Quick win No. 6

A public commitment to strengthen and make visible the participation of women in the services sector and the role of women-owned Micro, Small and Medium Enterprises (MSMEs), including as suppliers of services to firms in the domestic market, which then export.

Trade in services has grown exponentially in recent decades, and services play an increasing role in employment, economic output, and trade in countries at all levels of development. According to WTO estimates, services value-added accounts for close to a half of all world goods and services trade, thus playing a crucial role in global value chains.

Services also play a noteworthy role in women’s employment. A 2019 WTO report shows that women’s participation in services has risen gradually over the past three decades and is positively correlated with economic development. Participation ranges from around 30% in LDCs, 50% in other developing economies and over 85% in developed economies. Women’s employment also remains uneven across services sectors. Women’s employment is largely concentrated in the least traded services sectors, such as education, health and social services, thus reducing their opportunities to engage in trade. Women’s employment is at its lowest in Information and Communications Technology (ICT), one of the most promising and highly traded services sectors. Furthermore, services play an important role in women’s entrepreneurship: the share of women-owned and womenmanaged firms is on average higher in services than in manufacturing, a trend that holds across all regions of the world.

The COVID-19 pandemic, however, has notably altered the short-term outlook for women. The trade disruption generated by the COVID-19 pandemic has had a larger impact in economic sectors in which women’s participation is higher, particularly, tourism and business travel services directly affected by travel restrictions.

Nevertheless, trade in services has enormous potential to generate more employment and income opportunities for women. Despite the opportunities that this sector represents, women are underrepresented in the most traded services sectors. There is therefore a need to strengthen women and women-owned MSMEs’ export capacity and make visible their role as suppliers of services to firms in the domestic market, which then export.

It is proposed that the WTO Informal Working Group on Trade and Gender include in its work program the following specific actions.

Mobilization of resources

There is a need to mobilize resources (including donors, international financial institutions and other international organizations) for capacity building programs and initiatives which target women and women-owned MSMEs in the services sector, including through Aid For Trade, as well as the ITC’s Women and Trade Programme and “SheTrades.” These programs and initiatives can be oriented, inter alia, towards:

  • providing training on ICT and digital technologies that enable women entrepreneurs and MSMEs to reach customers globally, access information and online training, as well as government e-services, to help to bridge the digital divide;

  • helping women engage more actively in international trade and investment by developing sustainable businesses, with a focus on trade in services with greater value added; 11

  • facilitating and promoting women’s access to credit to finance female entrepreneurship and services exports, as well as the reduction of the financial costs of international payments, for example through the promotion of financial technologies, in collaboration with other international organizations, such as the World Bank and the International Monetary Fund; and

  • supporting the post-pandemic recovery in the tourism and travel-related sectors, which are not only an important source of women’s employment at all skill levels but also offer concrete opportunities for women business-owners to trade internationally, including the promotion of women’s entrepreneurship in sustainable and green tourism, a new trend offering further export opportunities in areas not yet touched by tourism development.

“Gender lens”

The Working Group can promote the application of a “gender lens” in WTO negotiations on services, including on environmental services, in Joint Statement Initiative (JSI) negotiations on e-commerce and investment facilitation, as well as in regional trade negotiations. This can be achieved through the adoption of provisions prohibiting gender-based discrimination and fostering women’s participation and empowerment in cross-border trade in services and investment.

Trade liberalization

The liberalization of trade and investment in services should be encouraged. It has the potential to increase the share of participation in international trade of women-led businesses in the services sector. In this sense, for example, reducing barriers in trade in environmental services can contribute to a green-recovery, as well as to reducing the obstacles to women’s participation in these types of services.

Exchange of information

The exchange of best practices and information on removing trade-related barriers and increasing the participation of women in trade in services can help to showcase success stories. Workshops and webinars oriented to women entrepreneurs, as well as relevant public agencies can provide a platform for sharing national or regional best-practice approaches. A public commitment to strengthen and make visible the participation of women in the services sector and the role of women-owned MSMEs, can bring lasting benefits through increasing opportunities for women’s participation in the services sector, enhancing employment and incomes.

Ricardo Ashimi