The effects of the Mercosur-European Union Association Agreement on Female Entrepreneurs in Brazil’s Service Sector

Gender neutrality in international trade relations has been increasingly questioned for years. In order to contribute to a better understanding of this phenomenon, this research had the main objective of understanding the possible effects of the Association Agreement Between Mercosul and the European Union on female Brazilian entrepreneurs in the service sector. The methodology used was based on the UNCTAD Gender Trade Toolbox and relied on the qualitative content analysis of recent literature about the effects of international trade on female workers and entrepreneurs. The effects were divided into positive (more business and job opportunities, better life quality and working conditions, and freedom to make choices) and negative. The results showed that female entrepreneurs would be more positively affected by trade, once they could be integrated into global value chains (GVC), supply services to export-oriented firms and the manufacturing sector and have access to the international market. Nevertheless, cheaper products and services importation may increase the competitiveness of their companies and pull them out of the market, mostly because they are mainly concentrated in small businesses with lower technological capabilities. Women entrepreneurs also face barriers due to their gender roles, such as the responsibilities of unpaid work and gender discrimination. To enable Brazilian female entrepreneurs to maximize their benefits from trade liberalization, enhance their well-being, and seize business opportunities, public policies should be designed to provide women with access to credit, as well as training and education to navigate technological changes. Additionally, redistributive and social provisioning measures should be implemented to promote greater gender equality.