Why closing gender gaps in trade matters for Latin America's growth

Trade has the potential to be a powerful catalyst for gender equality. But realising that potential requires tackling the persistent and systemic barriers limiting women’s full participation in the economy. That’s why at the OECD, we’ve developed a framework to better understand the gender impacts of countries’ trade policies on women workers, consumers and business leaders, and for ensuring inclusive policymaking processes. The recent OECD Trade and Gender Review of Latin America focuses on seven key countries:  Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, and Peru, each offers a dynamic mix of trade openness, economic diversity, and gender-responsive policy innovation. Yet despite this progress, strong gender norms and unconscious bias continue to hinder advancement. Gender gaps in participation in labour markets and trade remain wide. Closing these gaps may represent low-hanging fruit, an untapped opportunity for inclusive economic growth in the region.

There’s a strong case for empowering women economically, not just because it’s the right thing to do, but because it’s smart economics. Reducing gender gaps can unlock significant growth potential. Across Latin America, barriers such as entrenched social norms, restricted access to credit, and limited digital connectivity are holding back individuals, firms, and economies alike.

Jobs linked to trade tend to be better paid, more productive, and more likely to be in the formal economy. Yet women in Latin America are up to 40% less likely than men to hold export-oriented jobs. Why? Because women are disproportionately represented in non-traded sectors like education, healthcare, and personal services, including face-to-face services such as childcare and beauty industries.

This occupational segregation limits women’s access to the economic benefits that trade can offer. And the picture is even more complex for highly skilled women, many of whom work in sectors that are less traded.

The gender gap is also evident in business leadership. Women are substantially less likely than men to lead businesses, and the businesses they lead are substantially less likely to engage in trade. Ten per cent of women-led firms are engaged in international trade in the seven Latin American countries reviewed, compared to 14% of men-led firms. Both women-led and men-led firms in Latin America export less compared to their counterparts in the OECD.

Yet Latin America is also leading the way in some areas. Encouragingly, the gender export gap is narrower here than in OECD countries overall, and the region is taking real steps to close it.

Since 2016, nearly half of all trade agreements signed by the countries in our Review have included gender-related provisions, reflecting growing political will. All seven countries are also members of the Global Trade and Gender Arrangement (GTAGA), a forward-looking cooperation initiative to make trade more inclusive.

Many countries are beginning to turn these commitments into meaningful action. While some have introduced gender-focused public procurement policies to support women-led businesses, others are expanding digital infrastructure to help women entrepreneurs engage in e-commerce and global markets. At the same time, several governments are taking steps to formalise women’s employment and streamline regulations to boost participation in formal trade.

Despite these efforts, major challenges persist, particularly in the informal economy, where many women work without contracts, social protection, or legal rights. Migrant, refugee, and Indigenous women are especially vulnerable, often lacking access to healthcare, pensions, and labour protections — conditions that increase the risk of exploitation and limit their economic mobility.

The Review goes beyond diagnosis — it offers practical, actionable solutions. These include simplifying trade and customs procedures, enhancing gender-disaggregated data collection, expanding digital access, and integrating gender considerations into trade agreements and national strategies.

Ultimately, gender equality in trade is not a niche concern; it’s central to building sustainable, inclusive economies. Women across Latin America are already innovating, exporting, and leading. With the right policies and support, intention can transform into action, bringing more women from the margins to the mainstream of trade.