Women s Access to the Economy in the Current Period of Economic Integration of the Americas: What Economy? Concordia University/Université du Québec à Montréal April 23-26, 2003 Workshop Two: Women and Trade Agreements: What is the Role of National Policies? Engendering trade agreements: linkages between trade policy and the domestic economy Heather Gibb and Chantal Blouin* The North-South Institute, Ottawa Introduction: Men and women are affected differently by trade policies, and have a different impact and influence on trade patterns and policies. This is because worldwide, women and men have different access to ownership and control of productive resources (land, credit, their own labour), decision-making and participation. Sex segregation persists in labour markets: women and men tend to be concentrated in different sectors (women, for example, tend to predominate in traditional manufacturing industries like garments, textiles and footwear). In agriculture, women constitute the majority of small-scale farmers in rural areas; women-owned businesses tend to be smaller than men-owned businesses and in many countries and encounter gender-related barriers to their growth. Trade liberalization creates or expands some activities or sectors in national economies, and contracts or eliminates others. Understanding the relationship between gender and trade policy is important for policy makers, so they will be better able to identify areas where trade liberalization could advance broader domestic goals, and where trade agreements might actually undermine other public policy priorities, including gender equality. There are productivity gains to be achieved through policies that recognize and promote gender equality: countries will be better able to take advantage of the opportunities presented by trade liberalization when they address gender-related barriers to the economic activities their total workforce. World Bank analyses conclude that greater gender equality and a less rigid or extreme gender-based division of labour promote economic growth in two ways: by raising the total level of productive capital in society, and by specifically increasing female productive capital, which has important pro-growth effects 1. * Heather Gibb is Senior Researcher (gender, workers rights) and Chantal Blouin is Researcher (trade and development), The North-South Institute. The authors would like to express appreciation for suggestions and comments received on a draft version of this paper presented at the conference, Women s Access to the Economy in the Current Period of Economic Integration of the Americas: What Economy?, Montreal, April 23-26, 2003. 1
Women, equally with men, are entitled to the benefits to be gained through trade liberalization, as well as to protection from any negative impacts. The equal rights of women and men are clearly set out in the principles enshrined in the Charter of the United Nations, and the Universal Declaration of Human Rights and other international human rights instruments. Equality rights between women and men are elaborated in the 1979 Convention on the Elimination of All Forms of Discrimination Against Women. At the Fourth World Conference on Women in Beijing in 1995, members of the United Nations reaffirmed their commitment to these principles. They also drew attention to the gender dimensions of trade, and took on a commitment to: seek to ensure that national policies related to international and regional trade agreements do not have an adverse impact on women s new and traditional economic activities (Strategic objective F.1. 165 (k); establish mechanisms and other forums to enable women entrepreneurs and women workers to contribute to the formulation of policies and programmes being developed by economic ministries and financial institutions (165 (n) ). More recently, in signing the Millennium Development Goals, all members of the United Nations pledged to: promote gender equality and empower women by eliminating gender disparity in primary and secondary education (3), and to develop a global partnership for development (8), including develop(ing) further an open trading and financial system that is rule-based, predictable and non-discriminatory. This paper looks at how the Canadian government has responded to national and international commitments to protect and advance gender equality in the area of trade policy, drawing on some lessons learned from a case study of labour mobility provisions in the North American Free Trade Agreement (NAFTA) and the General Agreement on Trade in Services (GATS) at the WTO recently undertaken by researchers at The North- South Institute. The paper briefly identifies the foundations for gender aware trade policy in Canada, then asks whether current practices in trade policy-making are consistent with the government s gender equality policy objectives. The paper concludes with a few observations and suggestions for Canadian policymakers. 1 Integrating Gender into the World Bank s Work: A Strategy for Action, 2002 p. 5 2
How are national commitments to gender equality reflected in Canada s international trade policy? What federal Government gender equality commitments affect trade policy? The Federal Plan for Gender Equality (1995) sets out the Government s objectives to implement gender-based analysis throughout federal departments and agencies; improve women s economic autonomy and well-being by, interalia, encouraging women s entrepreneurship and promoting the economic security and well-being of women; and, promote and support global gender equality. The Canadian Charter of Rights and Freedoms guarantees gender equality. In addition, the Canadian Government is a signatory to international agreements on gender equality, including the 1979 UN Convention on the Elimination of All Forms of Discrimination Against Women. At the regional level, Canada has contributed to gender mainstreaming in international trade forums like APEC and the OAS, and supported discussions on gender and trade at the WTO. Applying gender equality commitments to Canadian trade policy-making: how is trade policy developed? While the federal Cabinet approves general trade policy, it does not set specific negotiating details. These are developed through internal and external consultative mechanisms. These consultative mechanisms are heavily weighted to producer groups. Internal processes: o Inter-departmental consultations: Increasingly, trade policy intrudes into areas beyond the traditional line departments: Department of Foreign Affairs and International Trade (DFAIT), Industry Canada and Agriculture and Agri-Food Canada. They include: Health, Environment, Fisheries and Oceans, Natural Resources Canada, etc. While sectoral interests are broadening, inputs continue to address mainly Canadian commercial interests in these sectors. Social policy and gender equality concerns tend to be marginalized in consultations with civil society. The Canadian women s affairs machinery, Status of Women Canada, is a participant in the inter-departmental process, however, such a small ministry is unable to provide gender expertise and analysis for every issue on the trade agenda. Indeed, the Federal Plan for Gender Equality clearly sets out the government s intention that gender analyses of policy be done by the respective departments. In addition to the inter-departmental process, trade policy is informed by: 3
o Federal-provincial/territorial consultations to what extent do provincial/territorial women s affairs ministries have the capacity to ensure gender concerns are reflected in provincial/territorial positions? o Sectoral Advisory Groups on International Trade (SAGITs) - these are comprised of industry representatives, lawyers or hired consultants to industrial groups. While greater attention appears to have been given in recent years to balancing the numbers of women and men represented on these committees, there is no evidence of inclusion of gender expertise. The emphasis given to commercial interests in participation on advisory groups is particularly visible here: nurses associations are not represented in the Health SAGIT nor in the Services SAGIT, although the international movement of nurses is a key interest of some countries in the current GATS negotiations. o Team Canada Advisory Board This 20-member industrial group that provides advice on trade policy and market access questions; issues related to trade and investment promotion, review and offer advice on the government s International Business Development Plan. Membership in 2001 was 17 men, 3 women. o Academic Advisory Council on Canadian Trade Policy It is unclear whether this council includes or reflects the gender dimensions of trade policy. Broader/external public consultations: o DFAIT on-line consultations on GATS (2000) information was not collected or disaggregated by sex, so any gender differences are not visible. o DFAIT cross-canada consultations (2000 and 2002) This extensive process of consultation was undertaken in cooperation with provincial/territorial governments. Lists (posted on the DFAIT website) of invited organizations and those who made submissions shows participation by nursing and other medical associations, but no position papers or presentations by groups or individuals representing women business owners. Mainstream business orga nizations (Canadian Chamber of Commerce, Alliance of Manufacturers and Exporters, Canadian Federation of Independent Business) were well represented, but those organizations are not likely to represent or voice concerns of women (for example, the Foundation of Canadian Women Entrepreneurs, Women in International Trade-Ontario, Canadian Association of Women Executives and Entrepreneurs). 4
o Standing Committee on Foreign Affairs and International Trade (SCFAIT) hearings No representatives or spokespersons from women s business organizations listed among witnesses in 2002 hearings by SCFAIT on the New Round of the WTO Negotiations, although larger umbrella organizations made presentations. o Industry Canada maintains ongoing dialogue with stakeholders such as Federation of Canadian Municipalities, Canadian Manufacturers and Exporters Alliance, CCC, CFIB. Women, however, tend not to participate in those associations to the same extent as men. o Periodic formal and informal consultations with civil society organizations and coalitions. Engendering labour mobility agreements: perspectives from a case study The North-South Institute recently undertook an analysis, using a gender perspective, of Canada s commitments under labour mobility provisions associated with the NAFTA (chapter 16) and the GATS, mode 4. We developed a simple gender analysis framework which was then applied to two case studies: nurses, and women business owners in general. The framework was deliberately designed to be quite simple: the intent was to apply tools of gender analysis to an existing policy model. The objective was to demonstrate how a gender analysis could contribute the policy-making process. It did not attempt to challenge fundamental assumptions embedded in the policy; rather, to make visible where policy might be compatible or incompatible with the government s national and international gender equality commitments. Key elements were: a gender analysis of the content of the agreements; an analysis of the potential impacts of the agreements on employment and working conditions; data analyses; and, participation in consultation mechanisms. Content analysis The objective of the content analysis of the agreements was to identify any overt gender biases. Who, or what groups, are most likely to be able to utilize the agreement to advance their business and professional interests; who, or what groups are excluded? This analysis draws on sex-disaggregated data from labour force surveys, to identify where women are located as workers and business business owners (sex-disaggregated data are more difficult to obtain for business ownership, export-orientation of businesses, change in value and volume of exports). Sectors targeted by the Canadian government for offers in the current GATS negotiations tend to be predominantly male-dominated: architecture, engineering, accounting. In addition, since women-owned businesses tend to be smaller than men-owned firms, they may not be large enough to meet eligibility standards as investors. 5
Analysis of potential impacts of the agreements on employment and working conditions Demand for temporary workers usually is from sectors experiencing shortages of specific skills, ie: one would not expect to see domestic layoffs as a result of imported temporary workers. While there are some reports of domestic wage rates in some sectors in Australia and the United States being undercut as a result of an influx of foreign workers, we were not able to find evidence of this in Canada. Our analysis was cons trained by a lack of sex-disaggregated data on the destination of temporary workers and on industries that receive large inflows of temporary workers under NAFTA and GATS, as well as data on the duration of their stay. Similarly, a lack of sex-disaggregated export data makes it more difficult to evaluate how or whether labour mobility agreements have supported export activity by women and men service providers. Additional questions here could include: are women s businesses placed at potential disadvantage as a result of liberalization in certain sectors, for example, provision of health services? Data analysis As suggested above, a key requirement for analyses is adequate sex-disaggregated data. The many gaps identified by our research suggested a lack of real commitment to the government s own gender equality objectives. In addition, the failure by government to make such sex-disaggregated data available to the trade advisory groups identified earlier makes consideration by those groups of implications of liberalization for women s employment and business interests, women s continuing role as primary consumers and caregivers by those groups very difficult. Another challenge for government is ensuring that data collected by various international parties to an agreement are compatible. Participation in consultation mechanisms Channels for influencing policy through external consultations appear to be constructed to ensure a stronger voice for mainstream business and professional associations, organizations which have not demonstrated capacity or interest in a gender perspective on trade issues. Some trade unions have participated in cross-canada consultations, and nurses unions have been vocal in discussions on labour mobility for nurses. The comparatively weak voice of women s associations and gender interests in the mainstream consultation process, however, presents challenges for government officials who are tasked which ensuring full and fair consultation with constituents. What other steps could national governments take to ensure those voices are heard? Is the growing reliance relying on electronic discussion forums and consultations a truly inclusive process? Are there differences in participation rates, or likely participation rates by men and women in such consultations? The apparently greater success of the Prime Minister s Task Force on Women Entrepreneurs in generating written and verbal submissions to its 6
hearings 2 suggests that more targeted calls for input to policy-making may be more successful than general appeals. In addition, our study identified other gaps in the consultation process: o Membership on SAGITS and Team Canada gender expertise does not appear to be a consideration in the nomination and selection process. o Who is invited to consultations Invitation lists were developed in consultation with the provincial/territorial governments. It is unclear whether gender considerations were at all a factor in identifying potential participants. Some business women s associations were invited, but none attended. The literature on women in business often suggests that as a result of the size (very small) of their firms and care responsibilities, women business owners tend to participate less than do men in business associations, particularly large umbrella organizations. Yet women own over a third of Canada s small businesses. Conclusions At the present time, there does not appear to be any formal entry point in the Canadian trade policy-making process where the implications for gender equality are examined. The lead departments involved in trade policy do not appear to conduct any gender analyses of the impact of trade agreements to which Canada is party. This kind of analysis should reflect on how or whether Canadian trade policy advances both Canada s domestic as well as international commitments to advance gender equality. Gender analyses of trade policy should be undertaken early on in the internal policy-making process, when the government s positions and views are being developed. The analysis should be a continuous process, to monitor the implications of the actual implementation of agreements. What steps could the Canadian Government take to move forward in this area? To begin, the lead departments in Canadian trade policy, DFAIT and Industry Canada, could make a conscious commitment to address the gender dimension in Canadian trade policy and commitments. The Canadian government has provided some leadership at the international level in this respect, through its support for gender mainstreaming initiatives in the Asia Pacific Economic Cooperation (APEC) forum and the Organization of American States (OAS). In June 2003, the Canadian International Development Agency provided substantial support and leadership for the first discussion of gender and trade at 2 As of 8/8/03, there were over 126 submissions from women s associations and individual business women on the subject of women s entrepreneurship, including exporting, posted on the website of the Prime Minister s Task Force on Women Entrepreneurs, as well as 20 submissions from federal, provincial and territorial governments (http://www.liberal.parl.gc.ca/entrepreneur/feedback.asp?lang=en). 7
a World Trade Organization (WTO) public symposium held in Geneva. Here is an example of where international efforts could well inform domestic initiatives. There is a growing literature on gender and trade, including gender analysis frameworks for trade agreements 3 that could inform internal capacity-building. Canadian departments could undertake, or commission, gender impact assessments of policy options as part of the policy-making process. Applying a gender analysis framework offers officials a much broader and balanced understanding of both the untapped opportunities that trade liberalization may present, as well as a better understanding of potential negative impacts for certain groups and sectors. The North-South Institute s gender analysis framework was intended as a simple tool for Canadian trade officials, to be modified and improved following further dialogue and experimentation The Canadian government could take steps to improve the collection of sexdisaggregated data. A simple step is to request such information on all government forms, and to enter the information in a way that it can be easily retrieved and cross-tabulations conducted. In addition, the Canadian government can urge regional and multilateral organizations to which it is party to collect and analyze sex-disaggregated data. At the domestic level, steps can be taken to ensure that women and gender experts are well represented in all policy and consultative mechanisms. Similarly, Canadian officials can press regional and multilateral organizations to address questions of participation and representation by women and gender experts, including experts from non-governmental organizations or academia, in consultative and advisory bodies. 3 For example: Mariama Williams, A Reference Manual on Gender Issues in the Multilateral Trading System; Caren Grown, Diane Elson, Nilüfer Çaðatay, eds., Growth, Trade, Finance and Gender Inequality, World Development, Vol. 28, No. 7, July 2000; WIDE, Gender and Trade Indicators, February 2002, http://www.genderandtrade.net/europe/informationsh.pdf; UNIFEM, Trade Liberalization and Women, http://www.unifem.org/trade; Nilüfer Çaðatay, Trade, Gender and Poverty. United Nations Development Programme, October 2001. 8