RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/15 
16 May 2006 
 (06-2388) 
Working Group on Trade and Transfer of Technology 
Fifteenth Session  
 
 
NOTE ON THE MEETING OF 29 MARCH 2006 
 
Chairperson:  H.E. Mr. Manuel A. J. Teehankee (Philippines) 
  
 
A.
 ADOPTION OF THE AGENDA ........................................................................................................1  
B. ELECTION OF THE CHAIRPERSON ................................................................................................1  
C. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY ............1  
D. ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING 
COUNTRIES ............................................................................................................................... ...2 
E. OTHER BUSINESS ........................................................................................................................3  
 
 A. A
DOPTION OF THE AGENDA  
1. The agenda contained in Airgram WTO/ AIR/2779 of 16 March 2006 was adopted.  
B. ELECTION OF THE CHAIRPERSON  
2. In accordance with the consensu s reached at the 8 February meeting of the General Council 
on the slate of names of Chairpersons for vari ous WTO bodies, Members formally confirmed the 
election of Ambassador Teehankee of the Philippin es as Chairperson of the Working Group on Trade 
and Transfer of Technology.  
C. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
 3. Under this agenda item, the Working Group considered two studies, one by UNCTAD and 
the other by UNIDO.  The representative of UNCTAD briefed the Working Group on recent trends in international transfer of technology and their implicat ions.  He also shared the results of a recent study 
on the development of the salmon industry in Chile.   
4. The representative of UNCTAD, on the basis of the World Investment Report 2005 ,   
highlighted a number of means, including foreign di rect investments in research and development, 
payments for intellectual property, royalties and licensing fees and volume of trade in capital goods 
etc., which could help in estimati ng the quantum of international t echnology flows.  The study found 
that the rapid growth in outsourcing in some em erging economies and the increasing sophistication of 
consumers in those countries suggested that knowle dge, skills and techniques were increasingly being 
transferred internationally.  However, the benefits of increased technology transfer were concentrated 
in a few countries and limited to a few industries.  Sectors such as health, ag riculture and energy, as 
well as basic infrastructure that were crucial to na tional development seem no t to have benefited.  
Trade and trade rules had a direct and indirect bear ing on the trends of technology flows.  Therefore, WT/WGTTT/M/15 
Page 2  
 
  measures to reduce the costs of trade in intell ectual property and capital goods as well as to help 
developing countries build a sound dom estic technological base could f acilitate international flows of 
technology.  Technology exporting countries shou ld consider offering incentives and supporting 
measures to facilitate cross-border technology flows, particularly to developing countries. 
5. The case study on the "Salmon Industry in Chile" found that as a result of concerted efforts by 
national and international partners in the transf er, adaptation, development, and diffusion of 
technologies, there were distinct gains in that sector .  National institutions that helped firms acquire 
and use technology and which supported emerging firms and encouraged the use of technical 
standards, had also played a pivotal role in the development of the salmon industry.  Also, the close 
cooperation between public institutions, academia and the private sector had enabled the industry to 
innovate.  The study highlighted the importance of  home and host-country measures in facilitating 
technology transfer and the fact that favourable tr ade terms had resulted in further investment and 
technology.  
6. 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. 
7. In the discussion that ensued, most Member s said that the studies by UNCTAD and UNIDO 
were useful contributions to the discussions in  the Working Group.  However, some Members 
expressed the view that specific case studies, focusi ng on a single sector had only a limited usefulness 
for the deliberations in the Working Group.  They suggested that the focus of work in the Working 
Group should be at a macroeconomic level, rather  than the microeconomic approach of the case 
studies, especially that presented by UNIDO.  These Me mbers felt that the WTO always looked at the 
broader trade policy picture and that this should remain the approach of the Working Group.   
D. A
NY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
 8. Under the agenda item relating to the consider ation of possible recommendations on steps that 
might be taken within the mandate of the WTO to increase flows of technology to developing 
countries, Members engaged in a constructive discussion on a submission (WT/WGTTT/W/10) by 
India, Pakistan and the Philippines at the 12
th Session of the Working Group.  Besides introducing 
certain recommendations that the Working Group c ould make, the submission had highlighted the 
crucial role of technology and technical know-how  for improving productivity, promoting export 
growth and attaining developmental goals.   
9. Detailed comments, both of a general and speci fic nature, were made by some developed 
countries.  Questions were asked and clarificatio ns sought with regard to objective, intent and 
substance of some of the suggested recommendations .  Without discounting the oversight role of the 
Working Group, these Members reiterated that these i ssues should ideally be addressed in the relevant 
WTO bodies which had the necessary expertise.  W ith regard to the draft recommendation in 
paragraph 7 of the WT/WGTTT/W/10 to expand t echnical assistance under the TRIPS Agreement by 
linking Article 67 to Articles 66.2 and 7, one Memb er wanted to know whether the intention was to 
expand technology transfer available to LDCs to al l developing countries.  That Member argued that 
the  issue should be dealt in the relevant WTO bod y and that at this stage, there was no agreement 
among Members to amend the TRIPS Agreement to expand technology transfer under Article 66.2 to 
developing countries.  Likewise, with regard to  proposals contained in paragraph 13 of the paper 
relating to "co-operation in sharing information" , "regulatory standards among Patent Offices" and  WT/WGTTT/M/15 
 Page 3 
 
 
  "the use of Article 29 of the TRIPS Agreement", it was suggested that these issues were technical and 
should be addressed in the TRIPS Council.  Clarif ications were sought on what was meant by 
"standard monitoring authorities in the developi ng countries" and "model for national biosafety 
clearing house" in paragraph 10 of the submission.   Those Members which had posed questions on 
document WT/WGTTT/W/10, agreed to submit them in writing to the proponents. 
10. Members also considered a communication from Cuba (WT/WGTTT/W/12) which analysed 
some of the provisions relating to technology transf er in the TBT and SPS Agreements.  It highlighted 
difficulties faced by developing countries in that  regard, besides proposing certain recommendations 
to enhance flows of technology to these countries.  A number of Members appreciated the focus of the 
Cuban communication on TBT/SPS issues.  They felt that it highlighted the problems faced by 
developing countries and that it was important to s eek pragmatic solutions to these concerns.  Other 
Members, however, again stated that in their view  those issues could be best addressed in TBT/SPS 
Committees.  
E. OTHER BUSINESS  
 
11. No matter was raised under "Other Business".  
12. In closing, the Chairman informed Members th at the next meeting of the Working Group was 
tentatively scheduled for 30 June 2006 .  
 
__________