WT/GC/W/888, WT/COMTD/W/282  
G/C/W/829, S/C/W/450  
IP/C/W/702  
5 July 2023  
(23-4568) Page: 1/3 
General Council  
Committee on Trade and Development  
Council for Trade in Goods  
Council for Trade in Services  
Council for Trade -Related Aspects of Intellectual 
Property Rights  Original: English  
 
 
THE ROLE OF TRANSFER OF TECHNOLOGY IN RESILIENCE BUILDING:  
WORK PROGRAMME ON ELECTRONIC COMMERCE   
COMMUNICATION FROM THE AFRICAN GROUP (ANGOLA; BENIN; BOTSWANA; BURKINA FASO; 
BURUNDI; CABO VERDE; CAMEROON; CENTRAL AFRICAN REPUBLIC; CHAD; CONGO; CÔTE 
D'IVOIRE; DEMOCRATIC REPUBLIC OF CONGO; DJIBOUTI; EGYPT; ESWATINI; GABON; THE 
GAMBIA; GHANA; GUINEA; GUINEA -BISSAU; KENYA; LESOTHO; LIBERIA; MADAGASCAR; 
MALAWI; MALI; MAURITANIA; MAURITIUS; MOROCCO; MOZAMBIQUE; NAMIBIA; NIGER; 
NIGERIA; RWANDA; SENEGAL; SEYCHELLES; SIERRA LEONE; SOUTH AFRICA; TANZANIA; TOGO; 
TUNISIA; UGANDA; ZAMBIA AND ZIMBABWE)  
The following communication, dated 3 July 2023, is being circulated at the request of the African 
Group.  
 
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1  CONTEXT  
1.1.  This c ommunication should be read in conjunction with the paper  WT/GC/W/883  - 
WT/WGTTT/W/34/Rev.1  - WT/COMTD/W/277  - IP/C/W/700  "The Role of Transfer of Technology in 
resilience Building: Reinvigorating the discussions in the WTO on trade and transfer of technol ogy", 
as submitted to the General Council, the Working Group on Trade and Transfer of Technology ,  the 
Committee on Trade and Development  and the Council for Trade -Related Aspects of Intellectual 
Property Rights  and document WT/GC/W/868 "Policy space for i ndustrial development - a case for 
rebalancing trade rules to promote industrialisation and to address emerging challenges such as 
climate change, concentration of production and digital industrialisation". These latter two 
submissions set out the design a nd parameters for discussions on Agreement -specific issues as 
pertains to industrial development in general, including the role, towards that end, of transfer of 
technology and trade.  
1.2.  The Declaration on Global Electronic Commerce  adopted on 20 May 1998, e stablished a 
comprehensive work programme to "…examine all trade -related issues relating to global electronic 
commerce, including those issues identified by Members…". It further states that "The work 
programme will involve the relevant World Trade Organiz ation (WTO) bodies, take into account the 
economic, financial, and development needs of developing countries, and recognize that work is also 
being undertaken in other international fora". The Doha Ministerial Declaration introduced, for the 
first time in the WTO, a binding mandate for WTO Members to examine the relationship between 
trade and technology transfer (TT). There is great complementarity between the mandates of the 
Work Programme on E -Commerce (WPEC) and the Doha mandate on the relationship betwe en trade 
and transfer of technology. Development lies at the heart of both mandates.  
1.3.  Technology and innovation are central to the implementation of the 2030 Agenda and the 
Sustainable Development Goals (SDGs). When utilized effectively, technology can be m obilized to 
identify barriers to and provide solutions for sustainable development challenges from the local to 
global level. Advancing the development dimension of the WPEC requires that development and the 
various Sustainable Development Goals (SDGs) are  mainstreamed into the discussion at the GC and WT/GC/W/888 • WT/COMTD/W/282 • G/C/W/829 • S/C/W/450 • IP/C/W /702 
 
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  the relevant committees. In order to meet the SDGs, new technology needs to be harnessed and 
accessed by developing countries and LDCs, supported by an effective framework for technology 
transfer.  
1.4.  E-Commerce can be used as a powerful tool to integrate marginalised communities and 
enterprises into the global economy. To do so, steps must be taken to address the digital divide 
which is pronounced in terms of existing digital infrastructure, data processing skill s and digital 
technologies. According to the UNCTAD Digital Economy Report, out of a total of 4,422 so -called 
colocation data centres, 80 per cent are in developed countries, with the United States accounting 
for about 40 per cent. Africa and Latin America  together account for less than 5 per cent of the 
world's colocation data centres. The Cloud market is also highly concentrated, with 4 out of the five 
providers based in US.  
1.5.  Lack of digital skills and digital infrastructure pose grave threats to the exis ting export 
competitiveness of African SMEs. There is potential danger that many SMEs in Africa will be 
outcompeted by digital players in the developed countries with access to high -tech digital 
technologies.  
1.6.  These challenges highlight that the gains from the growing global E -Commerce will not be 
automatic for developing countries, particularly Africa. Bridging this gap will require strategic 
interventions at all levels, including at the national and internatio nal levels.  
1.7.  Ensuring the safety and cybersecurity of hardware and software systems are forming an 
integral part of new -age trade agreements around the disclosure or sharing of the source code prior 
to the transfer of technologies embodying such codes. The re are topical policy considerations on the 
confidentiality of the proprietary know -how vis-à-vis regulatory and judicial requirements. As more 
and more attacks against software and hardware increase, there will be severe disruptions to trade 
flows. There is a need for a discussion on the importance of source codes to technology diffusion.  
1.8.  Given important public policy motivations, for disclosing source code and algorithms, trade 
agreements have often included a number of exclusions and clarifications. Ensu ring that open source 
is not inadvertently impacted by these trade rules is one essential clarification. Exceptions around 
public policy and security might also be mentioned which can reduce risks of such rules impacting 
on regulation. There are however se rious questions about whether such exceptions are sufficient. 
For example, in countries with large public sectors, algorithms need to be understood by managers 
as part of procurement. But when public sectors are increasingly outsourced to consultants and 
private contractors, questions of coverage and exceptions may not be enough.  
1.9.  Members must explore mechanisms to address deepening digital inequities, mechanisms to 
encourage the diffusion of software technology, assess ways to foster regulatory compliance in the 
digital space and address anti -competitive practices by some of the prominent digital giants which 
are enforced through terms and conditions imposed on customers to use their digital platforms. 
Overall, the unfair trade practices have arisen, in par t, from market dominance which in turn arises 
from access to data. This underscores the importance of data for creating competitive businesses. 
Many retailers have closed on account of unfair trade practices of the global digital giants. Strategies 
for enh ancing their stranglehold and deepening their market share include buying out competitors . 
2  ISSUES TO BE DISCUSSED WITH A VIEW TO MAKING RECOMMENDATIONS FOR 
ADOPTION AT MC13  
2.1.  These discussions which are of burgeoning interest to WTO Members could be centered  around 
the following critical questions. It is expected that these issues will be thoroughly analysed and 
discussed among Members, with a view to making recommendations to Trade Ministers for adoption 
at MC13.  
a. How can technology transfer assist in bridgi ng the digital divide and how can the WTO 
contribute to this process?  
b. How should WTO Members balance the accessibility to source code/s and create a secure, 
transparent, and trusted technology environment?  WT/GC/W/888 • WT/COMTD/W/282 • G/C/W/829 • S/C/W/450 • IP/C/W/702  
 
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  3  WAY FORWARD  
3.1.  It is proposed that discussions on th e role and relevance of the WTO rules in relation to source 
code be examined and for engagement to commence as soon as possible under the 1998 Work 
Programme on Electronic Commerce.  
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