DDG Ellard calls for more inclusive trade policies at WTO Chairs Programme event in Peru

Ladies and gentlemen,

It is such a pleasure to be part of this gathering in Lima, a city close to my heart, renowned for its vibrant culture, storied past, and culinary delights.

I find it fitting that we convene here to delve into the imperative of fostering inclusivity in trade, with a special focus on advancing women's economic empowerment. Peru, a country known for its resilient entrepreneurial spirit, boasts a remarkable statistic: according to some studies, over a third of its women are entrepreneurs.

I would like to first of all thank Professor Saco for bringing all of us together. The Chairs Program is a key part of the WTO's commitment to capacity building for its Members.  I am glad that we have Chairs from other countries of the region here today, providing an excellent opportunity for knowledge-sharing on today's topics.

I am delighted to open this event with some remarks on how the power of international trade can be harnessed to achieve a more sustainable and inclusive global economy, and how the World Trade Organization can help make it happen.

Allow me to begin with the premise that as the WTO is marking its 30th anniversary, our approach to international trade has transcended simply addressing economic efficiency, market access, and tariff reduction. Rather, we aspire for trade to serve as a catalyst for positive change, leveraging its influence to support those who have historically not fully benefitted from the forces of globalization — developing and least developed countries, small and medium-size enterprises, as well as women, youth, and indigenous communities. This commitment aligns with our overarching goals of elevating living standards, promoting full employment, and fostering sustainable development, as outlined in the preamble to the WTO Marrakesh Agreement, our founding document.

Making trade more inclusive by supporting the integration of these groups in international trade is at the forefront of our work at the World Trade Organization. That's why we have been promoting re-globalization, to extend the benefits of international trade to more individuals and regions, ensuring that no one is left behind in the march towards economic prosperity and opportunity.

Re-globalization is well underway, with companies expanding value chain investments in countries such as Vietnam, Morocco, and Costa Rica to maximize cost efficiencies, mitigate risks, and enhance market proximity. Now, the task is to extend this process to enable more countries, including in Latin America, to benefit from these opportunities. The WTO’s main role in supporting re-globalization is in underpinning open and predictable international markets and reducing trade costs through our rules, such as the Trade Facilitation Agreement.

Let me elaborate on some of our work.

First, our work on development embodies the WTO's commitment to ensuring that the benefits of global trade are shared equitably among all nations.

At our most recent Ministerial Conference, MC13, held in February in Abu Dhabi, our Ministers made substantial progress in meeting the needs of developing and least-developed Members. Developing countries widely regard MC13 as a success because WTO Members secured several incremental yet significant advancements that had eluded them for many years.

• First, Ministers agreed by consensus to offer graduating Least Developed Countries (LDCs) a seamless and sustainable transition period prior to the cessation of duty-free quota-free market access following their graduation. At MC13, graduating LDCs were granted a three-year transition period to avail themselves of LDC-specific technical assistance and to assimilate WTO rules into their frameworks.
• Furthermore, MC13 marked a watershed moment as Ministers adopted the first decision in over two decades of negotiations concerning special and differential treatment for developing countries. Acknowledging the hurdles many developing nations encounter in complying with standards and technical regulations, Members committed to delivering timely assistance to these countries during the implementation of such measures, thereby affording them the opportunity to actively shape these regulations.

Beyond MC13, as part of its regular activities, the WTO has been instrumental in bolstering trade capacity in developing countries. Through strategic partnerships with various institutions, the WTO is actively engaged in assisting Members in meeting international standards, enhancing trade facilitation measures, and fortifying trade institutions.

The WTO's Aid for Trade Initiative has been a catalyst for unlocking a staggering USD 687 billion in investments, empowering developing countries and LDCs to more fully participate in the global trade arena. I invite government representatives to participate in the upcoming 9th Global Review of Aid for Trade scheduled for late June, where we can collectively chart the course for inclusive and sustainable trade development.

WTO Members have also embarked on initiatives aimed at promoting women's economic empowerment and inclusion in international trade.

Neither the global economy nor trade is gender-neutral. While women represent around 40% of the global workforce worldwide, their earnings are on average between 10 and 30% lower than those of men. Women also face higher obstacles than men in accessing the global market and the economic opportunities created by trade. As a result, globally, there are fewer female entrepreneurs than male ones (including Latin America and the Caribbean where 43% of female entrepreneurs trade internationally).

At the same time, international trade can be extremely beneficial for women. Data shows that firms that export employ more women, pay them better, and offer better working conditions.  In many cases, trade lifts women out of the far less advantageous informal workforce. This is especially important in Latin America and the Caribbean, where more than half of the economy is informal, which affects some 140 million people.

Given the structural inequalities in global economy and commerce, rules governing international trade should be designed to ensure sustainable and inclusive growth, including by fostering the full and equal participation and leadership of women in the economy. This objective is at the heart of our work at the WTO, in line with the mandate set in the Marrakesh Agreement.

Let me outline some initiatives undertaken at the WTO to help address gender issues in trade policies.

• We had several positive developments in the area of trade and gender at our latest Ministerial Conference, MC13, in late February in Abu Dhabi.
  • First, at the multilateral level, our WTO Ministers adopted by consensus a Declaration that includes a paragraph recognizing that women's participation in trade contributes to economic growth and sustainable development. It also recognises the work of the WTO on the topic, outlining capacity building and sharing experience as essential initiatives. This Declaration is an important milestone in our work on gender equality.
  • Second, at MC13, new disciplines on good regulatory practices for services trade entered into force.  This agreement marks the first time that a WTO-negotiated text contains a provision on non‑discrimination between men and women in authorization processes, thereby improving prospects of women's participation in services trade.
  • Third, a large group of WTO Members [Informal WG on MSMEs and Informal WG on Trade and Gender] launched the Compendium of Financial Inclusion Initiatives for Women-led Small Businesses. It is an overview of measures adopted by WTO Members to facilitate access to capital for women, aimed to assist policymakers in designing gender-responsive trade policies to enhance women entrepreneurs' financial inclusion. This initiative is meant to help close the whopping $300 billion financing gap that exists for women-owned small businesses globally.
  • Fourth, together with the International Trade Centre, we launched a $50 million global fund [Women Exporters in the Digital Economy (WEIDE)] for women exporters in the digital economy. Digitalisation presents us with unprecedented opportunities to empower women entrepreneurs, as exemplified by the ConnectAmericas platform, which helped the number of female-owned businesses to surge since its creation in 2014. The Fund, which has received its first $ 5 million from the UAE, will help women-led businesses in developing economies and LDCs adopt digital technologies and expand the online presence of their enterprises.
• Going beyond MC13, as part of the WTO's regular activities, the Informal Working Group on Trade and Gender brings together 130 WTO Members, including many Latin American countries. These Members seek to increase women's participation in global trade through sharing best practices, applying a "gender lens" to the work of the WTO, and discussing how women may benefit from WTO initiatives, such as Aid for Trade.
• I should also mention our WTO Gender Research Hub, launched in 2021 to improve the understanding of the impact of trade on women and gender equality. The Hub serves as a knowledge-gathering platform where the latest research is shared. The Hub includes trade and gender researchers and experts from the WTO Secretariat, seven international organisations and regional organisations, four members of the WTO's Chairs Programme [Mexico, Chile, Barbados, and South Africa], and eight universities.

I would like to thank Professors Bahri and López for their contributions to the work of the Hub and academic scholarship on trade in gender that helps our WTO Members to design better trade policies that promote women's inclusion.

This work and these accomplishments at the WTO demonstrate a growing recognition that to achieve prosperous economies and well-functioning societies, we need to think not only about economic growth but also who benefits from this growth and how.

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To conclude, let me reiterate that in today's ever-evolving landscape, trade remains an indispensable tool for building a more secure, inclusive, and sustainable world. Achieving prosperous economies and well-functioning societies requires a holistic approach that prioritizes inclusivity, equality, and sustainability.

Events like today's are vital platforms for knowledge-sharing and fostering dialogue among scholars, policymakers, and practitioners. By bringing together diverse perspectives, Chairs' events facilitate the generation of innovative ideas and the formulation of evidence-based policies.  Thanks to our Chairs' research, policymakers can gain access to the latest data and best practices, empowering them to make informed decisions and design more effective policies to address complex challenges.

So once again, thank you all for attending and bringing your valuable ideas to the table.

I am confident that by continuing to collaborate and innovate, we can build a future where the benefits of global trade are shared equitably by all.

Thank you, and I look forward to the discussions.