Bringing the Opportunities of International Trade to the World’s Women
International trade has the potential to spur economic growth and create new jobs. If carefully designed, trade policies can also help promote economic and political stability around the world. In many countries, however, underlying cultural, legal and social conditions can prevent some members of society, particularly poor women, from fully accessing the opportunities that trade has to offer. In some cases, these factors can mix with changes in trade policies to create unintended negative consequences for poor women. If these conditions are addressed and if women’s particular needs and potential are factored into economic policies, international trade can generate meaningful opportunities for women and contribute to sustainable poverty reduction. The Women’s Edge Coalition program on international trade looks at how U.S. trade policy can best be leveraged to help poor women by focusing on four areas:
- Preferential Access to Markets: Increased access to markets is a first step in ensuring that developing countries can compete globally, helping to create opportunities and jobs for women. In order to give significant economic opportunities to developing countries and to the poor women living in these countries, current preference programs must be renewed and additional preferences given to all least developed countries (LDCs); preference programs must be expanded to include products important to developing country markets, including items produced by women; and rules of origin must be made clear and liberal enough to allow meaningful market access.
- Women’s Work in the Global Economy: Traditional markets for women need to be factored into trade policy discussions. Preference programs, bilateral and regional free trade agreements (FTAs), and other market access agreements, including World Trade Organization (WTO) commitments, all provide opportunities to ensure that consideration is given to the sectors in which women are heavily employed worldwide. This includes the textiles and apparel sector, agriculture, and handicraft production. Trade agreements provide opportunities to incorporate policies and programs to provide greater market access, and to ensure that women are working under safe and fair conditions.
- Going Beyond Markets: Perhaps more fundamental than access to markets is the creation of legal and regulatory systems, as well as government and business practices, that will enable poor women to benefit from international trade. Sound legal structures, adequate enforcement mechanisms, good working conditions, development-oriented economic policies, and the establishment of open and transparent business practices are all critical to ensuring that women benefit fully from their participation in the global economy. All of these reforms can help create an environment in which women can take advantage of the opportunities of international trade. It is also necessary to implement policies and programs that will spur broad-based economic development and address the real needs of those who are displaced in the course of economic liberalization. Development goals and trade goals can be complementary and should be looked at as part of an overall strategy for economic growth and poverty reduction.
- Trade Capacity Building Assistance: The substantial U.S. commitment to trade capacity building assistance should be used to help the poor benefit from trade opportunities. To benefit women specifically, trade capacity building can include support for gender-sensitive improvements in legal and regulatory institutions; responses to the conditions ñ lack of access to credit, markets, land ownership and education that hinder women’s ability to benefit from international trade; training, and support for women entrepreneurs.