Trade: Bridging the gender diversity gap

Can trade play a role in sparking societal change?  In a nutshell, trade can pave the way to improve gender equality and the role of women in the economy. Trade can also be pivotal in expanding the access to skills and education for women.

India’s total exports (including goods and services) are estimated to be USD 67.79 billion in April 2022, as per the department of commerce. Despite myriad conversations around diversity and inclusion, it seems that there is significant room for improvement when it comes to gender equality in trade.

The dynamic between trade and gender equality is certainly complex. Policymakers have a critical role to play in enhancing the role of women in trade:  There is a pertinent need for policymakers to analyse the possible impact of trade regulations on diverse categories of people and establish evidence-based policy responses to guarantee that trade benefits everyone regardless of gender.

A new report by the WTO sheds better light on the complex dynamic between trade and gender equality. We assess why the status quo for gender parity in trade needs to change.

Gender parity in trade

• Women make up less than one-half of the workforce
• Eighty percent of individuals who work have employment  are middle or low skilled
• Women are similarly overrepresented in the informal sector, with up to 90% of women in Sub-Saharan Africa working informally
• In low-income nations, just 3% of female employees are competent workers

In a post-pandemic world, gender quality is a topic that has been at the forefront of public discussions. However, commensurate action in this regard is certainly lacking. . While most of the attention is rightfully focused on labour, social, and other domestic policies as first-line measures for improving women’s economic empowerment, trade is now receiving increased attention.

Presently, governments and policymakers ought to place increased emphasis on women can be empowered in trade. How can women impact trade adjustment by having roles as traders, entrepreneurs, and workers? How can a policy framework be created to upskill women and give them better and more equal opportunities in trade?

Participation of women in global value chains

Global commerce can change the way women are affected as workers, particularly in the position of female employees in global value chains Research by WTO demonstrates that women’s jobs are directly or indirectly dependent on exports in 27 percent of OECD nations, whereas men’s occupations are dependent on exports in 37 percent. Women’s production in the value chain might be upgraded to help women take advantage of these economic possibilities, reducing negative impacts and maximising trade profits for women.

Trade has provided economic empowerment and increased income levels to many women. Women are generally concentrated in export-oriented industries such as clothes, textiles, and electronics production in developing nations.  Trade opportunities have given women more influence over household resources, which has a profound impact on total investment in future generations’ health and education.

However, women are overrepresented in certain industries that are still adjusting and changing as a result of trade liberalisation, such as agriculture and textiles. More research is needed to determine whether there are gender variations in trade adjustment.

According to WTO, inadvertently, trade policy is prejudiced against women, resulting in reduced employment and higher consumer goods costs. Some of the reasons for this as per the report are:

• Although no government explicitly imposes tariffs based on gender, latent biases might result in “pink tariffs” that penalise women as producers and consumers.
• Women spend a larger proportion of their income on commodities with high tariffs, such as food, than males. Import tariffs can be eliminated thereby paving the way for women to earn 2.5 percent more real income than males.
• Women can benefit from targeted programmes that help them realise the advantages of trade. Women’s access to education, financial services, and digital technology are among these goals.

As the global economy changes, it presents an opportunity for policy workers across world governments to make informed decisions about greater gender equality. Not only will greater gender equality lead to societal change but it also can unlock more value in global trade.