LOBBY EUROPEEN DES FEMMES EUROPEAN WOMEN S LOBBY

LOBBY EUROPEEN DES FEMMES EUROPEAN WOMEN S LOBBY GENDER TRADE LIBERALISATION AND SERVICES IN THE EUROPEAN UNION Briefing paper prepared for the DG Trade Dialogue with civil society: Meeting of the Issue Group on Services, Brussels, September 2000 Trade liberalisation is a process of systematically reducing all tariff and non-tariff barriers between countries and trading partners. Trade liberalisation is a global process affecting every country in the world. This global process is regulated by the World Trade organisation (WTO) established in January 1995. Trade liberalisation is not a gender neutral process. A comprehensive gender analysis in relation to trade liberalisation is urgently needed and it should encompass an understanding of the social and cultural construction of the roles and relationships between women and men, which result in differential access to political power and economic resources the result of which is that women s experience of the process s of trade liberalisation in particular is significantly different from those of her male fellow citizens. The service sector was once considered a non-tradable sector. Under the WTO, however, the General Agreement on Trade in Services (GATS) has established global rules on trade and investment in services. One justification for the inclusion of services in the WTO negotiations is the growth of services as a an economic sector over the last two decades and its importance in the development of countries (eg. Communication services, tourism and travel services, transport services, construction and distribution services.) Under the universal most-favoured-nation (MFN) rule of the WTO, GATS requires every government to treat services and services suppliers of other members no less favourably than its own like services and service suppliers. Although governments can declare certain services as exempt from this MFN rule, such exemptions can be taken for only ten years and are subject of review after five years. Apart form the exemption, every government is required to submit a schedule list that identifies the services for which active access is guaranteed. The Member States of the European Union (EU) must respond in a coherent and social responsible way to the challenges of trade liberalisation and globalisation, with particular concern for the social dimension of enlargement. The EU international services trade policy both bilateral and multilateral should aim to improve social and labour standards, by means of effective international aid geared to enabling countries by agreement to raise standards with the support of the ILO (International Labour Organisation). EWL- LEF, 18 rue Hydraulique, B-1210 Bruxelles Tel. +32 2 217 90 20 Fax: +32 2 219 84 51 - e-mail: ewl@womenlobby.org Website: http://www.womenlobby.org

The European Women s Lobby (EWL) notes the lack of research in this field, especially when analysing the gender impacts related to trade liberalisation and the services industry. In the following paper we will briefly outline some of these impacts in women s livelihoods. For this purpose we have chosen three crucial areas of concerns related to the services sector: - The labour market and women s working conditions in the services sector - Education, as an example of a public service - The information and communication technologies as an example of a private mainly market service. 1. GATS the labour market and working conditions: According to the United Nations Fourth World Conference on Women strategic objective F.5 of the of the Chapter Women and economy is to eliminate occupational segregation and all forms of employment discrimination against women. Women s employment remains key to economic independence at the level of the individual and has a profound impact on the position of women in society as a whole. Women have a much more insecure life situation than men. They are particularly affected by the question of under employment, together with many forms of discrimination such as gender segregation and the pay gap. Labour market segregation: The gender segregation of European women in certain labour market sectors remains high: women s employment continues to be a concentrated in the services sector, which now accounts for just over 80 per cent of women workers across the European Union. Many women work as unskilled, underpaid workers in the service sector. Women are overrepresented in the work places where conditions are poor and wages are low and underrepresented in managing and decision making positions. Again women will be the first to suffer from budget cuts and restrictions as they are in the majority of those working in lessqualified jobs. The Pay gap: GATS liberalisation and privatisation also have an impact on women s working conditions. Companies overall want to reduce costs and increase their competitiveness. Many companies are reducing costs by paying lower salaries to women than to men for work of equal value: in the EU women continue to earn between 15 and 33 per cent less than their male colleagues for the same work. Studies show that although the labour force participation rates with trade liberalisation are likely to increase for both women and men, the wage gap between them is not likely to be reduced and occupational segregation appears to remain strong. Poverty: Women make up the majority of those living below poverty levels and face a much higher risk than men of becoming poor. Thus they are under increased pressure to emigrate and try to find jobs abroad. Women are the care-givers and housekeepers and these factors limit their choices to emigrate and try to find better living conditions in other countries. Flexible labour market: When talking about other forms of discrimination in the labour market we have to take into account that women are pioneers in the new models of labour, as temps or as home based workers; they continue to account for four out of five part-time workers in the EU. For other women the consequences of liberalised trade can mean loss of labour rights: such as social

benefits and the right to organize; given that women tend to be concentrated in low-wage industries their relative power also tends to be low. Therefore the European Women s Lobby recommends that: The EU s mandate is to mainstream gender equality in employment policies however, this requires effective tools to implement this principle, such as the use of specific indicators, increased use of benchmarking and improved gender disaggregated statistics. Social development must also be a crucial cornerstone of trade policy. Therefore it is crucially important that gender impact analysis and gender perspective be integrated into the design, implementation and review of trade policies and programmes. The EU, international organisations and governments act to eliminate pay discriminations, and reinforce legislation on this field. Furthermore, in order to close the gender pay gap, a re-evaluation of wages in sectors dominated by women is also needed. The establishment of a global and general commitment of states to increase the number of care facilities in each country. This measure is crucial to achieve equality between women and men in the labour market as women continue to be primarily responsible for the family and the social care, contribution that is unpaid and unrecognised. Governments in the EU to allow for positive actions measures so that structural barriers to full equality between women and men in relation to the service labour market can only be overcome. The establishment of global minimum labour standards by international agreements as well as by government commitments. It is important that these minimum standards do not differ from country to country so that competition is no longer based on human and labour rights. 2. GATS and Education: According to the United Nations Fourth World Conference on Women one of the main strategic objectives of the chapter on Women and Education is to ensure equal access to education, to eradicate illiteracy among women and to develop non discriminatory education and training. Related to the GATS terminology Education Services are commonly defined by reference to five categories: Primary, Secondary and Higher (Tertiary) education services, Adult and Other education services. This sector is huge in terms of its economic importance. At this stage, the European Union has made different commitments regarding private Primary Secondary, Higher as well as Adult Education. The European Union has not made any commitments on the field of Other Education Services until now. Education is one of the public services that used to be well protected and was considered the responsibility of the state. Universal, free education represents one of the central pillars within the European Social model. The guarantee of a free and universal education system has always been at the core of the promotion of equal opportunities in Europe. The

availability of primary and secondary school for all children, with more democratic access to university, has changed the lives of many individuals, in particular women, and led to a more open society in Europe. Education and training are vital for developing equal opportunities throughout our society. If education systems do not challenge traditional stereotypes on the role of women and men, those stereotypes will continue to have a damaging influence. Education and training also constitute two of the main instruments in today s changing world in helping young people to face the challenges posed by the processes of globalisation. The increase in privatisation and liberalisation of education could lead to a situation where the education system is more expensive and therefore more unjust and gender segregated. This might increase the number of women without access to free education, as they are in the weakest social positions. Therefore the EWL recommends that: The education services should never be the object of trade liberalisation according to the same rules that govern the trade with goods. Any liberalisation in relation to the provision of education service should not lead to the impoverishment of the service quality or to a restriction of access to education. The EU has to establish evaluation programmes and standards concerning quality and gender equality for those providers interested in acceding to the EU education market. 3. GATS and Telecommunications: According to the United Nations Fourth World Conference on Women strategic objective J.1of the chapter on Women and the Media is to increase the participation and access of women to expression and decision-making in and through the media and new technologies of communication Telecommunications forms one of the largest and fastest-growing sectors. The sector is divided into two broad categories within the GATS: data transmission services, telex, telegraph, facsimile and leased circuits; and value-added services (eg. Electronic mail, voice mail on-line information and data base retrieval). The Fourth Protocol to the GATS on basic communications services sets out the rules for telecommunications, and deals with measures affecting access to, and the use of, public telecommunications transport networks and services. This excludes measures affecting the cable or broadcast distribution of radio or television programming. As ICT markets become more liberalized they are increasingly controlled by enterprises, which set prices and standards, determine employment practices and control the choice of technology, as well as research and development. This market structure has many implications for gender equality and human development and it affects rich and poor women differently. A number of processes within the telecommunications sector contribute to a continued uneven distribution of power between women and men, as well as their unequal access to resources. These processes might be found within the rules, routines and practices of telecommunications firms, within the markets for this type of goods and services and also related to individuals and groups consumption of Telecommunications services.

For many women though, also in the EU, market forces produce negative impacts other than expanded choices. Especially telecommunications goods and services are produced when they can be sold, not necessarily when they are needed. According to this women are potential consumers who are unable to choose their preferences due to insufficient income, lack of skills, physical distance and other important factors. A liberalisation of these services can worsen this difficult situation. Therefore the EWL recommends that: The gap between the on-lines and the off-lines is growing and a balance has to be restored. Despite a greater participation of girls, most studies recognize that there is a gender gap in the use of new media technology. This in turn reinforces discrimination and a division between the information poor and the informationrich. Despite the lack of research on this, it can be stated that women compose the majority of the information poor. Access to telecommunications cannot be restricted to those people who can afford it. The advances in information technology and the global communication network that transcends national boundaries have an impact on public policy, private attitudes and behaviour. This means that the access to telecommunications should be universally expanded. Local and regional authorities but also companies dealing with telecommunications have to provide resources to women for basic training and access to telecommunications services, as the main obstacles for women and women s organisations to access information technologies are the costs (of equipment and connection) and the lack of training. Telecommunication services have to be design and provided to take into account women s needs and requirements.

International Conventions and Human Rights Instruments Treaty on European Union: The Treaty on European Union presents some articles that are relevant to gender equality in the European Union: - The addition of equality to Article 2 of the Treaty of Amsterdam indicates that it now falls within the general competence of the Community. Moreover the introduction of equality into Article 3, which spells out the action that the EU must undertake, implies that the EU must strive to eliminate inequality and promote equality between women and men when carrying out these actions. In all the activities referred to in this Article, the Community shall aim to eliminate inequalities, and to promote equality, between men and women. (Article 3.2) - Article 141 of the Amsterdam Treaty states that the principle of equal pay for female work or work of equal value must be applied. International Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) Adopted in 1979/entered into force 1981. Monitored by the Committee on the Elimination of Discrimination against Women (CEDAW), UN. It provides the basis for realising equality between women and men through ensuring women s equal access to, and equal opportunities in political and public life, as well as education and employment. The provisions that are most relevant to women s economic equality relate to employment, including the right to work and receive equal pay for work of equal value (Article 11), equal access to credit (Article 13) and land (Article 16 and 21). International Labour Organisations (ILO) Gender Conventions: The ILO Conventions are legal instruments that cover a wide field of social concerns. A number of these deal specifically with women workers, including: - Maternity protection, No.3 (1919) - Equal renumeration for work of equal value, No.100 (1951) - Workers with family responsibilities, No.156 (1981) - Part-time, No.175 (1994) - Home work, No.177 (1996) World Summit on Social Development (WSSD), Copenhagen, 1995 Governments recognised the gendered implications of macroeconomics polices, especially the negative impacts of structural adjustment and the crippling effects of debt. Heads of state agreed upon ten concrete commitments, all of which addressed the important links between macro-economic and social development issues. Fourth World Conference on Women, Beijing, 1995

In this Conference it was stressed the importance of incorporating a gender perspective in all areas of policy and action. Governments agreed to a Platform for Action that consolidated and built on the gains made by women in each of the previous conferences. Under the three main themes of the conference, equality, development and peace, the Platform outlined goals and recommendations that addressed twelve critical areas of concern and specified that the primary strategy for implementation should be by means of gender mainstreaming. BIBLIOGRAPHY and RESOURCES Advocacy and Strategy Planning for the Third WTO Ministerial Conference in Seattle 30 November 3 December, International Coalition for Development Action and Global Publications Foundation, Autumn, 1999. BENERÍA, LIND, Cornell University; Engendering International Trade: Concepts, Policy and Action; Gender, Science and Development Programme and the United Nations Development Fund for Women, July, 1995. Deloitte & Touche; Report Relating to the Industry Consultation in the Context of Preparatory Work for GATS 2000 via the "SIS", Final Report, December 1999 European Commission, Directorate General for Trade; Opening World Markets for Services, a Guide to the GATS, Service Sectors, Communication services. Opening World Markets for Services, Towards GATS 2000. Where next? The GATS 2000 negotiations. http://gats-info.eu.int // http://www.europa.eu.int/comm/dgs/trade/index_en.htm European Commission, Directorate General Employment and Social Affairs; Equal Opportunities for women and men in the European Union, Annual Report, 1998. European Women s Lobby; Regional Alternative Report for the European Union on Beijing+5, May 2000. European Women s Lobby; Presenting Women s Perspectives on key issues for the European Union, December 1999. FONTANA, JOEKENS and MASIKA ; Global Trade expansion and liberalisation: gender issues and impacts, BRIDGE (Development and Gender), N 42, January 1998. GILLIAN, M.Marcelle; Transforming Information & Communication technologies for Gender Equality, Gender and Development Monograph Series # 9, United Nations Development Programme, May 2000. IFIAS (International Federation of Institutes for Advanced Study); Globalisation and gender Development Perspectives and Interventions; July, 1995. IFIAS, Globalisation and Gender Development perspectives and Interventions Unevenness : Inclusion and Exclusion form the benefits of Globalisation- ; 1992. LAL DAS, Bhagirath; The WTO agreements Deficiencies, imbalances and required changes, Zed Books, Third World Network, 1998.

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