WORLD TRADE  
ORGANIZATION  IP/C/W/431 
16 November 2004 
 (04-4895) 
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 
  
 The following communication, dated 10 November 2004, 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. 
  Communications from other developed country Me mbers will be circulated as addenda to this 
document.   
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 1. This submission provides an update report on New Zealand's activities in pursuance of our 
commitments under Article 66.2 of the TRIPS Agreem ent concerning technology transfer to least 
developed countries (LDCs) for the period December 2003-November 2005. 
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 whic h constitute the document-embodied knowledge on 
information and technology;  and iv) production a rrangement linkages 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 de velopment assistance programmes, through 
encouraging trade in goods and services and th rough facilitating a strong intellectual property 
environment. IP/C/W/431 
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 5. The main vehicle for the channelling of our technology transfer to LDCs is through the 
New Zealand Agency for International Development (NZAID).  NZAID views technology transfer as 
an implicit element in achieving its overall objec tive of reducing poverty.  Due to New Zealand's 
history, culture and geographical location, mo st of the relevant programmes implementing 
Article 66.2 focus upon LDCs in our neighbouring Asia -Pacific region. The majority of New Zealand 
development assistance activities are implemented by organizations and individuals selected through a 
competitive tendering process, most of which are w on by New Zealand agencies, consultancies or 
companies.  The remainder of New Zealand's aid budget goes through other channels such as core 
funding to multilateral agencies, funding of multilate ral agencies for specific projects, budget support 
or sector-wide approaches with partner governme nts and funding arrangements with New Zealand 
agencies. 
II. DETAILS OF INCENTIVES FOR TECHNOLOGY TRANSFER TO LDCS  
A. N
ZAID - TRADE AND DEVELOPMENT PROGRAMME  
6. NZAID's Trade and Development Programme for FY03/04 was $NZ3.2 million.  The 
programme's aim is to assist developing countries to harness international trade for development.  
This is done by building partners' capabilities in production techniques, business skills, marketing and 
export.  Trade facilitation assistance and technology tran sfer is also provided in areas such as customs 
valuation, metrology and Sanitary and Phytosanitary Standards. The projects involve a number of LDCs, including Cambodia, Lao PDR and Myanmar.  Projects currently underway:  
• training in customs valuation and post clearance audit to customs officials (provided by 
New Zealand Customs Service); 
• building the capabilities of national plant pr otection organizations in phytosanitary 
matters (involving, Ministry of Agriculture and Forestry, Hort Research and 
New Zealand  consultants); 
• Strengths, weaknesses, opportunities, threats (SWOT) analysis for government 
metrology departments to address equipment, infrastructure, policy and human resource 
needs (provided by New Zealand's Ministry of Consumer Affairs); 
• promotion of small and medium sized enterprise development. 
7. Other projects in the pipeline include technical  assistance to improve food safety/quality and 
support for the development of new export sectors.  
8. All these projects involve the transfer of t echnical skills and know-how to LDCs, with a 
strong focus on partnerships between NZ organiza tions and counterpart companies in the LDCs. 
9. In the section below, we provide further backgr ound on a selected number of the bilateral and 
regional programmes, as examples of technology transfer  to least developed countries.  The data used 
in these examples is for the budgeted 2003/04 June year, which is the fiscal year under which these 
programmes operated.  The information provided is based on the new reporting criteria agreed by the 
TRIPS Council in February 2003.  IP/C/W/431 
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 B. EXAMPLES OF NZAID BILATERAL PROGRAMMES  
1. Kiribati:  Marine Training Centre (MTC) 
10. Kiribati is an independent Micronesian country cons isting of 33 atolls and reef islands.  It is 
one of the poorest countries in the Pacific, with fi shing one of its main industries.  The primary 
emphasis of the NZAID programme is on educati on and public sector capacity building.  In 2003/04, 
New Zealand's bilateral assistance to Kiribati am ounted to $NZ2.84million, with around 77% of this 
for education and training.  This included gran ts totalling $NZ307,000 for basic education, and 
$NZ2.187 million for a range of training activities both within Kiribati and overseas. 
11. An example of this assistance is NZAID's support to the Kiribati Marine Training Centre 
(MTC), which is intended to maintain the competitiv eness of Kiribati's seamen in the maritime labour 
market.  Over time it is hoped that Kiribati nati onals will take over the management and teaching 
responsibilities at the school.  Support is being provided for MTC students to undertake advanced 
deck officer and engineering training and there will also be assistance to upgrade the training equipment.  Expenditure in 2003/04 was $NZ275,000.  
C. N
ZAID : REGIONAL PROGRAMMES  
12. 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. Pacific Regional Environment Programme 
13. The Pacific Regional Environment Programme includes a contestable fund that supported a 
range of non-governmental and community-based orga nizations to undertake environmental projects.  
For example, $NZ103,800 was provided to the Tokelau Community Waste Project to develop 
community-based waste management programmes on each of Tokelau's three atolls, based on 
experience gained through a 10-day study tour to New Zealand.  NZAID also supported the WWF to work with customary landowners to develop a conservation and resource management plan for 
Tetepare Island in the Solomon Islands. 
2. Pacific Regional Agencies 
14. New Zealand also gives $NZ1.27 million a y ear to South Pacific Applied Geoscience 
Commission (SOPAC) which provides basic geological  knowledge, improvements in land and ocean 
use, improved water and sanitation provision, deve lopment of mineral resources, hazard and disaster 
management and sustainable development by taki ng into account the geo-environmental impacts of 
development. 
3. Africa:  Basic Education  
15. New Zealand's development assistance to Africa is  concentrated in the south and east of the 
continent, and focuses on basic education, includi ng  non-formal training, community development 
and projects that address the impact of HIV/AIDs.  The forecast expenditure for the Africa 
programme in 2003/05 is $NZ10,500,000.  
16. New Zealand is currently involved in progra mmes under a grant assistance system in Zambia, 
Zimbabwe, Tanzania, Kenya, Mozambique and a bilateral programme with the Republic of 
South Africa.  The primary aim of the programmes is to contribute to improving the quality of basic IP/C/W/431 
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 and non-formal education with a particular emphasi s on the needs of girls and women.  New Zealand 
also provides assistance to African LDCs 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  
17. 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 
intellectual property rights. 
18. In August 2004, officials from China visited IPONZ to gain a better understanding of 
New Zealand's intellectual property systems, incl uding government structure, budget administration, 
and information infrastructure. 
19. 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.   
20. In July 2004, New Zealand provided a speaker from the NZ Customs Service for the training 
Workshop on the Enforcement of Intellectual Propert y Rights held in Nadi, Fiji.  The workshop was 
organized by the United States Patent and Trademar k Office in partnership with the Pacific Islands 
Forum Secretariat. 
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