Gender Equality in International Trade

Women and Trade: The Role of Gender Equality in International Commerce

Women are a significant force in international trade and commerce, especially in developing countries where they often dominate export-oriented sectors like apparel, textiles, and electronics manufacturing. Understanding the relationship between gender equality and trade is crucial for policy makers to ensure that trade contributes to enhancing opportunities for all genders.

Women's Participation in Export-Oriented Sectors

In many developing countries, women are heavily concentrated in export-oriented industries, particularly those related to light manufacturing. For example, in some Asian countries, women account for more than 80% of workers in certain textile and garment factories. This concentration can have both positive and negative impacts on women, as it may lead to increased economic empowerment through higher wages and better job opportunities, but also expose them to labor exploitation and other challenges associated with these industry verticals.

Small and Medium Enterprises (SMEs)

Data shows that women tend to be overrepresented in small and medium-sized enterprises (SMEs), which are not always well represented in trade data. However, SMEs face particular barriers when it comes to participating in international trade due to factors such as limited access to finance, skills training, and business development services. Efforts are being made to support reforms that reduce trade costs for SMEs and help them participate more effectively in global markets.

Impact of Global Value Chains

The increasing integration of global value chains has led to a greater involvement of women in various aspects of production, from raw material extraction to final assembly and services. In some cases, this has resulted in improved working conditions and income opportunities for women. However, there are concerns about the potential for adverse effects, such as increased vulnerability to changes in market demand or labor practices.

Digitalization and E-commerce

The digital economy is changing the way trade affects women by reducing the costs of participation and opening up new opportunities for them to engage in cross-border transactions. As more businesses move online and e-commerce platforms become more accessible, there is an opportunity to increase women's participation in global trade. However, the lack of disaggregated data on digitally enabled trade makes it difficult to fully assess the impact and potential benefits for women.

Trade Policy and Gender Mainstreaming

Over recent years, there have been efforts at the World Trade Organization (WTO) level to mainstream a gender perspective into trade policies and negotiations, including the Joint Declaration on Trade and Women’s Economic Empowerment in 2017. This declaration aims to increase women’s participation in trade by sharing information on gender-related issues during Trade Policy Reviews and identifying barriers for women in international commerce. Additionally, some countries have incorporated chapters on trade and gender into bilateral and regional trade agreements.

Conclusion

The role of gender equality in international trade is multifaceted and complex. While there are clearly positive impacts from trade on the economic empowerment of women, particularly those working in export sectors, there are also challenges related to labor exploitation, limited access to resources, and unequal representation in decision-making processes. Further research and policy efforts are needed to address these challenges and ensure that trade contributes to enhancing opportunities for all genders.