RESTRICTED  
 WORLD TRADE  
ORGANIZATION  WT/WGTTT/W/13 
1 November 2006 
 (06-5239) 
  
Working Group on Trade and Transfer of Technology  
 
 
 
DRAFT 
 
REPORT (2006) OF THE WORK ING GROUP ON TRADE AND  
TRANSFER OF TECHNOLOGY TO THE GENERAL COUNCIL 
 
 
I. INTRODUCTION 
1. At the Doha Ministerial Conference Ministers ag reed "... to an examination, in a Working 
Group under the auspices of the General Council, of the relationship between trade and transfer of 
technology, and of any possible recommendations on st eps that might be taken within the mandate of 
the WTO to increase flows of tech nology to developing countries."1  The Working Group on Trade 
and Transfer of Technology has since been carrying out this mandated work. 
2. Since its report to the General Council in 20052, the Working Group has held four formal 
sessions (29 March, 13 July, 6 October and 14 Nove mber 2006*).  The minutes of these meetings are 
contained in documents WT/WGTTT/M/15, WT/WGTTT/M/16, WT/WGTTT/M/17 and 
WT/WGTTT/M/183 respectively.  At these meetings, Me mbers continued the analysis of the 
relationship between trade and transfer of  technology, as well as considered possible 
recommendations that might be taken within the ma ndate of the WTO to increase flows of technology 
to developing countries.   
II. RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY 
3. Discussions on the relationship between trade a nd transfer of technology took place in the 
meetings of the Working Group held in 2006.  Though Members did refer to earlier submissions4, the 
discussions were largely based on case studies presented by UNCTAD and UNIDO.  
4. The UNCTAD case study on "Salmon Industry in Chile" highlighted  that efforts by national 
and international partners in the transfer, adaptati on, development, and diffusion of technologies had 
led to distinct gains in the salmon sector.  Institu tions that had assisted in the acquisition and use of 
technology and which had provided support to emerging firms and encouraged the use of technical 
standards, had also played a pivotal role in the development of the salmon industry.  The study also highlighted the importance of co-operation betw een public institutions, academia and the private 
sector.  Appropriate home and host-country me asures in facilitating technology transfer had 
demonstrated that favourable trade terms had r esulted in further investment and technology.  
5. UNCTAD also briefed the Working Group on recen t trends in international transfer of 
technology and their implications.  On the basis of the World Investment Report 2005 , UNCTAD 
                                                     
 
1 Paragraph 37 of WT/MIN/(01)/DEC/1. 
2 WT/WGTTT/7. 
3 To be issued. 
4 WT/WGTTT/1 and IP/C/W/398 - WT/WGTTT/W/5. 
* To be held. WT/WGTTT/W/13 
Page 2  
 
  found that the benefits of increased technology tr ansfer were concentrated in a few countries and 
limited to a few industries.  Sectors such as  health, agriculture, and energy as well as basic 
infrastructure that were crucial to national developm ent had not benefited.  Since trade and trade rules 
had a direct and indirect bearing on the trends of technology flows, it was found that measures to reduce the cost of trade in intellectual propert y and capital goods as well as to help developing 
countries build a sound domestic technological base coul d facilitate internationa l flows of technology. 
6. Members were also briefed about UNCTAD's ongoing work on "Trends in Cross-Border 
Flows of Technology".  Six indicators were identified for assessing cross-border technology flows:  (i) payment of royalties and licensing fees by the user s to technology providers;  (ii) trade in capital 
goods;  (iii) trade in business and professional services;  (iv) number of patents filed;  (v) the flow and 
expenditure of transnational corporations in R&D;  and (vi) the growth of industrial alliances.   
7. The UNIDO study on "Technology Transfer & Trade:  The Toy Industry in India" 
underscored the importance of technology and innovation for achieving economies of scale and creating competitiveness;  development of skills an d local capacity;  conformance to international 
standards through technology upgrading;  innovative designs;  and quality and the application of IT 
for enhanced competitiveness in the development of small scale industry.  The study underlined the 
vital importance of technology and innovation fo r economies of scale and creating competitiveness. 
8. Although the studies were considered useful to  the discussion in the Working Group, some 
Members felt that case studies, focusing on a single sector were limited in their usefulness to the 
deliberations in the Working Group.  They suggested  that the focus of work in the Working Group be 
at the macroeconomic level rather than follow a microeconomic approach.  These Members felt that  
considering trade policy from a broader perspec tive should remain the approach of the Working 
Group.  That would provide a better response to the technological needs of developing countries.  
Suggestions were made for the studies to focus on i ssues relating to the need for developing countries 
to undertake research and development and to purs ue innovation and adopt po licies conducive to their 
social and economic development;  strengthening of the concept of special and differential treatment 
within WTO provisions;  setting up of informati on exchange mechanisms in WTO councils and 
committees on technology transfer with a view to increasing information on the role of trade disciplines in encouraging innovation.   
9. During discussions on the relationship between trade and transfer of technology, some 
Members stressed the need for all WTO provisions rela ting to transfer of technology to be effectively 
implemented.  References were made to Articles 7, 8, and 66.2 of TRIPS Agreement.  Pointing to the 
importance of the mandate of the Working Group to developing countries and to the development 
dimension of the Doha Round, a number of Members stated the need to assess the impact of multilateral trade rules on technology flows from an obj ective perspective.  In that context, it was 
suggested that the Working Group  address the challenge of implem enting WTO provisions related to 
technology transfer in the WTO Agreements and c onsider how a mechanism could be set up, within 
the WTO, to ensure effective compliance of these provisions.   
III. ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN 
WITHIN THE MANDATE OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES 
10. Members continued their consideration  of possible recommendations on steps that might be 
taken within the mandate of the WTO to increase fl ows of technology to developing countries on the 
basis of the submission tabled by India, Pakistan and the Philippines
5.  In addition to suggesting 
recommendations that the Working Group could ma ke to increase technology flows to developing 
                                                      
5 WT/WGTTT/W/10.  WT/WGTTT/W/13 
 Page 3 
 
 
  countries, the submission highlighted the crucia l role of technology and technical know-how for 
improving productivity, promoting export growth a nd attaining developmenta l goals.  A number of 
comments were made, and clarifications were sought by Members with regard to the objective, intent 
and substance of some of the suggested recommendations.   
11. India, Pakistan and the Phili ppines provided responses to the questions that some Members 
had posed on the issues contained in the submission.   Additionally, at the Seventeenth Session they 
introduced a room document elaborating upon some of  the recommendations contained in their earlier 
submission and provided further clar ifications in this regard.   
12. Members also considered a communication from Cuba6 which analysed some of the 
provisions relating to technology transfer in the TBT and SPS Agreements.  It highlighted difficulties 
faced by developing countries in the two areas and proposed certain recommendations to enhance 
flows of technology to these countries.  Some Members appreciated the focus of the communication and felt that it highlighted the problems faced by developing countries on which Members needed to find pragmatic solutions.  Others, however, stre ssed that it was best to address those issues in 
TBT/SPS Committees.  Cuba also provided detaile d responses to the questions posed on their 
submission. 
13. It was also suggested that WTO establish a webpage for Members to share and disseminate 
information on incentives for  investment and technol ogy transfer and on best practices in technology 
transfer.  In that context, information sharing and co-operation among patent offices needed to be 
encouraged.  Members considered the clarifications  as a positive contribution to advance the work of 
the Working Group and agreed to revert to the issues raised therein at the next meeting.  
IV. FUTURE WORK 
14. The Working Group on Trade and Transfer  of Technology has proceeded with its 
examination of the relationship between trade and transfer of technology and continued to explore 
possible recommendations on steps that might be ta ken within the mandate of the WTO to increase 
flows of technology to developing countries.  Although the work carried out in the Working Group 
has contributed to a better understanding of the issu es involved, much work still remains to be done.  
It is expected that work in the coming year would continue along these lines. 
 
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6 WT/WGTTT/W/12.