The UNCTAD secretariat plans to offer in the fall of 2004 a unique mechanism called Sectoral Trade Reviews to help developing countries to gain from emerging dynamic and new trade sectors.

UNCTAD is developing the mechanisms and is also helping to identify strategies and specific policies to consolidate and expand the gains. The Sectoral Trade Reviews will be discussed on 16 June 2004 at the session on policy options to support developing countries' competitiveness in the most dynamic sectors of international trade. (Please see UNCTAD XI DITC background note # 7)

The Sectoral Trade Reviews treat dynamic and new sectors case-by-case. The goal is to help policy makers and other stakeholders to identify opportunities in particular sectors and articulate policy options tailored to each country&apo;s specific needs. They could also serve as a forum for policy dialogue by bringing together principal stakeholders, including developing countries, their development partners, relevant international organizations, transnational companies, developing country firms, and civil society.

These issues will be discussed at a session entitled, "Policy Options and Strategies to Support Developing Countries' Competitiveness in the Most Dynamic Sectors of International Trade", on 16 June 2004 at UNCTAD XI in Sao Paulo.

The Work Programme of the Doha Round of multilateral trade negotiations provides an opportunity to address key issues relevant for developing countries' participation in dynamic and new sectors. They include effectively dealing with tariff barriers facing developing countries; meaningful reform in agriculture; liberalization of services sectors; and adequate special and differential treatment.

Key issues for a successful strategy

A successful strategy should provide targeted support to help developing country firms to integrate the technologies needed to specialize in higher-value-added goods and services. Key challenges include tapping the potential of transnational companies to help developing countries to move into increasingly high-value-added exports. There is also need to attract FDI designed to "race to the top".

Increasing gains from dynamic and new sectors involves two strategic issues: increasing domestic supply capacity and enhancing international competitiveness. An appropriate policy mix should include:

• A stable and supportive macroeconomic, regulatory and financial environment with the necessary institutional structures in place
  
  
• Strategic use of complementary policies (e.g. trade, industrial, financial and technology policies) to address structural deficiencies, technology and infrastructural gaps, develop productive capacities and promote fair competition
  
  
• Strengthening institutional capabilities for policy design and implementation, as well as for related trade negotiations at the international level
  
  
• Effective government-business cooperation, including compatibility between national policy objectives and core business interests
  
  
• Targeted use of social policies (e.g. education, health and employment policies) to develop and upgrade human resources, with emphasis on a broad-based distribution of gains
  
  
• Appropriate environmental and resource management policies to ensure long term sustainable development.

The Sectoral Trade Review dialogues will focus on

• Identification of specific dynamic and new sectors and products of export interest to developing countries, and of their actual and potential markets;
  
  
• Policy options and practical actions at the national, regional and international levels for translating opportunities into actual export activities and higher domestic value added;
  
  
• Sharing of experiences and lessons learnt;
  
  
• Market access and entry issues and the role of the multilateral trading system and regional trade arrangements;
  
  
• Promotion of public/private/non-governmental partnerships and networking;
  
  
• Development cooperation, including support for capacity-building;
  
  
• Distribution of development gains, taking into account poverty reduction and gender equality aspects.