WILPF- Women's International League for Peace and Freedom

What are export processing zones?

There are many definitions of export processing zones. The International Labor Organization (ILO) has defined EPZs as "industrial zones with special incentives set up to attract foreign investors, in which imported materials undergo some degree of processing before being re-exported".

WEPZA (World Economic Processing Zones Association) has another definition. "Toll free zone for export production"

Export processing zones can be described as delineated industrial estate, which constitutes a free trade enclave that is exempt from the normal customs and trade regulations of the country. In this zone, foreign manufacturing firms that produce mainly for export, benefit from certain tax and financial incentives. The concept is known by many different names including free trade zones, special economic zones, bonded warehouses, free ports, zona francas and Maquiladoras. Their physical form now includes not only enclave-type zones but also single-industry zones; single-commodity zones and single-factory or single-company zones. Mauritius and Hainan (China) allow factories anywhere on the respective island to apply for zone status.

The difference in definition matters when we try to count these zones. According to the definition made by ILO there are 5174 zones in 116 countries. With the WEPZA-definition there are 1300 zones in 128 countries. For example, WEPZA doesn't count in the EU since there is no difference in tolls whether you are inside or outside the zone. Despite the difference there are some visible trends; the number of economic free zones are increasing rapidly, the number of workers are also increasing and most of them are women.

Exported industrialization is very female-intensive. Women make up for the majority of all workers, up to 90% in some zones. Gender-related barriers have been alleged in the operation of some EPZs in form of discrimination in hiring, wages, benefits and career development, as well as relating to a lack of accommodation of women workers needs in relation to issues such as working hours, pregnancy, maternity leave or childcare. Typically, women's wages are 20-50% lower than those of males working in the same zones and promotion prospects are low for women, who are predominantly employed as semi-skilled or unskilled workers.

Zones are purpose-built and may offer a modern factory but saftey and health remains a major concern. There are trade union reports of export garment factories without needle gards on sewingmachines and workstations without proper seating. The demands of extremely tight delivery schedules and low prices forces producers to underpay workers and inflict on them crushingly long working hours. back to top of page

Years	1975	1986	1997	2002	2006
Number of countries with EPZs	25	47	93	116	130
Number of EPZs or similar kind of zones	79	176	845	3 000	3,500
Employment (millions)	n.a.	n.a.	22.5	43	66

Geographical area	Employment	Number of zones
Asia	55 741147	900+
- of which China	(40 000 000)
Central America and Mexico	5 252 216	155
Middle East	1 043 597	50
North Africa	643 152	65
Sub-Saharan Africa	860 474	90+
United States	340 000	713
South America	459 825	43
Transition economies	1 400 379	400
Caribbean	546 513	250
Indian Ocean	182 712	1
Europe	364 818	50
Pacific	145 930	14
Total (estimated)	66 980 763	3 500+

Source: ILO database on export processing zones, 2007

Why are export processing zones promoted and accepted by some countries?

Countries depend on investment, new technology and foreign currency. EPZs are seen as a way of strengthening export and commerce. They are also seen as a way of reducing unemployment. In many poor countries, a low paid job may be better than no job at all. For many countries export through EPZ counts for a larger part of their export earnings. The poorer a country is, the better terms they have to offer to the companies. Countries that have a strong economic development can make higher demands on investors.

The costs and benefits of EPZs have to be carefully weighed-up. The government spends large amounts providing the infrastructure and running the zones, and cut taxes and duties for a period. In return it attracts investors, collects rents, generates foreign exchange and creates jobs. Investment has been narrowly concentrated in the electronics and clothing and footwear sectors and the investors usually locate only simple processing tasks in EPZs, therefore limiting the technology and skill transfer.

Most of the jobs are low-wage, low-skilled jobs and very little of the foreign money generated stays in the country. The foreign investment is not secure and could leave relatively easily.
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What human rights laws can be applied to protect workers in these zones?

There are no international laws that apply specifically to export processing zones. But many countries have signed and ratified UN Human Rights Treaties. In these treaties there are articles that directly relate to workers right and women's rights.

The International Covenant on Economic, Social and Cultural Rights
Article 7 of the International Covenant on Economic, Social and Cultural Rights states "The States Parties to the present Covenant recognize the right of everyone to the enjoyment of just and favorable conditions of work which ensure, in particular: (a) [...] (i) Fair wages and equal remuneration for work of equal value without distinction of any kind, in particular women being guaranteed conditions of work not inferior to those enjoyed by men, with equal pay for equal work. [...] (b) Safe and healthy working conditions; (c) Equal opportunity for everyone to be promoted in his employment to an appropriate higher level, subject to no considerations other than those of seniority and competence; (d) Rest, leisure and reasonable limitation of working hours and periodic holidays with pay, as well as remuneration for public holidays."

Article 8 states "The States Parties to the present Covenant undertake to ensure: (a) The right of everyone to form trade union of his choice [...]; (b) The right of trade unions to establish national federations or confederations and the right of the latter to form or join international trade-union organizations; [...]"

Article 10 states "The States Parties to the present Covenant recognize that: [...] 2. Special protection should be accorded to mothers during a reasonable period before and after childbirth. During such period working mothers should be accorded paid leave or leave with adequate social security benefits. [...]"

The International Covenant on Civil and Political Rights
Article 22 in the The International Covenant on Civil and Political Rights states "1. Everyone shall have the right to freedom of association with others, including the right to form and join trade unions for the protection of his interests. 2. No restrictions may be placed on the exercise of this right other than those which are prescribed by law and which are necessary in a democratic society in the interests of national security or public safety, public order, the protection of public health or morals or the protection of the rights and freedom of others. [...]"

The convention on the Elimination of all forms of discrimination against women (CEDAW)
CEDAW states in article 11 that "1. States Parties shall take all appropriate measures to eliminate discrimination against women in the field of employment in order to ensure, on a basis of equality of men and women, the same rights, in particular: [...] (b) the right to the same employment opportunities, including the application of the same criteria for selection in matters of employment. [...] (f) The right to protection of health and to safety in working conditions, including safeguarding of the function of reproduction. 2. In order to prevent discrimination against women on the grounds of marriage or maternity and to ensure their effective right to work, State Parties shall take appropriate measures: (a) To prohibit, subject to the imposition of sanctions, dismissal on the grounds of pregnancy or of maternity leave and discrimination in dismissals on the basis of marital status. [...]"

ILO Conventions
Most states are also members of ILO, and are required to follow the conventions adopted there. A number of conventions can be applied to export processing zones and their regulation. Convention C87, part 1, article 2 states that "Workers and employers, without distinctions whatsoever, shall have the right to establish and, subject only to the rules of the organization concerned, to join organizations of their own choosing without previous authorization." Article 3 states "1. Workers' and employers' organizations shall have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organize their administration and activities and to formulate their programs. 2. The public authorities shall refrain from any interference which would restrict this right or impede the lawful exercise thereof."

Article 4 states that "Workers' and employers' organizations shall not be liable to be dissolved or suspended by administrative authority" In Part 2, article 11 the convention makes clear that "Each Member of the International Labour Organization for which this Convention is in force undertakes to take all necessary and appropriate measures to ensure that workers and employers may exercise freely the right to organize"

Convention C183 deals with non-discrimination of women in article 8 "1. It shall be unlawful for an employer to terminate the employment of a woman during her pregnancy or absence on leave referred to in Articles 4 or 5 or during a period following her return to work to be prescribed by national laws or regulations, except on grounds unrelated to the pregnancy or birth of the child and its consequences or nursing. The burden of proving that the reasons for dismissal are unrelated to pregnancy or childbirth and its consequences or nursing shall rest on the employer. 2. A woman is guaranteed the right to return to the same position or an equivalent position paid at the same rate at the end of her maternity leave." back to top of page

Who regulates these zones?

The zones can be owned by private companies or by the government itself. The companies that operate in the zones are almost always privately owned. A lot of them are foreign owned but most of them are supplier to the global companies.

Sometimes there is a specific authority that controls and regulates these zones. These authorities are official organs of governments, and are set up to promote, attract and facilitate investment in the zones. Bangladesh Export Processing Zone Authority , Export Processing Zone Authority Kenya and Pakistan Export Processing Zone Authority are examples of official organs that are controlled by the governments.

There are laws in almost every country that regulates these zones and look after the workers rights, but the problem is that the government doesn't make sure that the laws are followed. In some zones trade unions are totally forbidden.. The zones are not often inspected by the government. To enter a zone without permissions is illegal. back to top of page

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