RESTRICTEDWORLD TRADE
ORGANIZATIONWT/WGTTT/M/3
6 November 2002
(02-6117)
Working Group on Trade and Transfer of Technology
Third Session
NOTE ON THE MEETING OF 10 OCTOBER 2002
Chairman:  H.E. Mr. Stefán Jóhanesson (Iceland)
A. ADOPTION OF THE DRAFT AGENDA
1. The draft agenda was contained in Airgram WTO/AIR/1910 of 25 September 2002.  The
Chairman indicated that since the circulation of the agenda the Working Group on Trade and Transfer
of Technology had received two further submissions which he would invite the respective delegations
to introduce during the discussion on Agenda item E.  The Chairman also indicated that he would liketo raise two issues under "other business", namely the schedule of meetings and work programme of
the Working Group.
2. The agenda was adopted.
B. REQUEST BY UNIDO FOR OBSERVER STATUS
3. The observership of the World Bank and the International Monetary Fund was approved,
while that of UNIDO was accepted ad referendum, because one delegation indicated that it did not
have instructions and so reserved its right to revert back on this issue.
C. PRESENTATION BY UNIDO
4. A presentation was made by the Programme Manager of the Industrial Promotion and
Technology Branch of UNIDO.1  He outlined the work that UNIDO has been doing to facilitate
transfer of technology and identified some of th e barriers to such transfer, including inadequate
institutional infrastructure, management and marketing skills.  UNIDO's objective, namely to assist
countries in strengthening their capabilities in transfer, absorbing and mastering technology, was
explained at the policy, institutional and enterprise level.  The speaker highlighted UNIDO's
investment activities and initiatives with respect to technology transfer and provided illustrations
through case studies.  He also explained the services offered by UNIDO's International Technology
Centres and Investment and Technology Promotion Offices.
5. The presentation was followed by an active discussion with Members asking questions and
seeking clarifications from the speaker.  One delegation pointed out that about two-thirds of UNIDO's
International Technology Centres were in Western Europe and stated that there should be more suchcentres in developing countries.  Some delegations requested further details regarding the relationship
between UNIDO's work and WTO rules, with special reference to the Agreement on Trade-Related
Aspects of Intellectual Property Rights (TRIPS).  The questions of private sector involvement and
                                                     
1 The slide presentation is available in Room 2028.WT/WGTTT/M/3
Page 2
concerns with respect to intellectual property protection were also mentioned.  One delegation stated
that even if a country had a good investment regime, it did not necessarily imply that there would be
increased investment flows to that country.  Even if increased Foreign Direct Investment (FDI) was
forthcoming it might not necessarily be accompanied  by transfer of technology.  Accordingly this
delegation wished to know whether it was necessary  for Governments to intervene at some point to
ensure transfer of technology.  Some questions regarding UNIDO's cooperation with the International
Atomic Energy Agency and the response of UNIDO's members towards the clean energy approach
adopted by the United Nations (UN) were also raised.  In response to the questions and comments
from delegates, the speaker stated that amongst the obstacles to increased technology transfer in
developing countries were strategic and managerial problems.  He explained the different stages in the
cycle of technology transfer in which UNIDO was involved and referred to a joint project with
UNCTAD on evaluating the impact of TRIPS on technol ogy transfer issues in developing countries.
He emphasised that this project had only just commenced.  The speaker stated that UNIDO made no
distinction between the private and public sector and also worked closely with the private sector,
including small and medium sized enterprises.  He emphasised that UNIDO supported technology
transfer on a "fair" basis.
D. PRESENTATION OF COUNTRY EXPERIENCES
6. The work relating to the sharing of country experiences on technology transfer continued with
a presentation by the Director of Strategic Alliances, Industrial Research Assistance Program,
Canada.2 He explained the function and operation of the Industrial Research Development Program
and other Canadian technology development models  and programmes.  He cautioned against looking
at technology transfer from too narrow a perspective and explained that in his view it should cover
both traditional intellectual property such as pate nts, copyright and designs, as well as "know-how"
and "show-how".  The speaker referred to a knowledge-based economy, which needs receptor
capacity in the form of people to assess technology opportunities and firms to implement and develop
technology.  He emphasised the importance of a stable climate to plan, receive and protect intellectualproperty and associated foreign direct investment in technology.  In his view the ability to develop
local suppliers and favourable fiscal regimes with respect to tax and investment would also help in the
transfer of technology.  In conclusion, he stated that technology transfer must be both domestic and
global and that technology transfer needed foreign direct investment, which should provide local spin-
off benefits.  He said that improved technology would enhance wealth and economic development in
the recipient countries.
7. During the ensuing discussions, Members asked questions and requested clarifications from
the speaker.  One delegation, referring to the speaker's statement that the definition of technology
transfer should not be too narrow, said that the mandate of the Working Group supported an inclusive
definition.  One delegation wished to know how to strengthen the domestic regulatory framework,
keeping in mind the link between the domestic regulatory framework and international agreements.  A
number of questions and comments related to issues concerning the ownership and transfer ofintellectual property rights.  One delegation wished to know more about the relationship between
transfer of technology and competition policy.  The speaker responded to the questions and comments
made by Members.  He explained the ownership and transfer of intellectual property rights with
respect to research and development at the Government and at the university level.  He said that in the
Canadian experience, it had been found to be more effective to transfer the right to use intellectualproperty under licence rather than to transfer ownership of the intellectual property.
                                                     
2 The slide presentation is available in Room 2028.WT/WGTTT/M/3
Page 3
E. SUBMISSIONS BY MEMBERS
8. The representative of the European Communities briefly reintroduced its submission
(WT/WGTTT/1) on "Trade and Transfer of Technology".  He highlighted an inclusive definition of
technology transfer and spoke of capacity building, the identification of technology transfer channels
and the need to deepen expertise and knowledge in the area of technology transfer.  He proposed thatthe Working Group proceed in a systematic manner by  first identifying the issues, then sharing the
expertise in other organisations and only then consider making possible recommendations according
to its mandate.  One delegation emphasised that the work of the Working Group should move forward
with the purpose of fulfilling the Doha mandate.  Another delegation stated that it would like to
explore complementarity of work between the Wo rking Group and other WTO bodies, so that there
was no overlap and the Working Group could benefit from the work being done in other bodies.  This
was supported by Members and it was decided that the Secretariat would seek inputs from other WTO
bodies in this regard.
9. A joint communication was submitted by the delegations of Cuba, Egypt, Honduras, India,
Indonesia, Kenya and Zimbabwe (WT/WGTTT/3) on "Provisions Relating to Transfer of Technology
in WTO Agreements".  In the introduction of the paper, it was stated that as a first step in fulfilling the
Working Group's mandate it would be important to examine the extent to which the existing WTO
provisions relating to technology transfer had been effectively implemented, the difficulties
experienced in utilising these provisions, and to th en come up with concrete proposals in the context
of the Doha mandate.  The representatives of Jamaica, Pakistan and Mauritius requested that their
delegations also be included as co-sponsors of the submission.  One delegation mentioned that, in its
view, exchange of know-how could in some instances have greater development value than the actualtransfer of tangible goods and inputs.  This submission would come up for substantive discussion in
the next meeting.
10. The delegation of Canada introduced its submission on "Technology Transfer – the Canadian
Experience" (WT/WGTTT/2).  The Canadian representative stated that the paper provided an
overview of factors that they had identified as crucial to the development and growth of Canada's
technology transfer system.  He explained that the paper initially looked at technology transfer within
the context of Canada's new innovation strategy and then reviewed the Canadian experience of
technology transfer from a number of different perspectives.  These included domestic Canadian
policies and technology transfer, Canada as a recipient of technology, and Canada as a provider of
technology.  The speaker emphasised that general business framework policies, many of which could
be furthered in WTO obligations, could provide a critically important underpinning to all other efforts
to support technology transfer.  One delegation mentioned how a strong regulatory system still had tobe combined with financial resources.  This submission would also come up for substantive
discussion in the next meeting.
F. 
 OTHER BUSINESS
11. The Chairman shared with Members his views regarding the holding of a fourth meeting later
this year and the possible issues that could be taken up in that meeting.  After a brief discussion it was
agreed that the fourth session of the Wo rking Group would be held on 28 November 2002.
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