Trade and gender provisions summary
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Canada has made gender equality and women’s economic empowerment a key priority in recent trade negotiations, including playing a leadership role to integrate gender-related provisions in the Canada-United States-Mexico Agreement (CUSMA). This includes labour obligations regarding the elimination of employment discrimination based on gender.
Trade liberalization can affect men and women in different ways. Canada worked with CUSMA partners to make sure this is addressed in the agreement, paying particular attention to the following issues:
- Gender-differentiated employment distribution between sectors means trade liberalization can affect men and women differently.
- Women-owned small and medium-sized businesses (SMEs) represent about 40% of SMEs globally, yet account for only 15% of exporting firms. As women-owned SMEs tend to be smaller, they also face higher export costs. The likelihood of exporting increases with business size, both in terms of number of employees and revenue size, as the firm has more resources to focus on international business activities.
- A 2015 World Bank survey found that most countries still maintain discriminatory laws, systemic business practices or a business culture that prevent women from fully participating in and reaping the benefits of international trade.Footnote 1
- Women-owned firms can face barriers with respect to access to capital and trade finance and can face exclusion from distribution networks.
Elements regarding trade and gender were included throughout the agreement, including in chapters on labour and investment.
Technical summary of negotiated outcomes: Gender-related provisions throughout CUSMA
CUSMA will contain gender-related provisions in the following chapters:
Labour:
- Includes, for the first time in a free trade agreement, gender-specific obligations are subject to dispute settlement.
- Contains new provisions which require each Party to implement policies that it considers appropriate that protect against gender-based discrimination in the workplace, specifically with regard to pregnancy, sexual orientation, sexual harassment, gender identity, and caregiving responsibilities.
- Encourages the adoption of programs and policies that address barriers to the full participation of women in the workforce, such as obligations to providejob-protected leave for childbirth/adoption and family care responsibilities, and protect against wage discrimination.
- Proposes cooperative activities that address gender-related issues in the field of labour, including gender equity.
- Recognizes the goal of eliminating discrimination in employment and occupation, and supports the goal of promoting equality of women in the workplace.
Investment:
- Includes a corporate social responsibility (CSR) provision that reaffirms the importance of encouraging businesses to respect CSR standards, such as the OECD Guidelines for Multinational Enterprises. This CSR provision provides an illustrative list of CSR areas, including gender equality and Indigenous and Aboriginal peoples’ rights.
Small and medium sized enterprises (SMES):
- Encourages parties to collaborate on activities that would enhance commercial opportunities for SMEs owned by under-represented groups, including women, and promote their participation in international trade.
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