Many Latin American countries have demonstrated very strong leadership in including gender-related provisions in their trade agreements. This section maps out and assesses the nature and scope of gender-explicit provisions, and gender-implicit provisions, and the benefits they can bring for women in the region.
Trade and Gender Review of Latin America
Abstract
Many Latin American countries have demonstrated leadership in including gender-related provisions in their trade agreements. Some of the distinguishing features of those countries’ approaches are their use of stand-alone trade and gender chapters, multiple co-operation-based provisions negotiated in agreements signed by countries in the region, and the implementation-focused approach employed in the most recently negotiated agreements. Moreover, all seven countries covered in the Review have joined the Global Trade and Gender Arrangement (GTAGA), a co-operation agreement that aims to increase women’s economic empowerment through trade.
Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Peru have signed 87 Free Trade Agreements (FTAs) so far.1 Of these, 40 contain gender-explicit provisions (Figure 7.1). Some of these agreements, and others, also contain implicit provisions that may not directly mention women or gender but can still protect or uphold gender-related concerns.
Note: Trade agreements notified to the WTO, in force as of January 2025 and included in the WTO Regional Trade Agreements database are included in this assessment. In addition, six agreements, in force by January 2025 but not yet included in the WTO RTA database (as of this writing) are also included in this assessment (taken from the ITC Rules of Origin Facilitator database) as these agreements are relevant for the purposes of this study. In the case of a trade agreement between a country and a group of countries, e.g. Chile-Central America, this was counted as one agreement regardless of differing dates of notification and enforcement. The total number of FTAs in this figure exceeds the total number of FTAs each of these seven countries have signed because they have signed some FTAs together.
Chile has included gender-explicit language or provisions that directly relate to women in 17 of the 32 trade agreements it has signed and that are currently in force.2 Argentina and Brazil, however, have only signed a single agreement that includes gender-explicit language and it is worth noting that Chile is a trade partner in both of these agreements (which are Argentina ― Chile3 and Brazil ― Chile4). Peru and Mexico have included gender-explicit provisions in some of their agreements but not in the majority of the agreements they have negotiated with their partners. Hence, this region represents a unique contrast of experiences from three groups of countries that are at different stages of readiness and appetite to include gender provisions in their trade agreements.
The following section maps out and assesses the nature and scope of gender-explicit provisions, before briefly considering the gender-implicit provisions and the benefits they can bring for women in the region.
Broadly, three types of explicit gender-related provisions5 can be identified in the FTAs signed by the seven Latin American countries. This categorization of provisions is adapted from the one proposed in the OECD study entitled Trade and Gender: A Framework of Analysis.6 The broad categorisation, which includes the most common types of gender-explicit provisions in the assessed agreements, contain three main types.
Cooperative and collaborative endeavours: This category includes gender-explicit provisions that actively seek to promote gender equality and women’s economic empowerment.
Reaffirmations: This category contains provisions reaffirming parties’ existing commitments to gender equality under international conventions or standards.
Policy Carve-outs: This category contains policy carve-outs that are meant to ensure that FTAs leave sufficient policy space for its parties to regulate matters of strategic importance or for a predetermined objective or matter.
The most commonly found provisions in FTAs signed by the seven Latin American countries are reaffirmations to international standards or conventions, followed by policy carve-outs and lastly, cooperation-style provisions (Figure 7.2).
Notes: This figure illustrates the percentage distribution of the 87 analysed FTAs based on the provision of the three specified categories. Trade agreements notified to the WTO, in force as of January 2025 and included in the WTO Regional Trade Agreements database are included in this assessment. In addition, six agreements, in force by January 2025 but not yet included in the WTO RTA database (as of this writing) are also included in this assessment (taken from the ITC Rules of Origin Facilitator database) as these agreements are relevant for the purposes of this study. In the case of a trade agreement between a country and a group of countries, e.g. Chile-Central America, this was counted as one agreement regardless of differing dates of notification and enforcement.
An interesting approach that emerges from the analysis of FTAs in this region is the addition of stand-alone trade and gender chapters. Of the ten countries that have signed FTAs with stand-alone chapters on trade and gender (i.e. Chile, Canada, Uruguay, Argentina, Brazil, Ecuador, Japan, the United Kingdom, New Zealand, and Israel), five are from Latin America. Chile has taken a lead and has included a stand-alone chapter on gender and trade in multiple FTAs (i.e. with Uruguay, Canada, Argentina, Brazil, Ecuador Paraguay and Mexico) as well as the Interim Agreement with the European Union that came into force in February 2025. Chile, together with Colombia, Mexico and Peru, is currently negotiating the inclusion of a trade and gender chapter in the Agreement Additional Protocol of the Pacific Alliance. Moreover, some countries such as Costa Rica have since included stand-alone chapters in FTAs that were not included in this assessment (Costa Rica – Ecuador) and the Mercosur countries are negotiating a "Trade and Women's Economic Empowerment" chapter with the United Arab Emirates.
The European Union and Chile have recently negotiated a standalone chapter titled “trade and gender equality” in the Interim Agreement on Trade.7 Parties in this chapter reaffirm their commitment to gender-specific international conventions such as the WTO's 2017 Joint Declaration on Trade and Women's Economic Empowerment, Beijing Declaration and Platform for Action, and Convention on the Elimination of All Forms of Discrimination Against Women. In addition to reaffirmations, the chapter contains a range of gender-explicit provisions including co-operation activities, minimum legal standards, common commitments relating to their laws and procedures, institutional arrangements, procedures on review and implementation, and procedures on dispute settlement.
The EU-Chile gender chapter is broad and far-reaching. Regarding common commitments, the Parties seek to ensure that they improve their relevant laws and policies for the promotion of equal rights and opportunities between men and women, promote public awareness in their territories, and take into account the objective of equality between men and women when formulating or implementing relevant policies or measures. Moreover, in addition to featuring ambitious labour standards, the chapter also contains a commitment on gathering sex-disaggregated data related to trade with a view to better understanding the different impacts of trade policy instruments on women and men.8 The parties also incorporate co-operation including commitments on improving the capacity and conditions of women workers, businesswomen, entrepreneurs and leaders. The parties also endeavour to share experiences and best practices relating to: policies and programmes in respect of promoting women's financial inclusion; women's leadership and the development of women's networks; their participation in decision-making positions in the public and private sectors; education in areas where they are underrepresented such as science, technology, engineering, mathematics (STEM) as well as innovation and business; enhancing the competitiveness of women-led enterprises to promote the internationalisation of small and medium-sized enterprises led by women; improving women's digital skills and access to online business tools and e-commerce platforms; advancement of care policies and programmes as well as work-life balance measures; and development of gender-based analysis of trade policies.9 This Agreement is a useful example of an institutional arrangement as the Parties in the agreement also outline the need to ensure the implementation and review of such commitments.10 However, what comes as a first-ever innovative is the application of the agreement's dispute settlement provisions to these gender-explicit commitments with both binding as well as compulsory jurisdiction.11
This approach has three clear benefits: higher visibility of previously agreed commitments, more room for exploration on what can be added and what might be beneficial to women’s economic advancement through trade, and an incentive for negotiators to gain expertise and understanding on these issues. The following paragraphs provide a deeper analysis of these provisions and others that are most commonly found in the 87 agreements under review.
7.1.1. Co-operative and collaborative endeavours
This category includes gender-explicit provisions that actively seek to promote cooperation and collaboration on gender equality and women’s empowerment, ranging from cooperation activities, best endeavour promises on cross-cutting issues such as labour standards, implementation or review related provisions or inclusions in preambles or objectives clause.
Many FTAs have featured affirmative provisions on co-operation activities and other endeavours to collaborate wherein countries agree to engage with their trade partners. Some FTAs include provisions that merely touch upon the prospect of enhancing gender equality without identifying precise activities to achieve that goal. Other FTAs delve into different aspects of women’s empowerment and focus on reducing barriers that impede women’s access to international trade. These provisions range from enhancing women’s access to education, skills development, digital training, health services and productive resources to increasing representation of women in decision-making and policy-making roles.
With very few exceptions, most of the gender-related co-operation-based provisions included in the region’s existing agreements are drafted with non-mandatory verbs and “soft” grammatical constructions. This soft nature of these provisions implies that compliance with them is voluntary and non-compliance is not associated with any legal consequence. Countries have generally left the implementation of these activities to depend on available resources and willingness. This is not unique to this region, as even in other regions, inclusion of women’s concerns so far has mostly been deeply rooted in the spirit of co-operation, wherein parties seek to use co-operation as a route to start a dialogue.
One example is the CPTPP,12 wherein Parties seek to co-operate on activities to help women business owners and workers benefit from the opportunities created by the agreement.13 These activities focus on information sharing, capacity building and increasing market access opportunities. They include providing advice or training; exchanging information and experiences on programmes to help women build skills and capacity; improving women’s access to markets, technology and financing; developing women’s leadership networks; and identifying best practices relating to workplace flexibility.
The Chile-Argentina Agreement presents another example in this respect. In Chile-Argentina, Parties include in the Preamble an affirmation to incorporate a gender perspective in international trade, and encourage equal rights in business, industry and the world of work.14 In the standalone chapter on gender and commerce (Chapter 15), the Parties recognise that inclusion of a gender perspective is crucial for the promotion of inclusive economic growth for achieving greater sustainable development.15 The Parties also agree that improving women's access to existing opportunities within their territories furthers sustainable development, and that there is a need to increase female labour participation, decent work, economic autonomy, and access to ownership of economic resources. This agreement includes several co-operation activities; these activities envision women as entrepreneurs, leaders, decision-makers and scientists. The activities envisaged by parties focus on improving educational or skills development opportunities that can translate to high-paid job opportunities for women such as STEM and information and communication technology (ICT). This FTA is unusual in this respect, as most trade agreements only consider co-operation focused on fields where women have traditionally been highly represented. Other activity areas for co-operation relate directly to the barriers commonly faced by women in the region, and include: promoting financial inclusion for women, including financial training, access to finance, and financial assistance; advancing women’s leadership and developing women’s networks in business and trade; fostering women’s representation in decision making and positions of authority in the public and private sectors, including on corporate boards; promoting female entrepreneurship and women’s participation in international trade; conducting gender-based analysis; and sharing methods and procedures for the collection of sex-disaggregated data, the use of indicators, and the analysis of gender-focused statistics related to trade.
The Chile-Uruguay Economic Agreement focuses on women workers as well as entrepreneurs in Chapter 14 on trade and gender.16 Chapter 14 seeks to promote the development of skills and competencies of women in labour and business; improve women's access to technology, science, and innovation; promote financial women's access to technology, science, and innovation; develop women's leadership networks; and further the participation of women in decision-making positions in the public and private sectors and promote female entrepreneurship (Article 14.3). Similar provisions are found in the Chile-Ecuador Trade Agreement.17
An example of a broad-reaching co-operation agreement can be found in GTAGA which seeks to promote an inclusive approach towards international trade, eliminate barriers women face in accessing trade opportunities, and increase the number of women entrepreneurs in trade. It can be seen as a landmark initiative which is both innovative and comprehensive in its scope, and strongly geared toward improving women's access to trading opportunities. The participants in the Arrangement acknowledge that women's empowerment, and their enhanced participation as employees and entrepreneurs, contributes to prosperity, competitiveness, and the well-being of society.18
The GTAGA participants, recognising the importance of gender equality laws and regulations, undertake to enforce their laws and regulations promoting gender equality and improve women’s access to economic opportunities. Through the Arrangement, the participants also seek to encourage private companies to assume voluntary sustainability standards by incorporating gender equality standards, guidelines, and principles in the workplace. Similar to a range of trade agreements, the Arrangement also includes a list of co-operation activities that its participants are encouraged to engage in, principally through dialogues, technical assistance, exchange of experts, and the sharing of information and best practices. The list of co-operation activities is comprehensive, as it includes but is not limited to: capacity-building; access to education, including digital skills development; measures to foster leadership and entrepreneurship; business development; access to networks and trade missions; and government procurement. The Arrangement also establishes a working group and a contact point for trade and gender in each participating country that is responsible for the implementation and reporting on the activities taken by participants in respect of these commitments.
In other trade agreements, explicit gender-related provisions are often tied to specific cross-cutting issues such as labour standards. In the US-Colombia19 and US-Peru20 FTAs, parties incorporate several labour standards that concern women in their annexes on labour cooperation. These annexes reflect parties' willingness to work on labour programs related to women such as the elimination of discrimination in respect of employment and occupation. They also exhibit parties’ inclination to implement their labour standard commitments under ILO Conventions. These inclusions are important since labour standards such as workers’ rights, reasonable work hours, parental leave or childcare, occupational safety and health, minimum wage, and anti-discrimination directly impact women as both workers and employers.21
Occasionally, FTAs have featured other forms of collaborative endeavours wherein countries have included gender equality as a guiding principle or an objective of the agreement.22 Other forms of best endeavour initiatives may be seen in the inclusion of procedural provisions wherein countries have identified specific institutional and procedural arrangements to aid the implementation, monitoring and/or review of cooperative or collaborative endeavours.23 Affirmative commitments to collaborate may also be found in the form of guidelines and principles on corporate social responsibility that may explicitly relate to gender equality among other considerations.24 However, the most commonly included explicit endeavours are those on cooperation activities.
7.1.2. Reaffirmations to international standards or conventions
This category contains provisions wherein parties reaffirm their existing commitments to gender equality in international policy instruments such as conventions, treaties or frameworks. Latin American countries have reaffirmed their commitments undertaken in other international instruments most frequently in the following agreements: the United Nations 2030 Agenda and Sustainable Development Goals,25 the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) 1979,26 the Universal Declaration of Human Rights,27 the International Covenant on Civil and Political Rights,28 the International Covenant on Economic, Social, and Cultural Rights,29 the Beijing Declaration of 1995 and Platform for Action,30 as well as the International Labour Organization Conventions (such as number 100 on equal pay, number 111 on discrimination in employment and occupation, and number 156 on workers with family responsibilities).
Chile-Uruguay was the first trade agreement reaffirm their commitments in this way, although instead of identifying a set of international instruments as commonly done in most of the agreements where such provisions are found, the Parties reaffirmed their international commitments on gender issues in general without mentioning a specific list of instruments. Parties also specify that for them, the priority agreements are those that relate to ‘equal pay for men and women, maternity protection, reconciliation of work and family life, decent work for domestic workers, family responsibility, among others’.31 In this sense, its reaffirmation-based provisions are much less specific than most of the similar inclusions in the other agreements.
In other agreements, such reaffirmations are more specific, as parties spell out the precise instruments they want to recall or reaffirm their commitments to. The parties in the Argentina – Chile FTA32 for example refer to specific international conventions that are directly related to women such as the UN SDG 2030 and the CEDAW 1979. Another interesting example is that of the EU-Chile Interim Agreement, wherein parties reaffirm their commitments to a range of general, as well as gender-specific, international instruments such as the ILO Declaration on Fundamental Principles and Rights at Work, ILO Declaration on Social Justice for a Fair Globalization, Universal Declaration of Human Rights, the WTO's 2017 Joint Declaration on Trade and Women's Economic Empowerment, Beijing Declaration and Platform for Action, and CEDAW.
By making these references, parties to these agreements recall their commitments to empower women and girls. They also seek to acknowledge the importance of women’s participation in the labour market and in sustainable and inclusive economic growth and prosperity. Even though these reaffirmations can send an important signal to the international community about the priorities of these countries, they are nevertheless instances where parties merely recall their already assumed commitments. These provisions do not identify specific positive actions Parties should take in respect of women empowerment. Moreover, such provisions are generally included without any effort to identify mechanisms that might be responsible for the implementation of such previously agreed promises. Nevertheless, these could provide parties an indirect route to include values or concerns that they may not have otherwise been able to include in the agreements for several negotiating complexities. However, for this to happen, it is important that countries consider devising monitoring and implementation processes to ensure compliance with their commitments.
7.1.3. Policy carve-outs
In trade agreements, parties include a range of policy carve-outs to protect their policy autonomy while liberalising their markets. These policy carve-outs have taken two main forms with respect to gender: reservations and exceptions. Reservations, when typically drafted as “right to regulate” provisions, are styled as the act of retaining, withholding, or setting apart a right to protect a certain social or public welfare interest. In reservation carve-outs, parties pinpoint the relevant domestic law which would have otherwise breached the obligations in the FTAs, and pre-emptively carve-out those laws in either reservation lists or in the agreement’s main text.
Exceptions are different to reservations since instead of directly pinpointing a given law, parties usually have mutual agreements on the necessity of pursuing certain policy objectives listed in the provisions of that agreement under certain pre-determined conditions. Exceptions permit parties to have policy autonomy under certain conditions, including for the requirements that domestic law seeks to pursue in respect of policy objectives that are previously agreed by parties (examples include public morals, public health, and national security) over trade liberalization, non-discrimination, and market access rules under certain conditions. So far, explicit exceptions in respect of women have not been included in trade agreements negotiated in Latin America. However, countries have included a range of implicit exceptions that may indirectly include or relate to women’s interests.
Reservations are a more accepted, common, and explicit form of provisions negotiated in respect of women. Reservations have appeared quite frequently in trade agreements negotiated by Latin American countries styled as ‘right to regulate’ provisions. These reservations are mostly found in the agreements’ annexes wherein parties include their schedules of specific commitments. For example, Article 10.2 of the Chile - South Korea FTA contains a right to regulate childcare services.33 A similar reservation can be found in the Annex II of the Peru – South Korea FTA.34 In these agreements, countries reserve their policy space to regulate specific areas that may affect women’s health and maternal concerns such as healthcare, nutrition and childcare.35
Other examples of such policy carve-outs from the region include the right to subsidise social services for protection of maternity needs including childcare and women-favouring government procurement schemes.36 One such example is the United States – Dominican Republic – Central America,37 wherein parties reserve a right to craft government procurement schemes that may be favourable for certain groups including women.38 Another example is found in the USMCA,39 which provides for a special reservation to protect market access of Indigenous women engaged in cross border trade in services. This cultural reservation aims to preserve culture, languages, knowledge, traditions, and identity with a special focus on the integration of women and promotion of gender equality,40 and seeks to simplify women’s market access across borders.
As these examples show, parties in such provisions reserve their right to ensure that trade liberalization under a given FTA does not limit their policy space to regulate the areas of strategic importance such as public welfare including the provision of social services or measures that may benefit minorities or marginalised groups. These are generally drafted with binding expressions, and hence they seem to create legal obligations and rights for the Parties. These provisions can help countries guarantee benefits and protections for women that they otherwise may not be able to extend either through their domestic laws or through a legal standard, as that might require changes in their domestic laws.
Gender implicit provisions are those that do not contain gender-explicit language but are nonetheless relevant to women, and can be categorised in four main categories: (1) Promotion of SMEs, (2) Digital trade, (3) Government procurement, and (4) Trade finance and access to finance.41 This list is not exhaustive and other varieties of provisions may also benefit women, such as those relating to investment, technical barriers to trade and trade facilitation.
7.2.1. Promotion of small businesses
Globally, about 252 million women are entrepreneurs (Elam et al., 2019[1]) Women own close to 10 million of the emerging economies’ Micro and Small Enterprises (MSMEs).42 Trade agreements can enhance the market access opportunities for small businesses owned or managed by women and a number of recent agreements from the region have included a provision to this effect.
One relevant agreement is the USMCA, as its parties commit to work on enhancing trade and investment opportunities for SMEs in the region.43 In particular, the agreement provides opportunities for SMEs to increase their exports and their participation in global and North American value chains. They seek to achieve this in multiple ways that include: (a) promotion of co-operation between the Parties’ small businesses through dedicated SME centers, incubators and accelerators, and export assistance centers; (b) engage in activities to promote SMEs owned by under-represented groups, including women; (c) work on improving SME access to capital and credit, SME participation in government procurement opportunities, and helping SMEs adapt to changing market conditions; and (d) encourage SMEs participation in web-based platforms to share information and best practices to help them connect with international suppliers, buyers, and other potential business partners. The Parties in the agreement have also sought to facilitate the region's SMEs' participation in government procurement as they commit to providing notices of intended procurement in a single electronic portal and encouraging it by electronic means, thus increasing transparency and efficiency for SMEs and their businesses.44 The agreement also eliminates local presence obligations for cross-border service providers, which clearly benefits SMEs by removing the unnecessary burden of opening an foreign subsidiary as a requirement for doing business.45
In the Chile-Australia Agreement,46 the Parties commit to exchanging information on their respective approaches to maximise access for small and medium enterprises to the government procurement market.47 Moreover, protection of SMEs interests in respect of business and employment opportunities also appears as an area of co-operation in the Agreement as the Parties seek to work on enhancing the identification and development of innovative co-operation initiatives capable of providing added value to the bilateral relationship.48 A similar commitment to co-operate is found in Chile-Thailand49 and EU-Chile.50
Another good practice example is the EU-Mexico FTA, as Parties in their chapter on investment seek to co-operate on a number of things, among them the development of joint investment mechanisms, particularly with small and medium-sized enterprises.51 The Parties also seek to build a favourable environment for the development of small and medium-sized enterprises through initiatives such as the promotion of contacts between economic agents, joint investments and the establishment of joint ventures, the creation of information networks, facilitation of access to financing, provision of information, and stimulation of innovations.52
7.2.2. Digital trade
It was seen above that internet access, while high in most Latin American countries under review, is lower outside urban centres, and fixed broadband costs remain high in some countries, putting women-led firms that tend to be smaller and less well financed at a disadvantage in accessing digitally enabled trade.
There are few examples of trade agreements where parties have acknowledged this barrier. The Digital Economy Partnership Agreement (DEPA)53 between Chile, New Zealand, and Singapore, now joined by Korea, is a leading example as it includes specific language that emphasises digital inclusion for marginalised groups including women: Parties recognise 'the importance of expanding and facilitating digital economy opportunities by removing barriers' and co-operating “on matters relating to digital inclusion”.54 Further, Joint Committees and Contact Points are established to oversee the implementation of these provisions.55
In the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),56 Parties consider undertaking co-operative activities aimed at enhancing women’s access to technology. Moreover, CPTPP includes binding commitments to allow the free flow of data,57 prohibits data localisation requirements that could function as an impediment to entering the market for small businesses,58 permits the use of all devices on the internet,59 and requires all groups to adopt privacy protection regulations60 (Giordano et al., 2017[2]) These are vital requirements for small businesses owned by women as they require an enhanced protection against cybercrimes and privacy, and lower costs to enter and access digital trade opportunities. In EU-Peru and Colombia, the Parties establish an institutional mechanism to assist MSMEs in overcoming obstacles they face in the use of electronic commerce by improving the security of electronic transactions.61
Another interesting example is seen in USMCA, wherein a new chapter on Digital Trade (Chapter 19) contains robust provisions that are aimed to support internet-enabled small businesses and e-commerce exports. As commerce across North America becomes increasingly digitalised in all sectors, the potential for positive impact from this part of USMCA cannot be underestimated for small businesses that are owned or managed by women entrepreneurs. The chapter can lower barriers to trade for women-owned businesses as it prohibits the application of customs duties and other discriminatory measures to digital products distributed electronically, such as e-books, videos, music, software, and games.62 It also seeks to bring down the cost and complications entailed in cross-border transactions as parties seek to maintain a legal framework governing electronic transactions to facilitate digital transactions, which helps businesses in avoiding unnecessary regulatory burden on electronic transactions and permits use of electronic authentication and electronic signatures while guaranteeing confidentiality and enforceable consumer protections in the digital marketplace.63 Moreover, owing to its provisions on enhancing internet access and its affordability, the agreement may also help to expand the range and access of digital resources to women.64
Digital trade can have a positive impact on women’s livelihoods and economic empowerment by supporting their business growth and diversification. However, women-led small enterprises continue to face digital and gender-specific challenges when they seek to access the benefits of e-commerce. Increasing women's participation in the digital economy and increasing their e-commerce entrepreneurial capacity requires bringing together three related aspects, i.e. access to digital learning, to digital infrastructure, and to e-commerce platforms and opportunities (Anoush Der Boghossian, 2023[3]). In this sense, two problems can be seen with the existing inclusions in the region. These recent FTAs that mention the related concerns mainly focus on the need to enhance women businesses’ access to digital learning or infrastructure, and they continue to remain silent on “how” they might put these promises into action. As a result, most of the existing agreements do not include concrete commitments such as the means countries may employ to enhance women's access to affordable and reliable digital infrastructure, digital financial wallets and e-banking, and e-commerce platforms which could lead to an overall increase in women’s participation in the economy. The use of digital platforms for example may offer women many additional opportunities, including the possibility to overcome challenges related to mobility as women are generally less mobile than men, accessing new markets and knowledge, connecting with potential markets and customers, and enjoying flexible work hours and modes.
7.2.3. Access to government procurement opportunities
Twelve per cent (12%) of GDP globally is spent on public procurement, and in many high-income countries, the average share of public procurement to GDP is as high as 25%.65 However, accessing large government contracts that are often subject to complex tender processes can be challenging for SMEs and even more so for women-led SMEs as women business leaders may not have mentors or associates that are familiar with these processes. Some governments provide procurement-related assistance to SMEs, or firms led by women, to encourage their participation in public tenders often through capacity building programs or in the form of quotas or price preferences for certain types of firms. Such measures imply that in a trade agreement, countries need to set apart their “right to regulate” since these measures would otherwise fall under the scope of the agreement. In the United States ̶Peru agreement, for example, Parties set out a reservation in the Government Procurement Chapter, wherein they reserve the right to regulate 'preferences or restrictions associated with programs promoting the development of distressed areas, or businesses owned by minorities, disabled veterans, or women' specifically with regards to government procurement.66
In other agreements, countries have gone beyond such policy carve-outs as they have sought to assume affirmative commitments in respect of information exchange, communication and transparency. In the Australia-Chile agreement, for example, the Parties commit to enhancing the exchange of information relating to the development and use of electronic communication in government procurement systems and make efforts to increase understanding of their respective government procurement systems. They also clarify that one of the main aims of information exchange is to maximise access for SMEs to the government procurement market.67 A similar commitment is found in EFTA-Central America, where Parties have sought to enhance the use of 'electronic means of communication to permit efficient dissemination of information on government procurement, particularly as regards tender opportunities offered by procuring entities, while respecting the principles of transparency and non-discrimination'.68 These commitments, even though seemingly gender-neutral, can benefit women entrepreneurs that own or manage small businesses in these countries, as one of the major obstacles women-owned businesses face is the lack of access to relevant information and understanding of the systems and processes.
In the United States ̶ Colombia Trade Promotion Agreement, the Parties provide for a Committee on Procurement that will be responsible for ensuring that efforts are made to increase understanding of their respective government procurement systems, with a view to maximising access to procurement opportunities, especially for small business suppliers. To achieve this, the Committee can foster trade-related technical assistance, including training of government personnel or interested suppliers on specific elements of that Party’s government procurement system, in co-ordination with the Committee on Trade Capacity Building.69
However, to strengthen such policies, and for countries to start invoking such favourable provisions that are in a way based on positive discrimination, it is crucial to agree to a precise definition of women-owned enterprises. This is where the International Organization for Standardization’s (ISO) definition of women-owned and women-led companies can come in handy.70 It may be useful to integrate this definition in current trade and procurement policies; however, it is important this definition is widely publicised and made freely accessible without any cost repercussions for using it.
7.2.4. Trade finance and access to finance
Lack of access to finance and trade finance are key barriers that impede women’s entrepreneurial efforts in international trade. Women-led firms face a variety of obstacles when it comes to growing their businesses, including less access to finance and trade financing instruments (see challenges to women-led businesses in the preceding chapter on women entrepreneurs and business leaders) (OECD, 2022[4]).
Some FTAs in the region have responded to this challenge as they have included provisions on increasing women’s access to finance and trade financing opportunities. One such example is Australia – Peru,71 wherein the Parties in the Development Chapter seek to exchange information and experience, and provide training to help women enhance their access to finance and financial instruments.72 The Chile-Uruguay73 FTA includes a similar commitment in its dedicated Chapter on Gender and Commerce; the provision specifically outlines the need to co-operate on promoting financial inclusion and financial education for women.74 A similar provision is included in Argentina-Chile FTA,75 wherein Parties seek to focus on enhancing women's businesses access to credit, financial education and financial assistance.76
These examples show that various countries in existing trade agreements have committed to and recognised the need to enhance women’s access to finance or financial inclusion, but the countries so far have not gone into how they can enhance women's access to finance as it depends on several factors including access to basic financial services, trade finance instruments, affordable credit, and acceptable collaterals. Hence, what remains to be done are concrete commitments and plans on how parties can enhance women's access to finance. Moreover, when countries assume commitments in relation to financial access, it is important for them to acknowledge that both public and private stakeholders of the financial sector play an important role in supporting private sectors’ access to finance. Hence, to put such commitments into action, it is important for countries to develop transparent and predictable frameworks for collaborating with private stakeholders through public-private partnerships (PPP) or blended finance mechanisms.77
References
[3] Anoush Der Boghossian, A. (2023), “Finding Feet on Trade Agreements: Empowering Women Entrepreneurs”, Legal Issues of Economic Integration, Vol. 50/1, pp. 13-40, https://kluwerlawonline.com/journalarticle/Legal+Issues+of+Economic+Integration/50.3/LEIE2023002.
[1] Elam, A. et al. (2019), “Women’s entrepreneurship report”, Global Entrepreneurship Report, https://www.gemconsortium.org/file/open?fileId=50405.
[2] Giordano, P. et al. (2017), “Beyond the Recovery: Competing for Market Share in the Digital Era”, Trade and Integration Monitor, Vol. Inter-American Development Bank, https://publications.iadb.org/en/trade-and-integration-monitor-2017-beyond-recovery-competing-market-share-digital-era.
[4] OECD (2022), Financing Growth and Turning Data into Business: Helping SMEs Scale Up, OECD Studies on SMEs and Entrepreneurship, OECD Publishing, Paris, https://doi.org/10.1787/81c738f0-en.
Note that only trade agreements notified to the WTO, in force as of January 2025 and included in the WTO Regional Trade Agreements database are included in this assessment. In addition, six agreements, in force by January 2025 but not yet included in the WTO RTA database (as of this writing) are also included in this assessment (taken from the ITC Rules of Origin Facilitator database) as these agreements are relevant for the purposes of this study. In the case of a trade agreement between a country and a group of countries, e.g. Chile-Central America, this was counted as one agreement regardless of differing dates of notification and enforcement.
← 1. Trade agreements notified to the WTO, in force as of January 2025 and included in the WTO Regional Trade Agreements database are included in this assessment. In addition, six agreements, in force by January 2025 but not yet included in the WTO RTA database (as of this writing) are also included in this assessment (taken from the ITC Rules of Origin Facilitator database) as these agreements are relevant for the purposes of this study. In the case of a trade agreement between a country and a group of countries, e.g. Chile-Central America, this was counted as one agreement regardless of differing dates of notification and enforcement.
← 2. Trade agreements notified to the WTO, in force as of January 2025 and included in the WTO Regional Trade Agreements database are included in this assessment. In addition, six agreements, in force by January 2025 but not yet included in the WTO RTA database (as of this writing) are also included in this assessment (taken from the ITC Rules of Origin Facilitator database) as these agreements are relevant for the purposes of this study. In the case of a trade agreement between a country and a group of countries, e.g. Chile-Central America, this was counted as one agreement regardless of differing dates of notification and enforcement.
← 3. Free Trade Agreement between Argentina and Chile (signed 2 November 2017; entry into force 1 May 2019), hereinafter referred as Argentina-Chile FTA).
← 4. Free Trade Agreement between Brazil and Chile (21 November 2018; entry into force 25 January 2022), hereinafter referred as Brazil - Chile FTA
← 5. Explicit provisions are those that are drafted with women or gender related language and use the following terms: mujer, mujeres, género, niñas - niños, sexo, equidad, maternidad, paternidad, paternal, maternal, igualdad, Atencion infantil [in Spanish]; women, girl, woman, girls, maternity, gender, childcare, sex and mother [in English]. Only those explicit provisions are included in this study that includes text that offers commitment, vision, or actions to challenge gender inequalities and empower women through international trade.
← 6. This broad categorisation is adapted from Jane Korinek, Evdokia Moïsé, Jakob Tange (2021), “Trade and Gender: A Framework of Analysis”, OECD Trade Policy Paper N° 46, 2021 [loosely based on a categorisation in International Trade Centre (2019), From Europe to the World: Understanding Challenges for European Businesswomen].
← 7. Interim Agreement on Trade between the European Union and the Republic of Chile Agreement (signed 13 December 2023), Chapter 27.
← 8. Article 27.3.
← 9. Article 27.4.
← 10. Article 27.5.
← 11. Article 27.6.
← 12. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (signed 8 March 2018; effective 30 December 2018) CPTPP, Article 23.4 (hereafter referred to as CPTPP).
← 13. CPTPP, Article 23.4.
← 14. Acuerdo Comercial Entre La República Argentina Y La República De Chile (signed 2 November 2017; entry into force 1 May 2019) Preamble.
← 15. Ibid, Article 15.1.
← 16. Acuerdo De Libre Comercio Entre La República De Chile Y La República Oriental Del Uruguay (signed 4 October 2016; entry into force13 December 2018).
← 17. Chile - Ecuador Economic Complementation Agreement No. 75 (signed 13 August 2020; entry into force 16 May 2022), hereinafter referred as Chile - Ecuador ECA.
← 18. See, for example, https://www.international.gc.ca/trade-commerce/inclusive_trade-commerce_inclusif/itag-gaci/arrangement.aspx?lang=eng.
← 19. Colombia - United States Trade Promotion Agreement (enforced, 15 May 2012) Hereinafter referred as Colombia - United States TPA, Annex 17.6
← 20. Free Trade Agreement between the United States of America and Peru (enforced, 01 February 2009), Annex 17.6
← 21. Marcus Gustafsson and Amrita Bahri, ‘Progressive Trade: Labour and Gender’, in Daniel Bethlehem, Donald McRae, Rodney Neufeld, and Isabelle Van Damme (eds), Oxford Handbook of International Trade Law, Second Edition (Cambridge University Press 2023)
← 22. For example, CPTPP, Preamble.
← 23. EU-Chile, Article 27.5.
← 24. Argentina-Chile, Article 8.17.
← 25. Transforming Our World: The 2030 Agenda for Sustainable Development, United Nations (A/RES/70/1) (New York, 25 to 27 September 2015).
← 26. Convention on the Elimination of All Forms of Discrimination against Women, Adopted and opened for signature, ratification, and accession by United Nations General Assembly (resolution 34/180) (New York, 18 December 1979).
← 27. International Covenant on Civil and Political Rights 1966, 999 UNTS 171, Article 3 (mentions women’s right to equality).
← 28. International Covenant on Economic, Social and Cultural Rights, 1966, 993 UNTS 3, Articles 3 and 7 (mention women’s right to equality and women’s right to a fair wage).
← 29. The Beijing Declaration and the Platform for Action: Fourth World Conference on Women, Doc. A/CONF. 177/20, 15 September 1995 (contains a progressive blueprint for advancing women’s empowerment).
← 30. In Focus Programme on Promoting the Declaration (2002), The International Labour Organization's Fundamental Conventions. International Labour Office.
← 31. Chile-Uruguay FTA, Article 14.2.
← 32. Argentina and Chile Free Trade Agreement, Article 15.1 paragraph 2; ibid, Article 15.2
← 33. Free Trade Agreement between the Republic of Korea and the Republic of Chile (enforced, 1 April 2004)
← 34. Peru-South Korea FTA.
← 35. Ibid.
← 36. Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, on the one part, and the United Mexican States, on the other (enforced October 2000).
← 37. Free Trade Agreement between Central America, the Dominican Republic, and the United States of America (signed 4 August 2004; entry into force 1 March 2006) (hereafter referred to as CAFTA-DR).
← 38. Ibid, Annex 9.1.2(b)(i).
← 39. USMCA, Annex 15-E (see Note 5).
← 40. Ibid.
← 41. Implicit provisions are those that do not contain women or gender specific language but nevertheless seek to benefit women. In this study, the implicit provisions are found in thematic chapters on: morals, human rights, social welfare, labour rights, poverty, corporate social responsibility, Micro, Small and Medium Sized Enterprises (MSMEs) or Small and Medium Sized Enterprises (SMEs), e-commerce or digital trade, investment, business assistance, government procurement, trade finance or financial services and trade facilitation [in English]; Ética-Moral Pública, colectivo, Trabajo Infantil-de menores, Desarrollo Sustentable, Pobreza, Desarrollo Social, Responsabilidad Social Corporativa-Empresarial-Colectiva, MiPyME (Micro Pequeñas y Medianas Empresas) o PyME (Pequeñas y Medianas Empresas), comercio electrónico, comercio por internet o comercio en línea, inversión, asistencia empresarial, contratación pública, financiación del comercio o servicios financieros, facilitación del comercio [in Spanish].
← 42. According to the World Bank, Micro, Small and Medium Enterprises (MSMEs) are defined as follows – micro enterprises: 1–9 employees; small: 10–49 employees; and medium: 50–249 employees. However, the local definition of MSMEs varies from country to country, and is based not only on number of employees, but also on other variables such as turnaround and assets. [Khrystyna Kushnir, Melina Laura Mirmulstein, and Rita Ramalho, “Micro, Small, and Medium Enterprises around the World: How Many Are There, and What Affects the Count?” (IFC & World Bank, 2010), https://www.mfw4a.org/sites/default/files/resources/Micro%20Small%20and%20Medium%20Enterprises%20Around%20the%20World%20How%20Many%20Are%20There%20and%20What%20Affects%20the%20Count.pdf, accessed 7 August 2021.
← 43. USMCA (see Note 5), Article 25.2.
← 44. Ibid, Article 13.20.
← 45. Ibid, Article 15.10.
← 46. Free Trade Agreement between Chile and Australia (signed 30 July 2008; entry into force 6 March 2009), hereafter referred as Australia - Chile FTA.
← 47. Ibid, Article 15.24.
← 48. Ibid, Article 18.2.
← 49. Free Trade Agreement between the Government of the Republic of Chile and the Government of the Kingdom of Thailand (signed 4 September 2013; entry into force 5 November), hereafter referred as Chile-Thailand FTA, Article 11.3.
← 50. Ibid, Article 44.
← 51. Agreement Establishing an Association between the European Community and the Republic of Chile (signed 18 November 2002; entry into force 1 February 2003), hereafter referred as Chile - EC Association Agreement (2002), Article 15.
← 52. Ibid, Article 17.
← 53. Digital Economy Partnership Agreement (“DEPA”) between Singapore, Chile, and New Zealand (enforced as of 7 January 2021).
← 54. Ibid, Article 11.1.
← 55. Ibid, Article 12.1.
← 56. CPTPP, Article 23.4.
← 57. Ibid, Article 14.11.
← 58. Ibid, Article 14.13.
← 59. Ibid, Article 14.10.
← 60. Ibid, Article 14.08.
← 61. Trade Agreement between the European Union and its Member States, on the one hand, and Colombia, Peru and Ecuador, on the other (signed 26 June 2012; entry into force 1 June 2013) hereafter referred to as Colombia - Ecuador - EU - Peru Trade Agreement, Article 109.
← 62. USMCA (see Note: 5), Article 19.3.
← 63. Ibid, Article 19.5, Article 19.6, Article 19.7 and Article 19.8.
← 64. Ibid. In Article 19.10, Parties recognise the need to increase access to digital resources such as the internet and its affordability to its populations in the regions, as opportunities in e-commerce are closely linked to the availability of the Internet, its affordability, and the skills required to use it.
← 65. See Erica Bosio and Simeon Djankov, 'How large is public procurement?' (World Bank Blogs, February 05, 2020), https://blogs.worldbank.org/en/developmenttalk/how-large-public-procurement#:~:text=The%20average%20share%20of%20public,percent%20in%20low%20accountability%20countries.
← 66. Government Procurement Chapter 9, Notes to the Schedule of the United States.
← 67. Ibid, Article 15.24.
← 68. Free Trade Agreement between the EFTA States and the Central American States (signed 24 June 2013; entry into force 19 August 2014), hereinafter referred as EFTA - Central America FTA. Article 7.5.
← 69. Colombia-United States Trade Promotion Agreement (signed 22 November 2006; entry into force 15 May 2012) hereafter referred as Colombia - United States TPA, Article 9.15.
← 70. ISO, ‘IWA 34:2021(en), Women's entrepreneurship — Key definitions and general criteria’ https://www.iso.org/obp/ui/#iso:std:iso:iwa:34:ed-1:v1:en.
← 71. Australia - Peru Free Trade Agreement (signed 12 February 2018; entry into force 11 February 2020), hereafter referred as Australia – Peru FTA.
← 72. Ibid, Article 22.4.
← 73. Chile – Uruguay FTA (see Note 18).
← 74. Ibid, Article 14.3, Chapter 14.
← 75. Free Trade Agreement between the Argentine Republic and the Republic of Chile (Argentina – Chile) (enforced 1 May 2019).
← 76. Ibid, Article 15.3.
← 77. Blended finance is the strategic use of development finance for the mobilisation of additional finance towards sustainable development in developing countries.