ENGENDERING INTERNATIONAL
TRADE COMMITMENTS
WTO, NEPAD AND ACP/EU
TRADE AGREEMENTS COMPARED
By
Dr. (Ms) Keziah Awosika
Women, Law and Development
Centre Nigeria (WLDCN)
8A, Olukole Close
Surulere, Lagos.
Paper presented at the
“Trade and Sustainable Development:
Media Capacity Building Workshop”
Organized by DEVNET Development Information Network,
NCWS House (3rd floor) PC 14,
Ahmed Onibudo Street, Victoria Island
Friday 14th May, 2004.
INTRODUCTION
At this point in economic history, discussions on international trade and sustainable
development cannot be complete without an understanding of the main issues
involved in the ongoing globalization, especially as they affect the poorer nations of
which Nigeria is on the lowest rung; so also the effect on women who UN statistics
have shown constitute 70% of the world’s poor.
The gender effects of globalization are complex and mixed. From often quoted UN
and World Bank indicators “Feminization of poverty” has increased especially
among countries whose population are below the poverty line.
It is noted that, overall, globalization has done little to minimize gender inequalities.
While in some circumstances it may have decreased them (particularly in countries
where it has led to an unprecedented employment of female labour) in other cases, it
has intensified them. (Rubens Ricupero, Secretary General, UNCTAD, 1999) In the
case of Nigeria, the socio-economic transformation of the past three decades have
resulted in increases in poverty level and crimes such as 419, drug trafficking, human
trafficking, lower educational and ethical standards as well as lower standard of
living. These are despite the huge earnings from petroleum. The GDP as well as per
capital remains below US$400.
The gender impact of trade expansion and commitments have been mostly directly
observed in the manufacturing sector- the increased orientation of manufacturing
production towards exports in the developing countries have led to significant
increases in the share of women workers employed in manufacturing sector labour
force compared to traditional agriculture. Indeed, in many countries industrialization
has been as much female as export–led and in some situations this has represented a
huge leap forward in the participation of women in the money economy.
It is therefore important that trade policies, commitments and globalization process
integrate gender impacts and human rights factor if development is to be sustainable.
Global trade and business arrangements must be more supportive of the greater
participation of women in development both as agents and beneficiaries. As will be
discussed in this paper the main message is that the world trade and businesses must
operate in ways that promote the realization of human rights after all, women’s rights
are human rights.
At the heart of the disclosure is the issue of who gains or loose from trade under the
current model of globalisation. The reality is that the gainers are the multi-national
corporations and international investors whose legal rights and operations have
depended and extended in the past two decades through the world trade
organization’s regional and bilateral trade agreements entered into by nations to
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promote employment and development in their various countries. The losers on the
other hand are the developing countries and especially the vulnerable social groups
mostly women who desperately need employment as a means of escaping poverty
and inequality.
CURRENT GLOBALISATION MODEL
Simply stated, globalisation is a process whereby owners of capital are enabled to
move their capital (whether in the form of money or goods) around the world more
easily and faster than ever before. This process has been facilitated by the spread of
new information and communication technologies and the removal of state controls
on trade and investments (liberalization deregulation/removal of subsidies etc).
According to UNIFEM (Progress Of The Worlds Women 2000) and OXFAM
Studies (Trading Away our Rights- Women working in Global Supply chains, 2004)
there is no doubt that the process of globalisation has given greater impetus to
women participation in the market economy. It has increased the number of women
working in the modern sector of the economy and at the same time globalisation has
widened inequality within and among the countries.
It has led to greater instability in the socio-economic conditions of these countries,
which again tends to widen the gap between gainers and losers under the existing
WTO’s trading agreements. The gainers being those who are well placed in terms of
ownership of capital and in terms of knowledge and skills to operate the new
information technologies to their advantage.
On all fronts women are the greatest losers in the sense that they have less privilege
in terms of access to capital, knowledge, education and the new information
technologies.
Oxfam as part of its campaign to make trade fairer did a study on about twelve
countries (low and high income) and summarized the process of globalisation thus:
“Under globalisation, retail and brand companies have positioned themselves
as powerful gatekeepers between the world consumers and producers. The
global supply chain stretch from the supermarkets shelves and clothes rails in
the world’s major shopping centers to the fruits and vegetable farms of Latin
America, Africa and the garment factories of South Asia and China. Wal-Mart
the world biggest retailer has driven this model, buying products from 65,000
suppliers world wide and selling to over 138 million consumers every week
through its 1,300 stores in ten countries. Globalisation has hugely strengthened
the negotiating hands of retailers and brand companies (e.g. Marks & Spencer,
Nike, Sears Reebok, Nestle, Johnson and Johnson’s, Macdonald’s, Sainsbury,
Unilever, Tesco and others)
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These companies have tremendous power in negotiation with producers and they use
that power (often supported by new technologies, trade liberalization and capital
mobility which have opened up a number of countries in Africa, Asia, Latin America
and Eastern Europe from which they source for their products) to push the costs and
risks of business down the supply chain (Oxfam)
GLOBALISATION AND INTERNATIONAL TRADE AGREEMENTS
IMPLICATIONS
As noted above with globalisation the modern and educated women have access to
higher employment opportunities, this to some extent reduces gender inequality. And
for women generally, the lower costs and availability of consumer goods tend to
make household incomes go further and life easier. However, the lower income and
uneducated women, working in factories and at the lower end of the supply chain,
and the self employed women are adversely affected by the increasing pressure of
competition under regimented living conditions and lowering of labour standards
compared with what obtains in the developed economies. This position is further
encouraged by developing countries’ governments efforts to encourage foreign
investment through flexible labour laws and trade agreements. Several studies have
highlighted the unwholesome labour practices of trans-national corporations
operating in free trade zones or export free areas of the world.
Many women earn very little for long hours and in conditions that makes it
impossible for them to look after their families. Any form of protest and absenteeism
may result in loss of jobs and consequent reversal to abject poverty. According to the
director of Oxfam,
“While we welcome the fact that millions of women are getting a wage, wage
alone does not free them from poverty, instead they are being burnt out by
working harder, faster and over longer hours and with few health, maternity
and union rights. This is a poor strategy for improving women’s lives”
Indeed Women NGOs the world over have taken the initiative to organize campaigns
advocating for corporate codes of conduct, fair labour conditions, social accounting
and intergovernmental initiatives to create standards and effective strategies to
monitor and implement them. A much quoted example is the initiative of the women
in Nicaragua (Latin America). They demanded for a code of ethics for employers
operating in the free trade zone of the country. Their slogan was “employment Yes,
but with Dignity”
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Amongst other demands were the demand for the elimination of discrimination on
the basis of sex, race, religion, disability or political orientation as well as guarantee
of job security and safe guard of pregnant or post natal women from dismissal. There
were also demands to ensure that workplace guarantee health, hygiene and well
being, allowing workers to organize and negotiate collective agreements, respect
working hours and disallow child labour (employment of workers under the age 14).
For women small-scale producers (agro-allied industries, cottage industries etc)
globalisation has meant loss of market for their goods, as they are not able to
compete with the multi-national corporations in terms of cost and quality. Apart from
this, they have restricted access to international markets due to their lack of
knowledge and access to modern information technology. The goods they have been
producing by traditional knowledge are being patented by transnational corporations
and sold back to them in slightly different versions.
It is noteworthy that some of these clamours have yielded results because some
multi-nationals have voluntarily instituted codes of conduct to address these
demands in their respective organizations. But there is no means of ensuring
independent monitoring or enforcing their implementation. These are some of the
issues governments of developing countries tend to neglect when negotiating
agreements with foreign investors. Emphasis is usually on promoting employment
and export growth while the socio-political problems arising form these transactions
are ignored.
While developing countries are clamouring for more favourable trade agreements on
all fronts, international network of women NGOs encouraged by UNIFEM have
become increasingly vocal in drawing national governments’ attention to the adverse
impact of these agreements on women and other vulnerable groups – a development
that augurs well for the future.
In what follows, the WTO, NEPAD and ACP/EU agreements are examined and
analyzed in terms of their varying impacts on gender equity and human rights as well
as the role of government and civil society organisations in developing countries
relation to these trade terms.
WTO/ACP-EU/NEPAD
WORLD TRADE ORGANIZATION (WTO)
WTO agreements seek to liberalize world trade, not only through reduction of import
quotas and tariffs but also in identifying and seeking to reduce a wide range of
barriers to trade including regulations on foreign investment, environment protection,
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health and safety standards, laws on ownership of natural resources and of systems
of knowledge and new technology. Others are regulations on procurement of
government contracts and the design and operation of social security systems.
The governments of developing countries and others through accede to these
arrangements through the following trade terms:
1. Trade Related Intellectual Property Rights (TRIPS) Agreement:
Deals with infringement of patents, trademarks and copyrights.
2. Trade Related Investment Measures (TRIMS).
This agreement advocates liberalisation of investments by according equal
treatment to local and foreign investors. As indicated earlier, this agreement
tends to limit any effort of the government of developing countries to promote
their small-scale and cottage industries. It places the foreign investor who has
access to foreign exchange and superior technology at an advantage. Women
tend to concentrate in this sector both for industries as well as agriculture.
3. General Agreement On Trade Services (GATS)
GATS provides for a level playing field in the service provision sector among
foreign and local companies. In addition to information and communication
services, GATS encompasses medical/healthcare education, human services
and public services. It is clear that many areas of service in developing
countries rely on women labour. Yet large-scale employment of women
usually at the lowest rung often has adverse implications on health care
standards, job security and conditions. Although it may to some extent lower
costs and access to services as witnessed by the explosion in
telecommunication services in Nigeria in recent years.
Another issue in the GATS agreement is centered on the rights of migrant
workers moving from the South to the North. It is noted that developed
countries have not been willing to discuss this issue in all their rounds of
negotiation.
4. Agreement On Agriculture (AoA)
Liberalisation allows the inflow of cheap and heavily subsidized products
from the developed countries of the North. This makes it difficult for most
African women who traditionally produce and trade in food, livestock and
fresh vegetables that in effect compete with frozen food and vegetables. The
impact of this agreement on food security for many developing countries and
most especially the vulnerable groups must be addressed in the process of
implementing trade liberalization.
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The central issue in WTO agreements/arrangements is the fairness or otherwise of
the terms and practice. Some critics have pointed out that the WTO Trade Policy
Enforcement Mechanism is widely recognized as being tilted in favour of rich
countries that can afford teams of expensive lawyers well versed in International
Trade Law” (UNIFEM 2000) They are therefore in a better position to negotiate
agreements to their own advantage.
Indeed the NGO Working Group on Trade and the African Caucus of NGOs
Statement on Trade (FFD Prepcom, Feb. 2001) bluntly stated that
“the WTO currently plays by the rules of the jungle, the rules of survival of
the fittest where the strong dominate, kill, or even eat up the weak.
We urge the world community to press WTO to end urgently its double
standards. Developing countries would not need preferential treatment if trade
were fair, we demand fair trade”.
It is expected that there would be a slowdown of operation of WTO, to allow for a
period of review, “repair and reform”.
It is also necessary to examine other trade arrangements that have impacted on
African countries particularly women.
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THE AFRICAN CARIBBEAN AND PACIFIC/EUROPEAN UNION (ACPEU)
These are multilateral/bilateral trade agreements between disadvantaged
African Caribbean and Pacific (ACP) countries on the one hand and the
advantaged European Countries, known as Lome 1-4 Agreements (1975 2000).
There is also the “Cotonou Agreement” a new agreement signed between 77
ACP countries and the European Union. They are essentially similar to the
WTO Agreements in their impact on the developing countries except that they
tend to concentrate on manufactured goods.
Many ACP countries have become dumping grounds for all types of
manufactured goods and used items. Import dependence on goods has
increased while domestic productive capacity is undermined. In practice the
agreements apart from increasing the productive capacity of the EU countries
also reduced unemployment in their countries. Indeed in their submission to
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the UN FFD prep-com 2001, African Caucus of NGOs noted that developing
countries are called protectionist when they try to shield their small textile
industries from dumped used clothing” – a phenomenon which has become
fairly commonplace in most Nigerian cities in recent years.
III
AFRICAN GROWTH OPPORTUNITY ACT (AGOA)
This is another type of bilateral trade agreements, which opens up the USA
textile market for only a few countries and with fixed and stringently
monitored quotas. It is collaboration between the America Commerce
industries and African countries. AGOA gives small-scale industries the
opportunity to export their goods to America markets. South Africa and Ghana
are already trading under AGOA. It is expected to facilitate new investment in
the continent, including cross border investment, creation of new jobs and the
building of the much-needed infrastructure.
“AGOA is not a panacea, but a catalyst to transform the economies of
Africa … by working for transparency in business and government,
developing opportunities for and encouraging African women to enter
the business world and helping to fight the AIDS epidemic that has
disrupted economic progress in so many countries” (CrossRoads – a US
Embassy monthly Newsletter – Jan 2004)
While the implementation of the AGOA evolves many NGOs have come up
with strong criticisms of the arrangement
“Maintaining unfairness and coming back with a few handout in the
name of preferential treatment is quite misleading and deplorable”
(NGO Statement on Trade 2001) “what we (Africans) need is a level
playing field without subsidies, Africans would not need AGOA if all
subsidies were done away with”.
It is important that stakeholders study the terms of these arrangements and
their impact on various groups especially the underprivileged before
embarking on firm commitments.
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IV
THE NEW PARTNERSHIP FOR AFRICAN DEVELOPMENT (NEPAD)
NEPAD is a partnership among African countries calling for the reversal of
the abnormal situation in which African economies are being increasingly
marginalized in the globalisation process. NEPAD calls for a change in the
relationship that supports the economies of African States. Africans are
appealing neither for further entrenchment of dependency through aid nor for
marginal concessions. It is envisaged as a long term vision of “an Africanowned and African-led development programme” (African Union, October
2001)
Therefore two of its long-term objectives are:
 To eradicate poverty in Africa and to place African countries both
individually and collectively on a path of sustainable growth and
development and thus halt the marginalisation of Africa in the
globalisation process.
 To promote the role of women in all activities.
Yet NEPAD has been criticized for its failure to critically analyse
globalisation and the root causes of Africa marginalisation in the global
economy before endorsing free trade, privatization and uncontrolled financial
liberalization.
NEPAD proposes to promote the role of women in all activities, mainly
through some poverty alleviation policies without addressing the fundamental
structural causes of women’s poverty and inequality. Indeed the African Peer
Review Mechanism (APRM) was set up to address the shortcomings in the
NEPAD document.
As in the case of WTO, ACP-EU and AGOA, it is important for Africa
countries to clearly understand the issues at stake and the likely impact on the
various sector of the economy. In its present form NEPAD is likely to
perpetuate the economic and social exclusion of poor women while further
entrenching patriarchal patterns in politics.
Generally, civil society groups especially women NGOs have increased their
advocacy for a slowdown of the process to enable for a period of review. The
fact that only few people have seen the NEPAD document and that people
affected by it are not even aware of the issues under it negates its claim as an
“African-owned and African-led” development programme.
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The way forward therefore for Africa economies is that stakeholders including
civil societies must be part of bi-lateral and multilateral trade agreements. It is
essential in this regard that the capacity of all stakeholders and civil societies
be enhanced to enable them participate effectively in the processes of these
trade commitments at local and international levels.
Analysis of the WTO/ACP-EU/NEPAD trade arrangements is also set out in
tabular form below.
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TRADE
AGREEMENTS
WTO
Trade Related
Investment
Measures
(TRIMS),
TRADE TERMS
Advocate for
liberalization of
investment which
accords equal
treatment to local and
foreign investors
IMPACT ON WOMEN/
CHILDREN
Foreign direct investment
is usually labour intensive
in export, manufacturing
and commercial
Agriculture.
Serious impact on women
they are concentrated in
small and medium
enterprises.
Adverse implications for
women’s access to land
and other productive
resources
GENERAL EFFECT
WAY FORWARD
Generally, trade
liberalization has adverse
impacts on Nigeria &
African communities.
Food security is an area
that is very sensitive in the
Africa region
Objectives of TRIMS
should be to promote
development, which
requires government
assistance to build
capacities of SME and
micro and small business
to produce goods and
services or to protect the
markets for the goods
which they produce.
Civil society must take steps
to understand the issues in
multi-lateral trade
agreements
in order to make meaningful
contributions to
government's negotiating
position.
Favours greater
employment of educated
women in the modern
sectors.
For the uneducated,
women on the other hand it
encourages adverse labour
conditions and increased
pressure due to
competition.
TRADE
AGREEMENTS
WTO
Trade Related Aspects
of Intellectual Property
Rights (TRIPS)
TRADE TERMS
Trips deals with
the problem of
counterfeiting or
copying –
infringement of
patents, trademarks
and copy rights.
TRIPS enable a
patent to be
obtained if the
patent seeker adds
anything however
small to existing
knowledge.
IMPACT ON WOMEN/
CHILDREN
The provisions enable
multinational corporations to
appropriate knowledge of
women and indigenous
healers and farmers in
developing countries without
adequate compensation.
No recognition for
traditional knowledge of
women and men in
agriculture, healing & the
preservation of nature.
Foreign direct investments is
usually female labour
intensive especially in
export, manufacturing and
commercial agriculture.
Women greatly affected
because they are mainly
involved in subsistence and
smallholder commercial
farms.
Code of Conduct of
multi-national
corporations in the area of
Labour Rights Practices
need to be monitored and
implemented
GENERAL EFFECT
WAY FORWARD
Denies farmers the right
to save seed from their
produce by making them
pay royalties for seed
saving.
Civil society must take
steps to understand the
issues in multi-lateral trade
agreements
in order to make
meaningful contributions
to government's
negotiating position.
TRIPS drive the whole
system of ownership and
entitlements towards
market based allocation.
It also increases the
scope for the operation
of already powerful
multi-nationals and
businesses against the
less competitive local
industries.
Advocates the protection
of traditional knowledge
and folklore
Code of Conduct of multinational corporations in
the area of Labour Rights
Practices need to be
monitored and
implemented
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TRADE
AGREEMENTS
General Agreement on
Trade in Services
(GATS),
TRADE TERMS
Provides for a level
playing field in
service provision
among big foreign
owned companies
and small locally
owned companies.
IMPACT ON WOMEN/
CHILDREN
Opening up women service
providers to unfair
competition by foreign service
providers even in sectors such
as human services, education
and
medical/ health information
and communication sectors.
WAY FORWARD
Civil society must take steps to understand the
issues in multi-lateral trade agreements
in order to make meaningful contributions to
government's negotiating position.
Code of Conduct of multi-national corporations in
the area of Labour Rights Practices need to be
monitored and implemented
Although more jobs are
created but only to the skilled
and educated who are able to
take advantage of the
technological requirements
that accompanies
globalisation
TRADE
AGREEMENTS
TRADE TERMS
Agreement on
Agriculture (AoA).
Has various
provisions, which
have the effect of
threatening food
security in developing
nations.
IMPACT ON
WOMEN/
CHILDREN
Women
(traditionally
producer of food &
vegetables) unable
to compete with
inflows of cheap
heavily subsidized
western products
WAY FORWARD
Need to recognize that indigenous knowledge and cultural
heritage have collectively evolved through generations
and no single person can claim invention or discovery of
medicinal plants or seeds or other living things.
A review of AoA with emphasis on eliminating export
subsides & restraints by the EU & USA.
Transfer of technology should be promoted and giving
priority during negotiation.
Civil society must take steps to understand the issues in
multi-lateral trade agreements
in order to make meaningful contributions to government's
negotiating position.
Code of Conduct of multi-national corporations in the area
of Labour Rights Practices need to be monitored and
implemented
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ACP-EU
Trade agreement between disadvantaged African, Caribbean and Pacific (ACP) countries on the one hand and the advantaged
European countries
TRADE
AGREEMENTS
TRADE TERMS
Lome 1-4 Agreements
1975 - 2000.
Reviewed every 5
years to the detriment
of developing
countries.
Cotonou Agreement June
23, 2003 of 77 ACP and
European Union (EU)
NEPAD
Long term objectives:
Eradicate Poverty
Promote the role of
women in all activities
NEPAD’s goal:
"...enhance Africa's
rapid integration into the
world's economy
IMPACT ON
WOMEN/
CHILDREN
Effect harsher on
vulnerable group
made up mostly of
women & children
Impact on push
towards
industrialization and
development.
Undermines
industrial, (Textile,
Food and Beverage)
Distributive and
manufacturing sectors
of the economy
GENERAL EFFECT
WAY FORWARD
WTO and ACP-EU
agreement" serves to
make Nigeria: a dumping
ground, for all types of
goods.
ACP-EU pro poor measures
(articles 25 & 26) should be
used by NGOS, Civil
Societies & Trade Unions to
assess the performance of
governments in improving
the social economic
condition and welfare of the
Vulnerable groups in the
society.
Factories & industries are
being closed, as they
cannot compete.
Increase in rate of
unemployment.
Increased dependence on
imported goods,
productive capacity
undermined. Western
Countries: increase
productive capacity,
reduce unemployment in
their countries
Stakeholders must ensure
that bilateral or multi-lateral
agreements are not signed in
future without their input.
IMPACT ON WOMEN/
CHILDREN
A major gender gap in
NEPAD, as it does not give
enough attention to genderrelated issues.
GENERAL EFFECT
WAY FORWARD
May perpetuate the economic and
social exclusion of poor women, apart
from entrenching patriarchal patterns in
politics
Program of Action: To establish
a gender task team to ensure
that specific issues faced by
poor women are addressed in
the poverty reduction strategy.
Instead of mainstreaming
gender considerations and
women's needs the emphasis
in the NEPAD action
program is on offering
women a handful of incomegenerating measures.
NEPAD fails to critically analyze
globalization and the root causes of
Africa's marginalization in the global
economy and endorses free trade and
privatization without recognizing issues
such as the power of transnational
corporations (TNCs) and the dangers of
uncontrolled financial liberalization. It
does not call for cancellation of
sometimes decades-old debts, which
place a heavy burden on women in
particular, and only narrowly equating
poverty as lack of access to resources,
without questioning the structures of
subordination that make women poor in
the first place.
NEPAD’s plan does not
attack the fundamental
structural causes of women's
poverty and inequality, such
as skewed macroeconomic
policies
NEPAD bypasses the impact
of globalization on women's
employment. Even where
women are a big part of the
labor force, they are found
mainly in low-wage jobs with
low standards of health and
safety.
African Leadership Forum was
mandated to
liase with relevant development
agencies, in particular the
United Nations Development
Fund for Women to undertake a
Gender Analysis of the NEPAD
document
(Regional
Conference on African Women
& NEPAD, Feb.2002 Nigeria)
Use a human rights framework
to formulate policies to ensure
economic and social justice,
including poverty reduction and
gender equity.
Prioritize the rights of the
disadvantaged over the interests
of foreign capital
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