Fact Sheet: Nexus of Trade Capacity Building and Gender Equality

  • Date Posted: January 13, 2023
  • Organizations: U.S. Agency for International Development
  • Document Types: Primer or Brief
  • Donor Type: US Agency for International Development

The World Trade Organization and World Bank’s report, The Role of Trade in Promoting Gender Equality, highlights there is a positive correlation among GDP, trade, investment, gender equality, and women’s economic empowerment. Greater gender equality improves economic returns in trade and investment and vice versa. Therefore, the Biden Administration’s 2022 Trade Agenda promotes equitable, inclusive, and durable trade policy and expands stakeholder engagement. Furthermore, empirical evidence shows that increased productivity, better returns on investment, improved quality and greater quantity of products and services available, reduced prices, and increased income and opportunities resulting from increased trade and gender equality. For instance, businesses that engage in trade employ more women, and those women earn higher wages.

The United States is the largest single-country provider of trade capacity building (TCB) (see TCB Dashboard). Per the USAID Trade Capacity Building (TCB) Policy, USAID provides TCB to facilitate the flow of goods and services across borders; support participation in trade negotiations; help with the implementation of trade agreements; promote economic responsiveness to trade opportunities; and encourage private sector development and competitiveness, all with the goal of strengthening economic policies, removing trade barriers, and building well-functioning economic, political, and legal institutions. 

The Nexus of Trade Capacity Building and Gender Equality Fact Sheet details some of USAID’s current TCB activities.