WORLD TRADE  
ORGANIZATION  IP/C/W/412/Add.6 
18 December 2003 
 
 (03-6650) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
  
NEW ZEALAND 
  
Addendum
 
 
 
 The following communication, dated 25 November 2003, from the Delegation of 
New Zealand is being circulated pursuant to pa ragraph 1 of the Decision on Implementation of 
Article 66.2 of the TRIPS Agreement.  
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  1. This submission provides information on New Zeal and's activities relevant to Article 66.2 of 
the TRIPS Agreement concerning technology tran sfer to least developed countries (LDCs). 
2. Article 66.2 of the TRIPS Agreement provides that "developed country Members shall 
provide incentives to enterprises and institutions in their territories for the purpose of promoting and 
encouraging technology transfer to least developed c ountry Members in order to enable them to create 
a sound and viable technological base".  
3. Technology transfer is interpreted in this re port broadly to include training, education and 
"know-how".  Using the United Nati ons definition, we see four key modes of technology transfer:  
i) physical objects or equipment, ii) skills and human aspects of technology management and learning, 
iii) designs and blueprints which constitute th e document-embodied knowledge on information and 
technology, and iv) production arrangement li nkages within which technology is operated. 
I. OVERVIEW OF INCENTIVES, TYPES OF TECHNOLOGY AND THE MODES OF 
TECHNOLOGY TRANSFER 
4. New Zealand's efforts to encourage technology tr ansfer to LDCs occur through a variety of 
channels or modes:  through b ilateral and regional development assistance programmes, through 
encouraging trade in goods and services and th rough facilitating a strong intellectual property 
environment. 
5. The main vehicle for the channelling of our technology transfer to LDCs is through the New 
Zealand Agency for International Development (N ZAID).  NZAID views technology transfer as an 
implicit element in achieving its overall objective of re ducing poverty.  Due to New Zealand's history, IP/C/W/412/Add.6 
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 culture and geographical location, most of the re levant programmes implementing Article 66.2 focus 
upon LDCs in our neighbouring Asia-Pacific region. 
6. A large number of New Zealand's development assistance programmes to LDCs contain 
activities that include a significant technology tran sfer component.  Some of these are delivered via 
the provision of monetary incentives to New Zeala nd business enterprises, educational institutions and 
other organizations to foster links with LDCs. 
7. In addition to direct monetary incentives, New Zealand recognises that technology transfer, 
economic growth and poverty reduction are fostered in an efficient, open and market-based economy.  
With this in mind we put a strong focus on increasing trade with LDCs and facilitating their integration into the global trading system.  This  is done through assisting Pacific Island Countries to 
participate in regional and multilateral free trade ag reements and negotiations as this secures larger 
markets and provides a more stable framework for i nvestment to take place.  We also have a number 
of programmes that aim to facilitate trade in LDCs, including capacity building in areas such as 
customs and agriculture border control.  In line with the Millennium Development Goals, 
New Zealand also provided least developed countri es with tariff and duty-free market access from 
1 July 2001. 
8. The enabling environment (human capital, infr astructure, legal framework, macroeconomic 
conditions) of host countries is also a key elem ent in attracting FDI and absorbing technology 
transfer.  New Zealand therefore provides assistance to LDCs aimed at improving intellectual property systems, economic and fi nancial management, strengthening the rule of law and justice, 
increasing public sector effectiveness and strengthening civil society and support for human rights.  
The challenge is not only to attract as much tec hnology as possible in LDCs and more generally in 
developing countries, but also to make sure that su ch transfers best contribute to the objective of 
sustainable development.   
A. G
OVERNMENT AGENCY MAKING THE INCENTIVES AVAILABLE  
9. This report includes information on incentives for technology transfer provided by a number 
of New Zealand government agencies including the New Zealand Agency for International 
Development (NZAID), the Ministry of Foreign Affairs and Trade and the Ministry for Economic 
Development. 
B. ELIGIBLE ENTERPRISES AND INSTITUTIONS PROVIDING INCENTIVES  
10. The vast majority of New Zealand development assistance activities are implemented by 
organizations and individuals sel ected through a competitive tendering process, most of which are 
won by New Zealand agencies, consultancies or companies.  
C. APPROPRIATE TECHNOLOGY  
11. For sustainable development, it is critical that t echnology transfer be appropriate to the needs 
of the particular country.  In order to ensure this , New Zealand develops country strategies with all 
major partner countries to form the basis of deve lopment assistance.  The country strategies are 
informed by a country-specific analysis of povert y and the most effective contributions New Zealand 
can make to reduce it.  New Zealand is involved in working partnerships with a range of international 
and community partners to ensure harmonisation of resources and appropriately targeted assistance.  IP/C/W/412/Add.6 
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 D. THE FUNCTIONING IN PRACTICE OF INCENTIVES :  MONITORING AND EVALUATION  
12. Monitoring and measuring the effectiveness and results of development assistance are key 
concerns for the New Zealand aid programmes.  A range of mechanisms and experts are continually 
used to ensure effectiveness of  monetary incentives including an Audit Committee, High Level 
Advisory Groups and peer reviews. 
II. DETAILS OF INCENTIVES FOR TECHNOLOGY TRANSFER TO LDCS 
A. NZAID 
13. Tables One and Two in Annex 1 provide a summary of the programmes undertaken on a 
bilateral and regional basis through NZAID in 200 2 (calendar year), where the programme had a 
significant technology transfer component.  The total value of these programmes was $NZ29 million.1  
14. The criteria for technology transfer used to colla te this table is based on the OECD definition 
of technical cooperation.  The programmes are grouped together under summary headings of the 
general sector the programme fall under – based on our general view of the different modes of 
technology transfer, such as education, tr ade facilitation, construction/transport.   
15. In the section below, we provide further backgr ound on a selected number of the bilateral and 
regional programmes included in Tables One and Tw o, as examples of technolo gy transfer to least 
developed countries.  The data used in these exampl es is for the budgeted 20 02/03 June year, which is 
the fiscal year these programmes are operated under.   The information provided is based on the new 
reporting criteria agreed by the TRIPS Council in February 2003. 
B. EXAMPLES OF NZAID  BILATERAL PROGRAMMES  
1. Samoa: Secondary Education Curriculum and Resources Programme  
New Zealand is providing $NZ1.2 million in 2002/03 to assist the Samoan Department of 
Education in developing its first single stream curricu lum for years 9 to 13.  It is aimed at improving 
the quality, equity, relevance and efficiency of the Samoan secondary education system.    The programmes include: 
 
• completing the production of curriculum statements and resource materials; 
• provision of in-service training to support the implementation of the new curriculum; 
• local educators working with advisers to produ ce, distribute and train in the use of the new 
curriculum.   
2. Kiribati:  Marine Training Centre (MTC)  
 Kiribati is an independent Micronesian country c onsisting of 33 atolls and reef islands.  It is 
one of the poorest countries in the Pacific, with fishing one of its main industries.  In 2002/03, 
New Zealand's bilateral allocation for Kiribati was $NZ3.1million.  The primary emphasis of the 
programme is on education and pu blic sector capacity building.  
 
                                                     
 
1 NZAID forecast their expenditure based on the NZ Fiscal year which runs from June to July.  The 
2002 Calendar year is the most  recent full set of data NZAID has on its actual expenditure.   IP/C/W/412/Add.6 
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  A new programme set up this year is aimed at improving the effectiveness of Kiribati Marine 
Training Centre (MTC) to maintain the competitiven ess of Kiribati's seamen in the maritime labour 
market and to train local staff to take over the management and teaching responsibilities at the school.  
Technical assistance is being provided in the form  of in-country consultancies, as well as support for 
MTC students to undertake advance deck officer an d engineering training and there will also be 
assistance to upgrade the training equipment.  This is  the first year of the programme and its forecast 
expenditure in 2002/03 is $NZ235,000, but the progr amme is expected to run for a number of years. 
 
3. Tuvalu:  Education Programmes 
 Tuvalu is a small constituti onal monarchy, whose 10,000 peopl e are spread over nine low, 
lying coral atolls.  With most people involved in subs istence agriculture and fishing, two-thirds of the 
formal work force is employed by the governme nt.  The focus of NZAID's programmes is on 
improving the Tuvalu education system, supporting economic reform and encouraging trade.   
  In 2002/03, we provided $NZ670,000 to Tuva lu in direct funding for education and 
$NZ550,000 through regional programmes.  The main bilateral programmes included:  
 
• the provision of study awards to study in NZ to transfer skills to further the social and 
economic development of Tuvalu; 
• provision of funding for short sources and training attachments in NZ and in-country training 
to improve vocational occupations in Tuvalu; 
• a study into the national pre-school and vo cational and technical education system; 
• support to the Tuvalu Maritime Training Institu te, which is the key training institution in 
Tuvalu.  
C. NZAID:
  REGIONAL PROGRAMMES  
 In addition to bilateral assistance, New Zeal and also provides LDCs with transfers of 
technology and investment incentives through variou s regional assistance programmes.  In some cases 
it is difficult to separate expenditure specifically provided to LDCs, although it is clear that LDCs 
within these regions benefit from these programmes.    1. ASEAN:  Programme  
 NZAID provided $NZ1.8 million of assistance to ASEAN countries in 2002/03.  A number of 
the programmes underway include projects designed to  promote science and technology expertise.  
From 2002 the focus of new projects has been on promoting trade and development.  The projects involve most of the ASEAN membership, which includes three LDCs, (Cambodia, Lao PDR and 
Myanmar).  Projects currently underway involve:  
 
• a natural gas reticulation project, focused on tech nology transfer and training in the areas of 
natural gas development and infrastructure;  
• a corrosion management project;  
• developing national customs legisl ation and operational guidelines; 
• building the capabilities of national plant protec tion organizations in phytosanitary matters;  IP/C/W/412/Add.6 
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 • programmes aimed at promoting LDC understa nding of WTO agreements and multilateral 
trade negotiations through training;  
• small and medium sized enterprise development. 
 All these projects involve the transfer of technical skills and know-how to LDCs, with a 
strong focus on partnerships between NZ companie s and counterpart companies in the LDCs.   
 2. ADAF Programme:  Safe Drinking Water for Resettlers in Afghanistan 
 This project seeks to provide an additional op tion for providing safe drinking water for the re-
settler population in Afghanistan, through the use of ozone to treat severely polluted water. The 
budget for this project in 2002/03 was $NZ400,000.   Under this programme, ten community-based 
water treatment plants have been established and trai ning has been provided to officers to the Ministry 
of Rural Rehabilitation and Development (MRRD)  in social mobilisation as well as survey, 
installation and maintenance processes.  It is hope d the technology will be used in other parts of 
Afghanistan through UNICEF's water and sanitati on programme.  The programme, which is funded 
by NZAID's Asia Development Assistance Facility and implemented by Empower Consultants Ltd of 
New Zealand, has a strong technology transfer component.  
 3. Pacific Regional Education Programme  
 New Zealand funds a programme of strategically  integrated formal and non-formal education 
projects aimed at the basic education, tertiary and vocational levels. NZAID also provides core 
funding to the University of the South Pacific and the South Pacific Board for Educational Assessment.  The forecast expenditure in 2002/ 03 is $NZ2.5million for the Pacific Regional 
Education Programme, $NZ2.7million to the Univers ity of the South Pacific and $NZ900,000 to the 
South Pacific Board for Educational Assessment. 
  The training is usually undertaken by consulta ncies.  Any agency or individual based in 
New Zealand, the Pacific Region or internationally is eligible to apply for the contestable funding 
round.  However, preference is given to agencies /individuals with existing strong in-country Pacific 
partnerships. 
 
4. Africa:  Primary and Non-Formal Education and Training 
 New Zealand's development assistance to Africa is concentrated in the south and east of the 
continent, and focuses on education and non-form al training, rural development and technical 
assistance.  The forecast expenditure  in 2002/03 is $NZ2,045,000.  
  New Zealand is currently involved in programme s under a grant assistance  system in Lesotho, 
Mozambique and Zambia.  The aim of the programme s is to contribute to improving the quality of 
primary and non-formal education with a particular  emphasis on the needs of girls and women.  New 
Zealand also provides assistance to African LD Cs through multilateral agencies, the Emergency 
Management and Disaster Relief (EMDR), a Good Governance Programme and the Voluntary 
Agency Support Scheme (VASS).  
III. OTHER PROGRAMMES WITH A TECHNOLOGY TRANSFER COMPONENT   
A. I
NTELLECTUAL PROPERTY  
16. The Intellectual Property Office of New Zealand (IPONZ) provides technical assistance, on 
request, to help developing and least developed countries on issues relating to the registration of IP/C/W/412/Add.6 
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 intellectual property rights.  For example, IPONZ ha s helped to train officers and provided equipment 
for the Tongan Intellectual Property Office. 
17. New Zealand has been actively involved in th e development of the South Pacific Forum 
Regional Framework on Intellectual Property.  We ha ve provided technical assistance and advisors in 
developing national, regional and international rul es and legislation to protect the intellectual property 
rights of indigenous peoples.  This has led to the creation of a sui generis  system to protect traditional 
knowledge and expressions of culture that can be a dopted by South Pacific nations, many of which 
are LDCs. 
  IP/C/W/412/Add.6 
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 ANNEX 
  
TABLE ONE 
 
 
NZAID Bilateral Programmes to Least Developed Countries with a 
Major Technological Transfer Component ($NZ) 
  
 
BILATERAL PROGRAMMES 
  
Education  
Trade   
Health  
Water/ Sanitation  
Capital/ Construction Good 
Govt/ Finance Total 
Bangladesh 260,000      260,000 
Bhutan 116,000      116,000 
Cambodia 35,000 35,000    520,000 590,000 
Nepal 730,000      730,000 
Kiribati 1,700,000    570,000 260,000 2,500,000 
Lao PDR 160,000     480,000 640,000 
Maldives 610,000      610,000 
Myanmar 41,000      41,000 
Samoa  5,350,000  40,000   820,000 6,200,000 
Solomon Islands 1,200,000   20,000  570,000 1,800,000 
Tuvalu 750,000    54,000 150,000 950,000 
Vanuatu 2,400,000 46,000  510,000  470,000 3,430,000 
TOTAL  13,400,000 81,000 40,000 530,000 624,000 3,270,000 18,000,000 
 
 IP/C/W/412/Add.6 
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 TABLE TWO 
 
 
NZAID Regional Programmes to Least Developed Countries with a 
Major Technological Transfer Component ($NZ) 
 
 
 
 
REGIONAL  
PROGRAMMES   
Education  
Trade   
Water/ 
Sanitation  
Capital/ 
construction  
Good 
Governance/Finance 
  
Total 
African Regional 
Programmes  1,200,000    140,000 1,340,000 
Pacific Regional 
Programmes   6,700,000     6,700,000 
ADAF  40,000  1,100,000 200,000  1,340,000 
APEC  100,000 47,000   122,000 270,000 
ASEAN Regional  280,000 410,000 50,000 350,000 130,000 1,220,000 
TOTAL  8,320,000 460,000 1,150,000 550,000 400,000 10,900,000 
 
 
 
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