The Skills for Trade and Economic Diversification (STED) programme provides guidance for the integration of skills development in sectoral policies. It is designed to support growth and decent employment creation in sectors that have the potential to increase exports and contribute to economic diversification. STED takes a forwardlooking perspective, anticipating a sector’s development and growth opportunities based on its global competitive position and market development. Together with an analysis of current skills supply and demand, this provides an outlook of existing and future skills shortages. Thus, STED supports the formation of skills for which there is demand in the labour market and helps to avoid skills mismatches.