s and women�s employment

 

Year

Men

 

Women

 

Country

Agriculture

Industry

Services

Agriculture

Industry

Services

 

 

men

total

men

total

men

total

women

total

women

total

women

total

Chile

1980

26%

19%

30%

22%

44%

33%

6%

2%

14%

4%

80%

21%

1990

24%

17%

30%

21%

46%

32%

6%

2%

15%

4%

79%

24%

Costa Rica

1980

43%

34%

23%

19%

34%

27%

5%

1%

20%

4%

75%

16%

1990

34%

24%

27%

19%

39%

28%

6%

2%

26%

7%

68%

19%

El Salvador

1980

56%

41%

20%

15%

24%

18%

9%

2%

18%

5%

73%

19%

1990

50%

34%

22%

15%

29%

20%

7%

2%

19%

6%

74%

23%

Jamaica

1980

42%

23%

23%

12%

35%

19%

18%

8%

9%

4%

73%

34%

1990

34%

18%

32%

17%

34%

18%

14%

7%

13%

6%

72%

33%

Mexico

1980

43%

31%

30%

22%

28%

20%

19%

5%

28%

8%

53%

14%

1990

35%

24%

25%

18%

40%

28%

11%

3%

21%

6%

68%

20%

Paraguay

1980

58%

43%

20%

14%

22%

16%

8%

2%

22%

6%

70%

19%

1990

51%

37%

23%

16%

26%

19%

7%

2%

20%

6%

72%

20%

Trinidad & Tobago

1980

12%

8%

45%

31%

43%

29%

8%

3%

25%

8%

67%

21%

1990

14%

10%

39%

27%

47%

32%

5%

2%

17%

5%

77%

24%

Source: International Labour Organization, Laborstat

The proportion of women�s employment in the agricultural sector in regard to the total labour force has decreased overall; similar results are seen for men�s share. In terms of men�s and women�s employment, the industrial sector has not changed very significantly although it seemed to have been diminishing, as can be seen in the numbers for Mexico. The services sector has gained the most, particularly in Mexico, where in 1990, 68 percent of women worked in this sector, and where women working in the services sector now represent 20 percent of the workforce; with men working in services comprises 29 percent. Looking at the sample, over 70 percent of the female workforce in Chile, El Salvador, Jamaica, Paraguay and Trinidad and Tobago are employed in the services sector. It is, however, difficult to know what this means. The term �service sector� is very broad and encompasses a variety of activities, ranging from hotel or restaurant workers to domestic workers. Obviously, the characteristics and quality of these �service� jobs varies widely, as well as the share of female and male employment in each subsector.

While broad trends can be seen, the lack of disaggregated gender-specific data often limits the ability to glean gender-specific impacts. In order to better be able to understand the impact of this trend on the quality of male and female employment, it is necessary to better explain the underlying data, particularly an indication of what makes up different sectors. For example, in the case of agriculture, it is said that women tend to constitute a very large share of the workers in non-traditional agricultural exports (NTAEs) such as cut flowers or in the fruit and vegetable exports. In Mexico, 80 to 90 percent of the workforce in the vegetable production sector is female, mostly temporary or seasonal. In Brazil, in the fruit sector, 65 percent of the labour force is female while in the cut flower industry of Ecuador, 70 percent of the labour force is female (Dolan and Sorby 2003).

While the distribution of the labour force by gender across sectors is one useful indicator for policymakers to consider during the transition to free trade, the case of Panama (below) illustrates the difficulties of making generalizations. Figure 2 shows that the majority of employees in the Food and Beverages sector are men, while women predominate in the Apparel sector.

Figure 2Distribution of employment, by gender

Source: International Labour Organization, Laborstat

At first glance, then, policymakers could assume that women would be hurt disproportionally if trade liberalization were to diminish the apparel sector. Figure 3, below, however, shows that the Food and Beverages industry actually represents 50% of total female employment in manufacturing, and the Apparel sector constitutes 23% of total female employment in manufacturing. Thus, even though women make up 80% of the Apparel sector, more women � as well as men -- would in fact be affected by dislocation in the Food and Beverage sector.

Figure 3.  Distribution of women�s manufacturing employment, Panama

Source: International Labour Organization, Laborstat

Finally, another factor to take into account is the growth of the sector. The Food and Beverage sector has gained in importance for women over time while the Apparel sector has diminished. This indicates that the effect of policies on the food sector should be carefully assessed and also that attention should be paid to workers in the apparel sector in terms of what they may be able to do as employment in that sector diminishes over time.[12]

Many elements may come into the assessment of the impact of policies on any given sector at the aggregate level (agriculture, manufacturing, services) and at the disaggregated industry level. Furthermore, other factors may come into play, such as the degree of transferability of skills, the relative quality of new job opportunities compared to those existing previously, and the sustainability of the new industries. Women employed in export manufacturing typically earn more than they would in traditional sectors (World Bank 2004, p.1). This is most likely also true of women previously working in the informal sector. In many countries, a large share of women and men work in the informal sector. According to ILO data, in Brazil an estimated 43 percent of women and 28 percent of men worked in the informal sector; in Peru, estimates set 66 percent of men and 77 percent of women as informal employees (International Labour Organization 2002).[13]
Women�s concentration in the informal sector is explained by the fact that it provides for easy entry, given the low level of skills and capital required and that the flexible hours and often home based employment are compatible with women domestic responsibilities. However, if the informal sector has some advantages for women, it remains unstable and yields small incomes, offers disadvantageous bargaining positions, less formal organization and fewer commensurate benefits, such as pension benefit (Mayoux 1995).

  • Vertical segregation of production

The concept of vertical segregation refers to the manner in which men and women are distributed by type of job within the same occupation. Often, one sex is more likely to be at a higher grade or level than the other - for example, as Anker (1998) points out, �men are more likely to be production supervisor and women production workers, or men senior manager and women junior manager.� Studies show that women tend to be concentrated in lower-level positions, typically those not involving decision-making or managerial skills, and also in more administrative positions.[14]  The reasons behind occupational segregation are multiple, but can be seen as stemming from three main factors: difference in skills, training or experience; perceptions regarding appropriate activities for women and perceptions of women�s reliability in the workforce; and women�s own demand for more flexible forms of employment.

Even in activities that employ a very large share of female labour � such as those in the non-traditional agricultural export industry � the distribution of male and female workers in different positions is noticeably sex-segregated. This clear occupational segregation is largely determined by perceptions of female qualities (such as dexterity and patience) and male qualities (such as physical strength and mechanical skills). In the cut-flower industry, for example, women usually perform the tasks of �weeding, tying plants, pruning, cutting, picking and packing� while men are involved in �pre-cultivation, irrigation, fumigation, construction and equipment maintenance� which are tasks that involve more mobility and more technical knowledge (Dolan and Sorby 2003, p.33).

A World Bank study on the export-oriented manufacturing sector in Bangladesh found that as a result of the development of the export sector, more women were employed. However, those employed in the export sector were found to be no better off than those employed in non-export industries. Women in export industries earned less than their male counterparts, their likelihood of being in the upper-level positions was lower, as well as their likelihood of being promoted. Over time, male workers� wages increased much more rapidly than female workers� and even in activities that were dominated by female workers, such as assembly line work, supervisors were typically male. Female workers in the garment industry earned 58 percent of male�s wages[15] and the wage gap had increased over time, from 66 percent in 1990 to 50 percent of male�s wages in 1997. The sewing section is dominated by female workers (57 percent), yet managerial positions in the section are predominantly occupied by men (91 percent). In the cutting section, which is the best paid; men dominate all positions (90 percent) (Paul-Majunder and Begum 2000).

Vertical segregation of this type results in women being in relatively more precarious positions. Data from Mexico, set out in Table 3. illustrate this point. The rate of increase of employment in the maquiladora sector has slowed down since 1997, and has actually been negative in 2001 and 2002. While both men�s and women�s employment has followed the trend, women�s share of employment has grown less rapidly than men�s, as women, who occupy lower positions are more easily replaced or dismissed and tend to be the laid off first in times of economic slowdown.
 

TABLE 3 �  A closer look at the maquila sector in Mexico

Period

Total workers

Annual % variation

Maquiladora Workers

Men

Annual % variation

Women

Annual % variation

1995

648 263

11.2

217 557

12.7

314 172

10.6

1996

753 708

16.3

257 575

18.4

359 042

14.3

1997

903 528

19.9

312 457

21.3

422 892

17.8

1998

1 014 006

12.2

357 905

14.5

465 656

10.1

1999

1 143 240

12.7

408 432

14.1

514 444

10.5

2000

1 291 232

12.9

468 695

14.8

576 706

12.1

2001

1 198 942

- 7.1

432 340

- 7.8

524 929

- 9.0

2002

1 071 209

- 10.7

389 435

- 9.9

463 149

-11.8

Source: Mexico- INEGI

Finally, vertical segregation impacts on the possibility for women to acquire new skills and training and thus improve their employment perspectives. As the gender segregation of occupation in some industries tends to result in having women largely concentrated in activities deemed �unskilled� while men are seen as �semi-skilled� workers, women who are concentrated in �low-skill� tasks that, for example do not require using machinery, may not undergo training. When differences in occupations stem from perceptions and prejudices, they may result in inefficiencies as potentially skilled or capable workers are not assigned positions where their capacities would be best utilized.[16]

  • Wage differentials

Another clear gender difference between men and women in productive activities is that, in the aggregate, women typically receive lower wages than men for equal work. Table 4 gives some indication of this situation, which is referred to as the �gender wage gap.�

TABLE 4 � Gender wage gap by educational level � Latin America

 

Period

Women�s� wage as a percent of Men�s wage
by educational level

 

 

0 to 5

6 to 9

10 to 12

14 and more

Mean

Early 1990�s

63%

67%

81%

69%

Late 1990�s

73%

71%

77%

73%

Source: World Bank

While this wage gap has decreased at almost all levels of education, women�s wages having increased on average from 70 percent of men�s wages in the early 1990s to 74 percent of men�s wages in the late 1990s, the wage gap still remains significant. It is important to note that a great variation exists between countries, indicating that the issue may have been better tackled in some cases than in others.

The terms of the �narrowing� of the gender wage gap are very important to assess because they can determine whether the narrowing has brought welfare gains, and for whom. However, in terms of the specific impact of trade liberalization on the gender wage gap, no consensus exists. Box 1 below provides a snapshot of some of the existing approaches to the question. This lack of consensus reflects the difficulty in disentangling the effect of trade liberalization on wages from the effect of other policies or other events, such as devaluation, tax reform, change in values and perceptions or other changes in legislation.

Trade Liberalization and the Gender Wage Gap � a few studies
  • Black, S. & Brainard, E. Importing Equality? The Effects of Increased Competition on the Gender Wage Gap. Federal Reserve Bank, New York: Trade could possibly lead firms to reduce discrimination against women because increased competition would make the cost of discrimination too high. Thus with increased trade, the wage gap between men and women would be reduced. But would this be through an upward or downward adjustment?
     
  • Armstrong, P. in Isa Bakker (ed.) Rethinking Restructuring: Gender and Change in Canada. Toronto: University of Toronto: Case-study of Canada in the early 1990�s: narrowing of gender wage gap was accompanied by an absolute drop in male average earning. This had negative implications for women as well, as �there is more pressure on women to provide economic support for their families� given the relative loss of household income due to the decrease in male wage. This constitutes an example of �downward harmonization� with men�s wages actually lowering towards women�s rather than the opposite. However, the study concluded that the drop in wages wasn�t primarily due to increasing competition from women but from economic restructuring which entailed a decline in male-dominated occupations.
     
  • Paul-Majumder, P. & A. Begum. 2000. The Gender Imbalances in the Export Oriented Garment Industry in Bangladesh. Policy Research Report. Working Paper series n.12. Washington: World Bank. �The Gender Imbalances in the Export Oriented Garment Industry in Bangladesh�: In Bangladesh, the gender wage gap has actually widened over time in export-oriented industries.


PART IV. Trade policy: trade agreements and gender equity

Trade has played an important role in the economic development model of countries of the Americas. Trade makes up a significantly larger component of GDP than in previous decades, and countries are working to gain even greater access to external markets and to enhance their insertion into the international system through bilateral, regional and multilateral trade arrangements. Countries in the Americas have participated actively in the growth of trade and trade commitments taking place over the last decade and a half, undertaking significant measures to unilaterally liberalize their trade regimes at the national level, participating in market-opening trade agreements at the regional and bilateral levels, and obligating themselves to further open their trade regimes at the multilateral level through WTO commitments and negotiations. Tariffs in Latin American countries have fallen and been rationalized,[17] the use of non-tariff measures has been addressed in various trade agreements, and domestic regulatory regimes revised so as to provide a friendlier environment for trade and investment. Previously protected markets have been opened up and trade disciplines made more compatible among countries, giving foreign firms increasingly the same access to markets as enjoyed by domestic ones.

Modern trade agreements, roughly defined as those signed after the completion of the Uruguay Round in the mid-1990s, include liberalization of border barriers but also go further, addressing issues previously reserved for domestic regulators such as services, investment, intellectual property rights, and competition policy. Since the mid-1990s, bilateral trade agreements have proliferated significantly among countries of the Americas.

Trade agreements in the Americas have as their objective the expansion of trade and investment and the establishment of a framework of predictable rules for conducting business. As stated in their preambular language, most trade agreements also aim, through this opening, to enhance competitiveness, expand jobs and improve working conditions and living standards in their countries.[18]  Issues not previously addressed in legal trade texts have of late been included in trade agreements � for example, the North American Free Trade Agreement (NAFTA) and subsequent trade agreements negotiated by Canada and the United States include language on labour and on the environment. Additionally, governments have increasingly undertaken studies assessing the impact of trade agreements on the environment, on different sectors of society, and on the economy as a whole. Appendix I sets out language on gender included in trade agreements signed by OAS Member States.

Over time, various civil society groups and NGOs, along with international organizations working on the issue, have called for trade negotiators to take gender into account in their negotiations. While the launch of the Decade for Women by the United Nations in 1985 can be seen as the beginning of the acknowledgement of the relevance of gender concerns by a wide array of actors, the link between gender and trade liberalization was not immediately emphasized, and other issues such as education, healthcare and literacy were first examined through the gender prism. The 1995 United Nations Fourth World Conference on Women in Beijing � and the spur in academic research, activist mobilization and government awareness it generated- gave the impulse for a large section of the literature on gender and trade, and this literature has been developing since then, exploring a variety of aspects linked to trade liberalization. As trade liberalization has come to encompass areas much beyond the simple reduction of tariffs, so has the literature, exploring the implications and interconnectedness between issues such as services liberalization, agricultural liberalization, intellectual property rights regulations, labour mobility, environmental sustainability, as well as labour rights. However, despite the increase in studies, the tools to operationalize concerns about gender equity, have not yet been fully developed.

While many groups seeking to incorporate elements of gender equity into trade policy have focused strongly on incorporating gendered language in the text of trade agreements, trade policy includes much more than the text of the agreement. The actual implementation of trade measures is done through domestic policy reform. Preparations for negotiations include assessments of sectoral and overall economic needs and potential. Implementation of trade negotiations often is done in conjunction with supplementary reforms and technical assistance projects. All of these phases could be strong candidates for addressing gender concerns.
 
A. Trade policy: impact studies

Increasingly, governments are carrying out ex-ante assessments of the potential impact that trade agreements may have on various sectors of their societies and economies. Particular emphasis has been placed on the environmental impact, as well as the effect on specific sectors. While gender does not figure as a specific component of most of these assessments, these studies provide important information on the impact on particular sectors and on the overall economic affect.

In the United States, for example, the U.S. International Trade Commission (USITC) conducts an investigation of the potential impact of each trade agreement negotiated or entered into by the United States. These impact assessments, which often use Computable General Equilibrium (CGE) analysis and cover a large number of sectors, are organized according to the issues covered within the agreements.[19] The Government of Canada, since 1999, has conducted environmental assessments of each of the trade agreements it is negotiating [20]  and has developed a thorough methodology for doing so. Recently, Canada has also commissioned consultations with civil society and a study on both the environmental and labour aspects of its negotiations with the CA4, thus taking a more inclusive approach to its assessment of its current negotiations.

The European Union (EU) also carries out assessments, named Sustainable Impact Assessments (SIAs)[21], that differ from the above experiences in that they are conceived as integrated assessments of potential impacts in economic, environmental and social terms, not only on the EU but also its partners� economies. They explicitly examine the social impacts of trade agreements and specific attention is paid to gender under that header in the studies. For example, in the recent SIA reports by the EU Commission prior to its negotiation of the EU-Chile Free Trade Agreement, it is stated that �[t]he comparison of the sustainability impacts is established on the basis of sustainability indicators. These indicators cover the economic, social and environmental fields. The impact of the trade agreement is assessed for each indicator in relation with several significance criteria: magnitude, pre-existing situation, equity, reversibility and capacity to change. Particular issues paid attention to include economic growth, natural resources stocks, pollution, equity, gender and indigenous people issues� (Planistat - Luxembourg 2002).

The EU-ACP Agreement also provides a sector-by-sector analysis of the partner economies, and special attention is paid to environmental and �social� issues, including gender impacts, under Chapter 3 �Sustainability issues� (PricewaterhouseCoopers 2004). Finally, EU Regional Strategy papers also include gender elements, such as in the EU-Central America regional strategy paper 2002-2006 which states: �The strategy proposed by the EC regarding Central America is aimed at [..] supporting efforts towards economic and social development. In supporting existing common policies, linking rehabilitation and sustainable development, this strategy must also take into account the need to promote equal access for men and women to political, social and economic development� (European Commission 2004).

Rigorous studies utilizing a systematic approach to separate out the gender effects of proposed trade policies, examining all relevant factors, including those examined in this paper, would provide a significant contribution to assist trade policymakers in assessing the impact of trade policy changes. There is a real need for the future research agenda to include the collection of sound data and the development of sound methodology for assessing the gender impacts of trade policy.

B. Trade policy: negotiation of trade agreements

Several trade agreements, particularly those signed after the passage of the North American Free Trade Agreement (NAFTA), have come to include provisions, often in side agreements, aimed to strengthen the development and enforcement of environmental laws and regulations and to protect, enhance and enforce basic workers' rights. In keeping with this trend, gender issues are also increasingly being incorporated into the texts of trade agreements, often within the framework of cooperation on labour issues.

The EU has been the most active in including gender aspects as part of the trade framework, both in its own internal agreements and their implementation and in agreements with third parties.[22] In terms of agreements with countries of the Americas, while the EU-MERCOSUR Integration Framework Agreement of 1995 referred only to the promotion of �regard for social development, particularly the promotion of fundamental social rights,� the Political Dialogue and Co-operation Agreement between the European Community and the Andean Community countries, signed in October 2003, which serves as the framework for trade liberalization, makes multiple references to the need to promote equal treatment and opportunities for men and women, to respect their commitment to ILO conventions, to respect and promote the human rights of men and women, as well as the need to promote positive measures in favour of women.[23] Other EU agreements contain similar text.[24]

Language on gender equity is also found in trade agreements among countries in the Americas. This language can be seen in the table contained in Appendix I. One of the earlier agreements to include such references was the NAFTA, which was signed in 1992 and came into force in 1994. In this text, reference is made, within the side Agreement on Labour Cooperation, to gender equity in the workplace which includes the elimination of employment discrimination, including on gender grounds, and equal pay for men and women as two of the �guiding principles that Parties are committed to promote.�[25] Other free trade agreements include similar language. The 1996 Canada-Chile Side Agreement on Labour Cooperation has a reference to the �equality of men and women in the workplace,�[26] and the US-Central America-Dominican Republic Free Trade Agreement (D.R.- CAFTA), signed in August 2004, makes mention of gender issues in its annex on labour cooperation and capacity building mechanisms.� [27]
 
Likewise, the Hemisphere�s Customs Unions all include language on the promotion of opportunities for women, with a view to gender equality. The Andean Community�s revised Cartagena agreement includes language promoting the participation of women, and CARICOM urges increased participation of women in social and economic activities. MERCOSUR language goes further, with a Common Market Group resolution urging all MERCOSUR entities to take into account the issue of gender in their activities, with a view towards promoting gender equity and equality.[28]

This latter approach � addressing the issues of gender outside of the legal text of the trade agreement, as part of the parallel process of activities and discussions surrounding the organization and implementation of these trade commitments � is part of the effort to include gender concerns in trade policy-making. It can be seen as a means of �mainstreaming� gender into trade activities, and this is also the approach followed in the Asia Pacific Economic Cooperation Forum � or, as it is more commonly known, APEC. APEC, whose 21 members include five countries of the Americas � the United States, Canada, Chile, Mexico and Peru � has actively sought the mainstreaming of a gender perspective in all its activities. APEC is by nature different from free trade agreements such as those mentioned in the previous paragraphs, or from organizations such as the WTO. It is a forum to encourage trade liberalization, through the implementation, through individual action plans, including domestic measures, geared towards trade and investment liberalization by member states.

While the trade liberalizing initiative in APEC is not done through an institutionalized framework � members are not required to enter into legally binding obligations � APEC does include an organized structure of working groups and committees. Within APEC, gender is seen as a cross-cutting issue, which is overseen by a �Gender Focal Point Network� or GFPN, which reports to the SOM (Senior Officials Meeting) and is in charge of monitoring and facilitating the integration of gender in APEC�s activities. This implies encouraging gender training of officials and specialists; ensuring that funding requests and projects respond to gender criteria; encouraging participation of women in APEC fora and projects, etc. The GNFP is also in charge of working with member economies to strengthen women�s participation in these economies, to provide gender training and expertise and to encourage the gathering and use of gender disaggregated data. Finally, the GFPN serves as a means of communication between fora and member economies as well as with the Secretariat and the Senior Officials, to whom it reports.

C. Trade policy: beyond trade agreements


While trade agreements are important instruments for opening markets and can have positive auxiliary effects in terms of domestic market reform, transparency, and increased cooperation, steps taken at the domestic level form an important basis and determine an economy�s successful insertion into the global economy. This is especially true in Latin America, a region that has carried out far-reaching reforms over the past decade in terms of economic stability and democratic governance, but currently still faces major challenges in these areas.

The instruments of trade policy include the variety of measures aimed at removing trade distortions and increasing a country�s integration into the world trading system. These include measures as wide ranging as domestic regulations, institutional reform with a view to increasing the efficiency of institutions to support entrepreneurial activities, infrastructure reform designed to improve efficiency, measures to improve human capital and boost labour force productivity, initiatives to create and assimilate knowledge about technology and to enhance the capacity to utilize that technology.

It is also at this level that gender equity and gender equality concerns are most relevantly addressed. While trade policy effects may coincide with some gendered results, it is evident that trade is not the cause, but rather a catalyst for these effects. It is widely recognized in the economics literature that the most effective way to remedy a distortion is to address the cause of that distortion directly. Thus, an inherent inequity resulting from a domestic structure cannot be remedied by language in a trade agreement. The source of the problem must be identified and remedied. However, it must be recognized that while trade may not be itself biased against a particular gender, or �gendered,� trade policies may have gendered impacts on societies due to the existence of gendered social structures and thus may act as a �magnifying glass� and worsen existing disparities. As such, parallel activities designed to assist in the transition to free trade may effectively incorporate elements designed to mitigate this exacerbation.

While these gender equity issues do not arise from trade liberalization, they may, to an extend, be able to be addressed as countries prepare for the transition ot free trade. If, for example, in a particular country, it is known that women are underrepresented in the more competitive economic sectors, programmes may be developed to assist women entrepreneurs to gain entry into this sector. Such programmes could be tailored to the needs of these particular people, taking into account their time constraints, for example, their skill level and previous experience. At the same time as conducting targeted retraining programmes, the government could also look to the slightly longer-term, placing emphasis on training women in more technical skills in order to help them move up the skill ladder, and schools could be oriented to become more forward looking in developing the skills of girls, for example by focusing on teaching them more math, science, and computer skills, elements traditionally not emphasized in female education.

Studies, notably those conducted by the World Bank, show that there is empirical evidence that the gender-based division of labor and the resulting inequalities slow development, economic growth and poverty reduction. Gender inequalities often lower the productivity of labor, both in the short and long term, and create inefficiencies in labor allocation in households and the economy at large. They also contribute to poverty and reduce human well-being. As such, countries, in their effort to meet their stated goal of increasing welfare through trade, could gain real benefits from taking into account the gender differences existing in their countries, when formulating their strategies for maximizing their benefits from free trade.

  • Trade capacity building initiatives

Recently, in their trade agreements, trade policymakers have begun to explicitly recognize the importance of activities undertaken in parallel to the trade negotiations that are designed to assist countries to better take advantage of the eventual agreement.

This recognition was operationalized in the Free Trade Area of the Americas (FTAA) negotiations, through the creation of a Hemispheric Cooperation Program (HCP), [29] announced at the seventh FTAA Ministerial Meeting held in Quito, Ecuador in November 2002. The HCP�s purpose is to �strengthen the capacities of those countries seeking assistance to participate in the negotiations, implement their trade commitments, and address the challenges and maximize the benefits of hemispheric integration, including productive capacity and competitiveness in the region� (Quito Ministerial Declaration, paragraph 18) and includes �a mechanism to assist these countries to develop national and/or sub-regional trade capacity building strategies that define, prioritize and articulate their needs and programs pursuant to those strategies, and to identify sources of financial and non-financial support.� These needs are to be identified as follows: assistance needed to support the negotiation of the agreement; assistance in the implementation of the agreement; and assistance to countries in the transition to the FTAA.

The importance of this third element � assistance to countries in the transition- was recognized once again by Ministers at their eighth Ministerial meeting, held in Miami in November 2003, where they stated that �[w]e recognize that trade can play a major role in the promotion of economic development and the reduction of poverty. Therefore, we underscore that the commitment of countries to integrate trade into their national development plans, such as Poverty Reduction Strategies, is central to ensuring the role of trade in development and securing increased trade-related assistance in the region.� They called upon their vice ministers and the Tripartite Committee �the Organization of American States (OAS), Inter America Development Bank (IDB) and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) � to undertake a number of steps that will �constitute a beginning to the process of enhancing the capacity of the countries that are seeking assistance to complete negotiation of the FTAA Agreement, prepare to implement its terms, and to enhance their capacity to trade, and successfully adapt to integration.�

The HCP has begun to be implemented. Countries, with the support of the Tripartite Committee, have undertaken extensive consultations with national stakeholders to determine their broad needs and to set these out in specific project profiles. Various projects addressing specific needs have been implemented.

Trace capacity building was also given prominent place in the negotiations towards, and was included in the text of the Dominican Republic � Central America � United States Free Trade Agreement (DR-CAFTA). Chapter 19 on Administration of the Agreement and Trade Capacity Building recognizes that �trade capacity building assistance is a catalyst for the reforms and investments necessary to foster trade-driven economic growth, poverty reduction, and adjustment to liberalized trade� (DR-CAFTA 2004). Similar language is included in the draft text of the U.S. � Peru Trade Promotion Agreement. The summary of the U.S. � Colombia agreement indicates that this agreement will also include �programs for small and medium-sized enterprises and rural farmers, and programs for improvements in the transportation infrastructure and telecommunications, to assist Colombia in implementing the obligations of the agreement and more broadly benefiting from the opportunities it creates� (USTR 2006).

The activities described in the project profiles of the FTAA�s HCP, and those identified in the DR-CATA�s National Action Plans, can be roughly grouped into the categories of institutional reform, infrastructure development, private sector development, and human capital strengthening. Gender considerations could be included within these project profiles and under these four categories as a means to tackle existing gender inequalities at the domestic level, with the help of the donor community and with the perspective of maximizing the benefits of trade liberalization. The gender component in project profiles could furthermore be inspired by other projects that have been carried out previously.

Institutional and regulatory framework - Commitments made under the WTO agreements and the implementation of eventual FTAA obligations necessitate that countries to modernize their legal and regulatory structures and strengthen their institutional and administrative capabilities. Institutional reform goes hand in hand with the steps policymakers have taken towards implementing stable macroeconomic policies --- for example, policies aimed towards maintaining a stable real exchange rate, policies to discipline the budget and external deficits, and stable monetary policies --- to create an enabling environment for private sector growth and to better a country�s investment climate.

Institutional reform can play a significant role in the success of trade policy reform. Efficient, transparent, credible institutions minimize transactions costs and foster an environment conducive to doing business. A priority of governments as they make the transition to free trade is often that of upgrading the quality of institutions that play a particular role in trade, such as customs administration, taxation, banking and financial supervision, enterprise registration and monitoring, investment promotion and others that directly impact the result of reform. Of prime importance is the legal framework, including effective law enforcement and increased administrative efficiency.

In this context, preparing for the transition to free trade, may afford countries the opportunity to analyze their legal framework concerning labour legislation to ensure that men and women face equal terms in their labour market participation. A non-discriminatory labour market will serve as a step towards gender equity as well as towards economic modernization. Similarly, revising and simplifying the processes for creating small and micro-enterprises, reducing disincentives to small entrepreneurs, could serve to boost competitiveness as well as increase access to groups who previously were not able to start a business � in many cases, this could include women. In keeping with this, the means of disseminating information regarding the legal framework for operating a business could be re-examined to ensure that it reaches even rural women or those with less access to the formal channels of information.

Finally, to ensure the coherence of national policies at all level and facilitate the taking into account of gender specific needs, countries may require assistance in �mainstreaming� gender in their administrations and in providing training for their civil servants. For example, Argentina has established a partnership with the Inter-American Development Bank to help finance the strengthening of the institutional capacity of the offices in charges of �women�s issues� at the federal, provincial and municipal levels. [30]

Infrastructure improvement - A functioning physical infrastructure is essential to conducting the flow of goods and services. Infrastructure includes transportation infrastructure such as roadways and ports, energy infrastructure, but also quality assurance and testing infrastructure, and information technology and communications infrastructure. Infrastructure is key to unable both men and women to participate in the productive sector. However, because of the time and spatial constraints women may face, well-functioning infrastructure becomes all the more important. In this regard, projects to improve roads and public transportation or to facilitate access to � for example - financial services can bring significant improvements for women. Similarly, childcare infrastructures are also essential, whether through neighbourhood cr�ches or on-site facilities.

Private sector development. In order to be able to participate effectively in the international economy and to take advantage of the opportunities offered by the transition to freer trade, such as those created by the implementation of an eventual FTAA, countries will need to upgrade their productive capabilities, increase product quality and enhance the private-public policy dialogue. In many countries that have liberalized relatively recently and do not have a long history of active private sector participation of the international economy, there may be a strong need for support in developing the infrastructure for and capacities of entrepreneurs to take advantage of external markets. Such initiatives could include the formation of agencies or bodies to help firms export; government provision of matching grants or favourable trade financing for firms that export; duty drawback or temporary admission regimes; provision of information on foreign markets; support for small businesses to help them continue their activities in the face of increased competition and to promote the competitiveness of firms.

Projects to upgrade the technology of small firms have proven very successful. One concrete example is that of Ecuador, where the United Nations Industrial Development Organization (UNIDO), the government of Norway and a local foundation el Centro de Desarrollo Integral y Endogeno de la Mujer partnered to upgrade the technology used by a small, women-owned, chocolate producing firm, La Carmela. As a result of the introduction of state-of-the-art machinery and of the re-training of the personnel, La Carmela�s production has increased in quantity and quality and is now producing �top-class� chocolates which could compete with those produced in the USA or Belgium (United Nations Industrial Development Organization 2003). UNIDO carried out similar projects in other countries, such as in Brazil where it contributed to improve the textile and garment industries competitiveness by introducing computer-aided design and manufacturing (United Nations Industrial Development Organization 2005). Such specifically-targeted projects can assist in boosting small businesses and enabling them to participate in the world economy.

The creation of networks can also be a successful strategy to help small firms benefit from liberalization. Female entrepreneurs statistically tend to have smaller businesses and to be less formally organized. Programs could be developed that take this fact into account that specifically reach out to them and address their needs, could help mitigate women�s under-representation in typical fora such as Chambers of Commerce.

Human capital development. A key component in determining a country�s success in a competitive international market is the development and strengthening of human capital. People need to be trained to be competitive: a literate, educated, capable workforce can serve to attract quality investment and to advance higher value-added activities. Human capital development activities includes basic and targeted training, including training oriented towards building capacity for the workforce to absorb new technology; programmes designed to enhance innovation; and trade capacity building to assist countries to undertake and implement new trade commitments, especially in areas such as customs procedures, TBT and SPS, enforcement of intellectual property rights, development of competition policies and so forth. In addition, in preparing for the transition towards free trade, targeted retraining programs for sectors that may experience dislocation as a result of trade liberalization are of pirme importance.

In order to ensure the effectiveness of activities undertaken in this sphere, policymakers must ensure that the types of policies and programmes enacted met the needs of the population. Here, taking gender into account can strongly contribute to the success of the activity. For example, if it is known that a large percentage of microentrepreneurs in manufacturing are women, it is likely that this group of people will have had less technological training and have received less information about issues related to globalization than male entrepreneurs, and may need to spend more time catching up in these areas. Second, trade adjustment programmes can be tailored to meet the needs of men and of women. For example, when providing training programmes to retool worker�s skills, taking into account that the time at which they are held may determine their success: a main caregiver, usually a woman, will find it difficult to attend classes during the time that the family needs to be fed.

There have been several programs aimed at entrepreneurs. For example, the IDB and UNCTAD have partnered for a three-year capacity-building programme for El Salvador, Guatemala and Panama whose general objective is to create sustainable capacity for entrepreneurship promotion and is focused on making extra efforts to reach out to women entrepreneurs, university graduates, and technology-based entrepreneurs (UNCTAD-IDB Partnership for Central America and Panama. 2003). Another program is that of the government of Mexico, which, as part of its campaign �More and Better Jobs for Women�, in cooperation with the ILO Gender Promotion Unit (GENPROM), has launched in initiative in the state of Guerrero to train 400 women in the urban informal sector in entrepreneurship skills as well as improve their knowledge of the financial system and of the opportunities that are available to them for technical training (International Labour Organization. 2003b).

Thus, some programmes may specifically target women but others can also be very successful if potential differences between men and women are acknowledged and taken into account in the designing of the training programs.

The four main domains examined above give examples of areas in which project profiles could be drawn and some of examples mentioned could serve as basis for programs within the framework of trade agreements� technical capacity building programmes. These capacity building programmes, such as the FTAA�s HCP, can indeed constitute a logical mechanism for countries that may benefit from trade capacity building or technical assistance in addressing promoting gender equity and equality goals. In fact, within the context of the FTAA, a number of countries have already expressed needs in the area of gender or in the area of promotion of women in their Trade Capacity Building Strategies.[31] While the FTAA has not yet been completed and there is no indication whether gender equity or equality will be addressed in the text of the negotiations.[32]

For example, within the HCP program, Colombia has taken advantage of this mechanism to request assistance in the design and implementation of a programme that takes gender considerations into account, with specific project requests in leadership training for female entrepreneurs and skills training for female workers (Free Trade Area of the Americas 2003a, p.9). In their project profiles relating to microenterprises, both Antigua and Barbuda and El Salvador recognize the multiplier social and economic impacts of the high concentration of women in this sector. Antigua and Barbuda makes mention of the concentration of women in the sector in a project profile on assistance to small farmers in the transition to free trade (Free Trade Area of the Americas 2004, p.49) and El Salvador reflects the importance of female participation in a profile requesting assistance for a national bond programme (Free Trade Area of the Americas 2003b, p.71).

Honduras has developed a project profile for a project entitled �Support for Women Micro-Entrepreneurs� whose aim is to �[e]nhance the administrative capacity of women handling micro-enterprises, provide training to improve the quality of their production, advice on how to use distribution channels, and financing to support their efforts so as consolidate subsistence micro-enterprises and make it possible for them to expand or transform their operations� (Free Trade Area of the Americas 2003c, p.45).

As such, the Hemispheric Cooperation Programme, which is an ongoing program, could serve as a vehicle for countries to address their goal to benefit as much as possible from trade liberalization and to promote greater gender equity. Within the bilateral trade agreements, capacity building committees could serve this same purpose. At the multilateral level, this issue is sure to be a component in the discussions of trade-related technical cooperation and aid for trade (World Trade Organization 2005).

V. Conclusions

While trade is not the cause of gender differentials, it may act as a magnifier to existing disparities. Evidence suggests that in many cases men and women are affected differently by changes in trade policy. This is in large part due to the different domestic constraints confronting men and women. In general, particularly in developing countries, it has been found that women have greater constraints to taking advantage of the opportunities than men do. Due to their greater role in the reproductive sector, they tend to be more time-poor than men, and have less flexibility in terms of mobility than men do. This implies that technical assistance activities and programmes to promote women entrepreneurs will need to really take this factor into account in order to be successful. Women and men tend to be concentrated in different industries. In order to successfully plan for a smooth transition to free trade, policymakers must be aware of the impact on industries, of the composition of the labour force, in order to be able to tailor assistance to workers in declining industries. Women and men tend to work at different levels of the same industry, and women in general receive less pay for similar work than men do. While the education level of women and men in the Americas is equal or, in various cases, better for women, women tend, on average, to have lower technical skills than men, which makes them less flexible in moving across jobs and in moving to higher quality jobs. As countries move up the value-added chain, targeting technical education for women would assist them in more effectively utilizing their resources.

Empirical and anecdotal evidence indicates that gender-based labor inequalities slow development, economic growth and poverty reduction, lower the productivity of labor, and create inefficiencies in labor allocation in households and the economy at large. As countries prepare for further trade liberalization, for example, through trade capacity-building programmes, efforts could be made to target industries that employ women intensively and implement skills-building programmes. As such, countries, in their effort to meet their stated goal of increasing welfare through trade, gain real benefits from taking into account the gender differences existing in their countries, when formulating their strategies for maximizing their benefits from free trade.
 


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Appendix I. Provisions in Trade Agreements with References to Gender

Name  Direct reference to gender equality Indirect reference to gender equality*

Multilateral Trade Agreements

WTO

  Doha Ministerial Declaration � Paragraph 8

We reaffirm our declaration made at the Singapore Ministerial Conference regarding internationally recognized core labour standards. We take note of work under way in the International Labour Organization (ILO) on the social dimension of globalization.
...

Regional Association Agreements

Andean Community

Cartagena Agreement � Article 130
For the purposes indicated in the previous article, the respective Ministers of the social areas, meeting as an Enlarged Commission, shall adopt the following in the fields of community interest:

g) Policy harmonization programs in the fields of women�s participation in economic activity; of child and family protection and support; and of attention to the ethnic groups and local communities.
Sucre Protocol � Article 24
Incorporate the following article after Article 148 of the Agreement:

 

 

 



"Article- For purposes of the previous article, the respective social Ministers, meeting as an Enlarged Committee, shall adopt the following programs in fields that are of interest to the Community:

Programs for harmonizing policies with regard to women�s participation in economic activities; child and family support and protection; and service to ethnic groups and local communities."

Decisi�n 584:Sustituci�n de la Decisi�n 547, Instrumento Andino de Seguridad y Salud en el Trabajo - Art�culo 26

El empleador deber� tener en cuenta, en las evaluaciones del plan integral de prevenci�n de riesgos, los factores de riesgo que pueden incidir en las funciones de procreaci�n de los trabajadores y trabajadoras, en particular por la exposici�n a los agentes f�sicos, qu�micos, biol�gicos, ergon�micos y psicosociales, con el fin de adoptar las medidas preventivas necesarias.

Art�culo 27
Cuando las actividades que normalmente realiza una trabajadora resulten peligrosas durante el per�odo de embarazo o lactancia, los empleadores deber�n adoptar las medidas necesarias para evitar su exposici�n a tales riesgos. Para ello, adaptar�n las condiciones de trabajo, incluyendo el traslado temporal a un puesto de trabajo distinto y compatible con su condici�n, hasta tanto su estado de salud permita su reincorporaci�n al puesto de trabajo correspondiente. En cualquier caso, se garantizar� a la trabajadora sus derechos laborales, conforme a lo dispuesto en la legislaci�n nacional de cada uno de los Pa�ses Miembros.
 

Decisi�n 586
Programa de Trabajo para la Difusi�n y Ejecuci�n de la Carta Andina para la Promoci�n y Protecci�n de los Derechos Humanos
I. Antecedentes.

La Carta destaca prioridades en materia de derechos humanos para la Comunidad Andina, como los derechos de los pueblos ind�genas y de comunidades de afro descendientes, los derechos econ�micos, sociales y culturales, el derecho al desarrollo y pone �nfasis en aquellos �mbitos de protecci�n de los derechos humanos que revisten particular urgencia, como los derechos de grupos que requieren protecci�n especial (ni�os, mujeres, migrantes, discapacitados, adultos mayores, desplazados, refugiados, minor�as sexuales, personas privadas de la libertad, entre otros). Los mecanismos comunitarios para el seguimiento del instrumento son los que otorgan a la Carta su mayor novedad.

II. Metas del Programa de Trabajo.


2. En materia de Implementaci�n de la Carta Andina:


2.1. Mecanismos Nacionales:


Particularmente las defensor�as del pueblo, la sociedad civil de cada pa�s y los organismos encargados de ejecutar los planes nacionales de derechos humanos, en caso de existir, deber�n dise�ar, de manera coordinada, un programa local de implementaci�n del contenido de la Carta dirigido especialmente a disminuir la discriminaci�n e intolerancia (art�culos 10, 11 y 12), los derechos de los pueblos ind�genas y comunidades de afrodescendientes (art�culos 32 al 41), los derechos de grupos sujetos de protecci�n especial (mujeres, ni�os, ni�as y adolescentes, adultos mayores, personas con discapacidad, migrantes y sus familias, personas con diversa orientaci�n sexual, desplazados internos, personas privadas de la libertad, refugiados y ap�tridas).

...

CARICOM

  Revised Treaty of Chaguaramas � Article 17
The Council for Human and Social Development
2. Subject to the provisions of Article 12, COHSOD shall be responsible for the promotion of human and social development in the Community. In particular, COHSOD shall:
...
(d) establish policies and programmes to promote the development of youth and women in the Community with a view to encouraging and enhancing their participation in social, cultural, political and economic activities;
...

Free Trade Agreements

Central America � Dominican Republic
(CAFTA-DR)

Chapter 16 - Annex 16.5
Labor Cooperation and Capacity Building Mechanism
Cooperation and Capacity Building Priorities
3. The Mechanism may initiate bilateral or regional cooperative activities on labor issues, which may include, but need not be limited to:
...
(l) gender: gender issues, including the elimination of discrimination in respect of employment and occupation;
...
Preamble
...
PROTECT, enhance, and enforce basic workers� rights and strengthen their cooperation on labor matters;
...
Chapter 16 - Labor
Article 16.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labor Organization (ILO) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-Up (1998) (ILO Declaration).1 Each Party shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in Article 16.8 are recognized and protected by its law.

Annex 16.5 - Labor Cooperation and Capacity Building Mechanism
Cooperation and Capacity Building Priorities ...
3. The Mechanism may initiate bilateral or regional cooperative activities on labor issues, which may include, but need not be limited to:
(a) fundamental rights and their effective application: legislation and practice related to the core elements of the ILO Declaration (freedom of association and the effective recognition of the right to collective bargaining, elimination of all forms of forced or compulsory labor, the effective abolition of child labor, and the elimination of discrimination in respect of employment and occupation);

1 The Parties recall that paragraph 5 of the ILO Declaration states that labor standards should not be used for protectionist trade purposes.

Canada � Chile

Agreement on Labour Cooperation � Article 11: Cooperative Activities
1. The Council shall promote cooperative activities between the Parties, as appropriate, regarding:
...
(m) the equality of women and men in the workplace;
...
Annex 1: Labour Principles
The following are guiding principles that the Parties are committed to promote, subject to each Party's domestic law, but do not establish common minimum standards for their domestic law. They indicate broad areas of concern where the Parties have developed, each in its own way, laws, regulations, procedures and practices that protect the rights and interests of their respective workforces.
...
7. Elimination of employment discrimination. Elimination of employment discrimination on such grounds as race, religion, age, sex or other grounds, subject to certain reasonable exceptions, such as, where applicable, bona fide occupational requirements or qualifications and established practices or rules governing retirement ages, and special measures of protection or assistance for particular groups designed to take into account the effects of discrimination.
8. Equal pay for women and men. Equal wages for women and men by applying the principle of equal pay for equal work in the same establishment.
...
Preamble
The Government of Canada and the Government of the Republic of Chile (Chile), resolved to:

PROTECT, enhance and enforce basic workers' rights;

Agreement on Labour Cooperation - Preamble
RECALLING their resolve in the Canada-Chile Free Trade Agreement (CCFTA) to:

- protect, enhance and enforce basic workers' rights;

 

Chile � EFTA

  Preamble
The Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation (hereinafter referred to as �the EFTA States�), and The Republic of Chile (hereinafter referred to as �Chile�), hereinafter collectively referred to as �the Parties�, resolved to:
...
REAFFIRMING their commitment to democracy, the rule of law, human rights and fundamental freedoms in accordance with their obligations under international law, including principles and objectives set out in the United Nations Charter and the Universal Declaration of Human Rights;
...
HAVE AGREED, in pursuit of the above, to conclude the following Agreement (hereinafter referred to as �this Agreement�):

Chile - US

  Preamble
The Government of the Republic of Chile and the Government of the United States of America, resolved to:
PROTECT, enhance, and enforce basic workers� rights;
Chapter Eighteen - Labor
Article 18.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labor Organization (ILO) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998). Each Party shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in Article 18.8 are recognized and protected by its domestic law.

NAFTA

Agreement on Labour Cooperation
Article 11: Cooperative Activities

1. The Council shall promote cooperative activities between the Parties, as appropriate, regarding:

13. the equality of women and men in the workplace;


Article 49: Definitions
�.
"labor law" means laws and regulations, or provisions thereof, that are directly related to:
�.
(g) elimination of employment discrimination on the basis of grounds such as race, religion, age, sex, or other grounds as determined by each Party's domestic laws;

(h) equal pay for men and women;
�.

Annex 1
Paragraph 7. Elimination of employment discrimination

Elimination of employment discrimination on such grounds as race, religion, age, sex or other grounds, subject to certain reasonable exceptions, such as, where applicable, bona fide occupational requirements or qualifications and established practices or rules governing retirement ages, and special measures of protection or assistance for particular groups designed to take into account the effects of discrimination.

Paragraph 8. Equal pay for women and men
Equal wages for women and men by applying the principle of equal pay for equal work in the same establishment.
Preamble
The Government of Canada, the Government of the United Mexican States and the Government of the United States of America, resolved to:

PROTECT, enhance and enforce basic workers' rights;

 

Proposed Peru � US text

Annex 17.5 - Labor Cooperation and Capacity Building Mechanism
...
2. Cooperation and Capacity Building Priorities
The Group comprising the Parties� Contact Points shall carry out the work of the Mechanism by developing and pursuing bilateral or regional cooperation activities on labor issues, which may include, but need not be limited to:
...
(n) gender: development of programs on gender issues, including the elimination of discrimination in respect of employment and occupation;
 
Preamble
...
PROTECT, enhance, and enforce basic workers' rights, strengthen their cooperation on labor matters, and build on their respective international commitments on labor matters;
...
Chapter Seventeen - Labor
Article 17.1: Statement of Shared Commitments

1. The Parties reaffirm their obligations as members of the International Labor Organization (ILO) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-Up (1998) (ILO Declaration)1. Each Party shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in Article 17.7 are recognized and protected by its law.

US - Australia

  Chapter Eighteen � Labour
Article 18.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labour Organization (ILO) and their commitments under the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up (1998) (ILO)
...
Article 18.5: Labour Cooperation
1. Recognizing that cooperation provides opportunities to promote respect for workers� rights and the rights of children consistent with core labour standards of the ILO, the Parties shall cooperate on labour matters of mutual interest and explore ways to further advance labour
standards on a bilateral, regional, and multilateral basis. To that end, the Parties hereby establish a consultative mechanism for such cooperation.

US - Bahrain

  Preamble
...
Desiring to protect, enhance, and enforce basic workers� rights and to strengthen the development and enforcement of labor laws and policies;
...
Chapter Fifteen � Labor
Article 15.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labor Organization (�ILO�) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998) (�ILO Declaration�).

Article 15.5: Labor Cooperation
Recognizing that cooperation provides enhanced opportunities to promote respect for core labor standards embodied in the ILO Declaration and compliance with ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (1999) (�ILO Convention 182�), and to further advance other common commitments regarding labor matters, the Parties hereby establish a Labor Cooperation Mechanism, as set out in Annex 15-A.
...

US - Jordan

  Preamble
The Government of the United States of America (�United States�) and the Government of the Hashemite Kingdom of Jordan (�Jordan�),
...
Desiring to promote higher labor standards by building on their respective international commitments and strengthening their cooperation on labor matters;
...

Article 6: Labor

1. The Parties reaffirm their obligations as members of the International Labor Organization (�ILO�) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up. The Parties shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in paragraph 6 are recognized and protected by domestic law.

US � Morocco

  Preamble
...
Desiring to strengthen the development and enforcement of labor and environmental laws and policies, promote basic workers� rights and sustainable development, and implement this Agreement in a manner consistent with environmental protection and conservation;
...
Chapter Sixteen - Labor
Article 16.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labor Organization (�ILO�) and their commitments under the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up (1998) (�ILO Declaration�).
...
Article 16.5: Labor Cooperation
1. Recognizing that cooperation provides enhanced opportunities to promote respect for core labor standards embodied in the ILO Declaration and compliance with ILO
Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (1999) (�ILO Convention 182�), and to
further advance other common commitments regarding labor matters, the Parties hereby establish a Labor Cooperation Mechanism, as set out in Annex 16-A.

Annex 16-A � Labor Cooperation Mechanism
...
Cooperative Activities
4. The Parties may undertake cooperative activities through the Labor Cooperation Mechanism on any labor matter they consider appropriate, including on:
...
(a) fundamental rights and their effective application: legislation and practice related to the core elements of the ILO Declaration (freedom of association and the effective recognition of the right to collective bargaining, elimination of all forms of forced or compulsory labor, the
effective abolition of child labor, and the elimination of discrimination in respect of employment and occupation);
...

US - Oman

  Preamble
...
Desiring to protect, enhance, and enforce basic workers� rights and to strengthen the development and enforcement of labor laws and policies;
...
Chapter Sixteen � Labor
Article 16.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labor Organization (�ILO�) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up (1998) (�ILO Declaration�).1 Each Party shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in Article 16.7 are recognized and protected by its law.


1 The Parties recall that paragraph 5 of this ILO Declaration states that labor standards should not be used for protectionist trade purposes.

Article 16.5: Labor Cooperation
Recognizing that cooperation provides enhanced opportunities to promote respect for core labor standards embodied in the ILO Declaration and ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (1999) (�ILO Convention 182�), and to further advance other common commitments regarding labor matters, the Parties hereby establish a Labor Cooperation Mechanism, as set out in Annex 16-A.

US- Singapore

  Chapter 17: Labor
Article 17.1: Statement of Shared Commitment

1. The Parties reaffirm their obligations as members of the International Labor Organization (AILO�) and their commitments under the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up.17-1 Each Party shall strive to ensure that such labor principles and the internationally recognized labor rights set forth in Article 17.7 are recognized and protected by domestic law.
...
17-1 The Parties recall that paragraph 5 of this ILO Declaration states that labor standards should not be used for protectionist trade purposes.

Annex 17A � United States � Singapore Labor Cooperation Mechanism
3. Cooperative Activities. Cooperative activities to be undertaken by the Labor Cooperation Mechanism may include the following subjects:
(a) fundamental rights and their effective application: legislation, practice, and implementation related to the core elements of the ILO Declaration on Fundamental Rights at Work (freedom of association and the effective recognition of the right to collective bargaining, elimination of all forms of forced or compulsory labor, abolition of child labor including the worst forms of child labor in compliance with ILO Convention No. 182, and elimination of employment discrimination);
...

Political Dialogue, Partnership, and Cooperation Agreements and Regional Strategy Documents

EU � ACP Partnership
(Cotonou)

 

Preamble

REFERRING to the principles of the Charter of the United Nations, and recalling the Universal
Declaration of Human Rights, the conclusions of the 1993 Vienna Conference on Human Rights, the
Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights, the Convention
on the Rights of the Child, the Convention on the Elimination of all forms of Discrimination against
Women, the International Convention on the Elimination of all forms of Racial Discrimination,
the 1949 Geneva Conventions and the other instruments of international humanitarian law, the
1954 Convention relating to the status of stateless persons, the 1951 Geneva Convention relating to the
Status of Refugees and the 1967 New York Protocol relating to the Status of Refugees;

Article 1
...
Sustained economic growth, developing the private sector, increasing employment and improving access to productive resources shall all be part of this framework. Support shall be given to the respect of the rights of the individual and meeting basic needs, the promotion of social development and the conditions for an equitable distribution of the fruits of growth. Regional and sub-regional integration processes which foster the integration of the ACP countries into the world economy in terms of trade and private investment shall be encouraged and supported. Building the capacity of the actors in development and improving the institutional framework necessary for social cohesion, for the functioning of a democratic society and market economy, and for the emergence of an active and
organised civil society shall be integral to the approach. Systematic account shall be taken of the situation of women and gender issues in all areas � political, economic and social. The principles of sustainable management of natural resources and the environment shall be applied and integrated at every level of the partnership.

Article 8 - Political dialogue
...
3. The dialogue shall cover all the aims and objectives laid down in this Agreement as well as all questions of common, general, regional or sub-regional interest. Through dialogue, the Parties shall contribute to peace, security and stability and promote a stable and democratic political environment. It shall encompass cooperation strategies as well as global and sectoral policies, including environment, gender, migration and questions related to the cultural heritage.
...
Article 9 - Essential Elements and Fundamental Element
...
2. The Parties refer to their international obligations and commitments concerning respect for human rights. They reiterate their deep attachment to human dignity and human rights, which are legitimate aspirations of individuals and peoples. Human rights are universal, indivisible and inter-related. The Parties undertake to promote and protect all fundamental freedoms and human rights, be they civil and political, or economic, social and cultural. In this context, the Parties reaffirm the equality of men and women.
...

Article 20 - The Approach
The objectives of ACP-EC development cooperation shall be pursued through integrated strategies that
incorporate economic, social, cultural, environmental and institutional elements that must be locally owned. Cooperation shall thus provide a coherent enabling framework of support to the ACP�s own development strategies, ensuring complementarity and interaction between the various elements. In this context and within the framework of development policies and reforms pursued by the ACP States, ACP-EC cooperation strategies shall aim at:
...
(b) promoting human and social development helping to ensure that the fruits of growth are widely and equitably shared and promoting gender equality;
...
2. Systematic account shall be taken in mainstreaming into all areas of cooperation the following thematic or cross-cutting themes : gender issues, environmental issues and institutional development and capacity building. These areas shall also be eligible for Community support.

Article 31 - Gender issues
Cooperation shall help strengthen policies and programmes that improve, ensure and broaden the equal participation of men and women in all spheres of political, economic, social and cultural life.
Cooperation shall help improve the access of women to all resources required for the full exercise of their fundamental rights. More specifically, cooperation shall create the appropriate framework to:

(a) integrate a gender-sensitive approach and concerns at every level of development cooperation including macroeconomic policies, strategies and operations; and
(b) encourage the adoption of specific positive measures in favour of women such as:

(i) participation in national and local politics;
(ii) support for women�s organisations;
(iii) access to basic social services, especially to education and training, health care and family planning;
(iv) access to productive resources, especially to land and credit and to labour market; and
(v) taking specific account of women in emergency aid and rehabilitation operations.

Preamble

ANXIOUS to respect basic labour rights, taking account of the principles laid down in the relevant conventions of the International Labour Organisation;

 

EU � ANDEAN Political Dialogue

Article 6 � Objectives

2. The Parties agree that cooperation shall take account of cross-cutting aspects relating to economic and social development, including issues such as gender, respect for indigenous populations, natural disaster prevention and response, environmental conservation and protection, and biodiversity, and foster research and technological development. Regional integration shall also be considered as a cross-cutting theme and in that regard cooperation actions at national level should be compatible with the process of regional integration.


Article 41 - Cooperation in the field of health
...
2. The Parties agree that primary prevention also requires involving other sectors such as education and water and sanitation. In this regard, the Parties aim to strengthen and develop partnerships beyond the health sector to achieve the Millennium Development Goals, particularly in the fight against AIDS, malaria and tuberculosis, consistent with the relevant World Trade
Organisation rules. Partnerships with organised civil society, NGOs and the private sector are also needed to address sexual and reproductive health and rights in a gender-sensitive approach and to work with young people to prevent sexually transmitted diseases and unwanted pregnancies.
...
Article 44 � Cooperation in the field of gender

The Parties agree that cooperation in this field shall help to strengthen policies and programmes aimed at ensuring, improving and expanding the equal participation of men and women in all sectors of political, economic, social and cultural life, including, where necessary, through the adoption of positive measures in support of women. It shall also help to facilitate the access of women to all the resources needed to fully exercise their fundamental rights.
Article 37 - Cooperation on education and training
1. The Parties agree that cooperation in this field shall aim at improving education and vocational
training. To this end, access by young people, women and senior citizens to education, including
technical courses, higher education and vocational training, shall receive special attention, as shall
achieving the Millennium Development Goals in this context.

 

EU � Central America Political Dialogue

Article 6 - Objectives
...
2. The Parties agree that cooperation shall take account of cross-cutting aspects relating to economic and social development, including issues such as gender, respect for indigenous peoples and other Central American ethnic groups, natural disaster prevention and response, environmental conservation and protection, biodiversity, cultural diversity, research and technological
development. Regional integration shall also be considered as a cross-cutting theme and in that regard cooperation actions at national level should be compatible with the process of regional integration.
...

Article 37 -Cooperation on education and training
1. The Parties agree that cooperation in this field shall aim to determine how to improve education and vocational training. To this end, access by young people, women, senior citizens, indigenous peoples and other Central American ethnic groups, to education, including technical courses, higher education and vocational training, shall receive special attention, as shall achieving the Millennium Development Goals in this context.
...
Article 41 - Cooperation in the field of health

2. The Parties agree that primary prevention also requires involving other sectors such as education and water and sanitation. In this regard, the Parties aim to strengthen and develop partnerships beyond the health sector to achieve the Millennium Development Goals, such as the fight against AIDS, malaria, tuberculosis and other epidemics. Partnerships with civil society,
NGOs and the private sector are also needed to address sexual health and rights in a gender sensitive approach and to work with young people to prevent sexually transmitted diseases and unwanted pregnancies, provided that these objectives do not contravene the legal framework and cultural sensitivity of the countries.

Article 44 - Cooperation in the field of gender
The Parties agree that cooperation in this field shall help to strengthen policies, programmes, and mechanisms aimed at ensuring, improving and expanding the equal participation and opportunities for men and women in all sectors of political, economic, social and cultural life, including where necessary, through the adoption of positive measures in support of women. It shall also help to facilitate the access of women to all the resources needed to fully exercise their fundamental rights.
 
 

EU � Central America Regional Strategy

1. Summary
...
At the beginning of the 21st century, the people of Central America face a series of interlinked challenges; on the one hand, to consolidate the process of peace building and democratic government, and on the other, to fight poverty, to build competitive economies, to reduce environmental vulnerability and to reduce wide social inequalities in terms of income, gender and the urban/rural divide. Confronting these challenges will
entail as a necessary condition a more economically integrated region, focused on sustainable human development. It also assumes the continuation of international cooperation support.
...

5. Definition of the Community Support Programme

5.1. General objective of Community cooperation The strategy proposed by the EC regarding Central America is aimed at consolidating the processes of peace and democratisation in the region, and supporting efforts towards economic and social development, by stimulating regional integration and reducing vulnerability. In supporting existing common policies, linking rehabilitation and sustainable development, this strategy must also take into account the need to promote equal access for men and women to political, social and economic development.


6. Multiannual Indicative Programme
...
6.4 Crosscutting issues:
Cooperation between the two sides should be based on the objective of broad participation by civil society, the principles of social equality � including as regards
gender, respect for minorities and different cultures and sustainability of environmental management. All actions prepared on the basis of these intervention areas must take into consideration the following crosscutting issues:
� Equal opportunities and exclusion: all actions under this current strategy will take into consideration the equal participation of men and women, as well as access for indigenous communities, in order to combat exclusion and marginalisation.
 

EU � Chile Association

Article 44 - Social cooperation
1. The Parties recognise the importance of social development, which must go hand in hand with economic development. They will give priority to the creation of employment and respect for fundamental social rights, notably by promoting the relevant conventions of the International Labour Organisation covering such topics as the freedom of association, the right to collective bargaining and non-discrimination, the abolition of forced and child labour, and equal treatment between men and women.
...
Article 45 -Cooperation related to gender
1. Cooperation will contribute to strengthening policies and programmes that improve, guarantee and extend the equitable participation of men and women in all sectors of political, economic, social and cultural life. Cooperation will contribute to easing women�s access to all necessary resources for the full exercise of their fundamental rights.
2. In particular, cooperation should promote the creation of an adequate framework to:

(a) ensure that gender and gender-related issues can be taken into account at every level and in all areas of cooperation including macroeconomic policy, strategy and development operations; and
(b) promote the adoption of positive measures in favour of women.

Preamble
Considering the traditional links between the Parties and with particular reference to:
...
- their full commitment to the respect for democratic principles and fundamental human rights as set out in the Universal Declaration of Human Rights;
...
the Parties have decided to conclude this Agreement
...

Article 16 - General Objectives
1. The Parties shall establish close cooperation aimed inter alia at:
...
(b) promoting social development, which should go hand in hand with economic development and the protection of the environment. The Parties will give particular priority to respect for basic social rights;
...
 

European Commission � Latin America Regional Strategy

3. Analysis of the Region�s Situation
...
3.6. Medium-term challenges for the countries of the region
...
3. Social challenges: tackling inequalities
Reducing inequalities must be the priority, which involves:
...
- promoting social integration policies, giving priority to society�s disadvantaged people and
groups, indigenous groups and people of African origin, women and young people;
...
 

European Community � MERCOSUR Interregional Framework Cooperation Agreement

  Title I � Objectives, Principles and Scope
Article 1 - Basis for cooperation

Respect for the democratic principles and fundamental human rights established by the Universal Declaration of Human Rights inspires the domestic and external policies of the Parties and constitutes an essential element of this Agreement.

Title III � Economic Cooperation
Article 10 - Objectives and principles

...
7. A regard for social development, particularly the promotion of fundamental social rights, shall motivate the steps taken by the Parties in this field.

MERCOSUR � European Community Regional Strategy

5. The EU response strategy
5.2. Policy Mix and coherence with EU Policy

In the field of Environment, the EU has funded certain projects for the protection of the
environment in Brazil, Argentina, Uruguay and Paraguay. The most important is PPG7
in Brazil. The most important challenge will be how to address an Association
Agreement, that will increase trade in full respect of environment, and linked to the need
of Mercosur of having better physical integration. Crosscutting issues such as gender
equality will be taken into account.

Memorandum of Understanding between The European Community and the Southern Cone Market (MERCOSUR) concerning the multiannual guidelines for the implementation of Community cooperation
Article 2 - Basic Principles

...
The principles used to determine which sectors and subsectors are to be focused on in the period 2000-2006 shall be as follows:
...
Particular attention will be devoted in the context of this Memorandum to gender, environmental and human-rights issues.
...
 

European Community � Mexico Economic Partnership, Political Coordination and Cooperation Agreement

Article 36 - Cooperation on social affairs and poverty
1. The Parties shall conduct a dialogue on all aspects of the social agenda of interest to one or other Party.
This should include topics related to vulnerable groups and regions such as: indigenous population, the rural poor, women on low incomes and other population groups living in poverty.
...

Article 37 - Regional cooperation
1. The Parties shall promote activities aimed at developing joint actions by means of cooperation, mainly in Central America and the Caribbean.
2. Priority shall be given to initiatives channelled towards promoting intra-regional trade in Central America and the Caribbean; stimulating regional cooperation on the environment and on technological and scientific research; promoting the development of the communications infrastructure needed for the economic development of the region and supporting
initiatives to improve the standard of living of those living in poverty.
3. Special attention shall be given to developing the role of women, particularly in the production process.
...
 
* Such as through reference to conventions including provisions on gender equality, like the 1998 ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up or the Universal Declaration of Human Rights.
 
[1] The views expressed in this paper are those of the authors and should not be taken to represent those of the OAS General Secretariat nor those of any of the OAS member countries. The authors are grateful for the input of their colleagues, particularly Francisco Coves, who inspired us to write on this topic, and Fabian Victora, who provided valuable research assistance. The authors are also grateful to Marta Beltran-Martinez, Mercedes Kremenetzky, and Carmen Lomellin of the OAS Inter-American Commission on Women for engaging us in interesting discussions, suggesting sources and data and for their encouragement. We benefited greatly from our participation in the Second Meeting of Ministers or Highest-Ranking Authorities Responsible for the Advancement of Women in the Member States -  REMIM-II held at OAS Headquarters in Washington D.C., April 21-23, 2004, at which a first draft of this paper was presented. All omissions, commissions, and errors are the responsibility of the authors.

[2] The term deadweight loss captures the efficiency cost of distortions such as a tariff.  The concept incorporates the efficiency loss to producers due to the fact that resources are used inefficiently plus the loss to consumers who are paying a higher price than they would agree to in a situation with no distortions.

[3] For a discussion of the emergence of patrilineal and patriarchal systems, see Beneria 1979.

[4] For a discussion of the evolution of the concept of gender and development, see Razavi and Miller 1995.

[5] Finally, as an acknowledgement of this potential bias, there have also been recent efforts to address the issues faced by men, which shows that gender is no longer being used as the politically correct alternative to �women� (for example in the Caribbean emphasis has been placed on the effects of unemployment in men; in Africa efforts to address the AIDS epidemic have centred on the role of men). For more discussion of this topic see Arias 2000; Greig, Kimmel and Land 2000; and Cleaver, ed. 2002.

[6] This concept is explored in depth in Gammage, Jorgensen, McGill, and White 2002.

[7] For more discussion on this issues see World Bank 2001.

[8] See, for example, Fontana, Joekes and Masika 1998.

[9] This is discussed in Joekes 1995, Espino 2000 and de Pauli 2000.

[10] Examples can be found in Beneria and Lind 1995 and in Joekes 1995.

[11] For an example, see the case study from El Salvador (Alvarenga 2001).

[12] Although a time series is not shown here, the data regarding male employment in the Food and Beverage sector  shows that it as remained relatively stable over the years (1996-2000)

[13] Note: these numbers correspond to national (not harmonized) definition of informal sector, which may explain the important variation between countries.

[14]For data see ECLAC 2002; Wirth 2001; Anker 1998.

[15]In non-exporting companies, it was estimated that women earned about 60 percent of men�s wage.

[16]For a full discussion of the theories relating to occupational segregation, please see Anker in Fetherolf Loufti, ed. 2001.

[17]The average tariff in Latin American countries has fallen from an average of 40 percent, in the mid-1980s, to a current average of around 10 percent.

[18]A list of the trade agreements signed by countries in the America can be found in the Trade Agreements section of the SICE website:  http://www.sice.oas.org/TRADEE.ASP.

[19]Under section 2104(f) of the Trade Act of 2002, the USITC submits to the President and the Congress (not later than 90 calendar days after the President enters into the agreement) a report providing an assessment of the likely impact of the agreement on the United States economy as a whole and on specific U.S. industry sectors and the interests of U.S. consumers.  See http://www.usitc.gov/econfx.htm

[20]This is done using the Framework for Conducting Environmental Assessments of Trade Negotiations, which includes consultations with the provinces and territories, aboriginal groups, representatives from NGOs, academia, and the private sector, has been used since 1999, when Canada undertook a commitments at the Seattle Ministerial meeting to assess domestic environmental implications of a new WTO round.  See http://www.dfait-maeci.gc.ca/tna-nac/backgrounder-en.asp.

[21]The EU�s SIAs are peformed according to a three step methodology, developed by the Institute for Development Policy and Management (University of Manchester), that combines a causal chain analysis methodology for the assessment themselves and a consultation process with stakeholders and civil society to get feedback on the findings and proposals

[22] The EU Treaty explicitly mentions the elimination of inequalities and the promotion of equality between women and men among the tasks and objectives of the European Community (articles 2 and 3). EU Communication COM(96)67states that "Incorporating equal opportunities for women and men into all Community policies and activities states that �[e]qual participation of women and men is a crucial factor for lasting development and symbolises the level of political maturity of societies: while democracy requires equal rights for women, this in turn guarantees democracy."

[23] For example,  Article 1(2)confirms the commitment to reaching the Millenium Development Goals; Article 6(2) sets out gender as a cross-cutting field of cooperation; article 37(1) exhorts parties to improve access by women to education, including technical courses, higher education and vocational training; Article 41 (2) urges a gender-sensitive approach in cooperation in the field of health; and Article 44 addresses cooperation in the field of gender and aims �to strengthen policies and programmes aimed at ensuring, improving and expanding the equal participation of men and women in all sectors of political, economic, social and cultural life.�

[24] In the EU-ACP agreement (the Cotounou Agreement), the preamble, Article 1(Objectives), Article 9 (2), and Article 20 (1) (2) state and reaffirm the Parties respect of international conventions regarding women�s rights (such as CEDAW), their belief in men�s and women�s equality and their commitment to include a gender perspective in �all areas of cooperation�. Article 31 further states that cooperation �shall help strengthen policies and programmes that improve, ensure and broaden the equal participation of men and women in all spheres of political, economic, social and cultural life�, and in particular encourage �specific positive measures� in favour of women �such as participation in national and local politics; support for women�s organizations; access to basic social services, especially to education and training, health care and family planning; access to productive resources, especially to land and credit and to labour market; and taking specific account of women in emergency aid and rehabilitation operations.�  In the Interim Agreement on trade and trade-related matters between the European Union and  Mexico, Parties affirm their commitment to the principles of the Declaration of Human Rights as well as to sustainable and equitable development as set out in the Copenhagen Declaration (March 1995). This commitment is further asserted in Article 36 which states that the Parties shall �conduct a dialogue on all aspects of the social agenda�, including on topics such as women. Finally, Article 37(3) draws specific attention to the issue of gender by declaring that �special attention shall be given to the role of women, particularly in the production process�.

[25] The North American Agreement on Labor Cooperation�s Article 11 exhorts the ministerial  Council of the Commission for Labor Cooperation to promote cooperative activities regarding, among others, �(m) the equality of women and men in the workplace�; Article 49, definitions, includes in the definition of  � labor law�  an element of regulations related to equal pay for men and women; and Annex 1 includes, as guiding principles, (7) Elimination of employment discrimination � on such grounds as race, religion, age, sex, or other grounds�  and (8) Equal pay for women and men.

[26] The Canada-Chile Agreement on Labour Cooperation�s Article 11 on Cooperative Activities urges the Council to promote activities regarding (m) � the equality of women and men in the workplace and includes, in annex 1, elimination of employment discrimination and equal pay for women and men as principles. 

[27] Article 3(l) of Annex 16.5, the Labor Cooperation and Capacity Building mechanism of the US CAFTA, sets out gender issues, � including the elimination of discrimination in respect of employment and occupation� as a cooperation and capacity building priority.

[28] Article 130 of the Andean Community Decision 563, the Official Codified Text of the Andean Subregional Integration Agreement (Cartagena Agreement), urges Ministers to adopt �Policy harmonization programs in the fields of women�s participation in economic activity�; Article 17 (d) of CARICOM�s Revised Treaty of Chaguaramas urges the Council for Human and Social Development (COHSOD) to "establish policies and programmes to promote the development of youth and women in the Community with a view to encouraging and enhancing their participation in social, cultural, political and economic activities" ; and the MERCOSUR set up a special group on women to examine the situation of women within the MERCOSUR, through MERCOSUR/GMC/RES N� 20/98: El Grupo Mercado Com�n Resuelve Art 1 Crear la Reuni�n Especializada de la Mujer (REM) que tendr� como cometido analizar la situaci�n de la mujer, teniendo en cuenta la legislaci�n vigente en los Estados Partes del MERCOSUR en lo relativo al concepto de igualdad de oportunidades, con el objeto de contribuir al desarrollo social, econ�mico y cultural de la comunidades de los Estados Partes del MERCOSUR".  The issue of gender was further recognized in MERCOSUR/GMC/RES.N84/00 on the incorporation of a gender perspective in MERCOSUR, adopted in 2000, which instructs the different MERCOSUR fora to take gender into account in the planning, elaboration and implementation of their activities, with the objective to guarantee equality and equity among the genders.

[29] The FTAA�s Hemispheric Cooperation Program is described in Annex III of the Quito Ministerial Declaration, and the Hemispheric Cooperation button on the FTAA Website (www.ftaa-alca.org, www.alca-ftaa.org and www.zlea.org)

[30]Argentina- Programa Federal de la Mujer - Prestamo BID (1133/OC-AR)

[31] A sample of these strategy papers can be found on the FTAA Website at www.ftaa-alca.org, www.alca-ftaa.org or www.zlea.org.  

[32] The first three drafts of the FTAA text have been made public:  the first draft was released in July 2001, the second in November 2002; and the third in November 2003.  They can be found on the FTAA website www.ftaa-alca.org, www.alca-ftaa.org or www.zlea.org.