. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/21 
27 November 2007 
 (07-5219) 
Working Group on Trade and Transfer of Technology 
Twenty-First Session  
 
 
 
NOTE ON THE MEETING OF 19 OCTOBER 2007 
 
Chairperson:  H.E. Mr. Kwabena Baah-Duodu (Ghana)  
  
 
A.
 ADOPTION OF THE AGENDA .........................................................................................................1  
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY ..............1  
C. ANY POSSIBLE RECOMMENDATIONS ON STEPS T HAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING 
COUNTRIES ............................................................................................................................... ...2 
D. OTHER BUSINESS .........................................................................................................................2  
 
 
A. ADOPTION OF THE AGENDA  
1. The agenda contained in Airgram WT O/AIR/3082 of 8 October 2007 was adopted .   
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
2. The analysis of the relationship between trade and transfer of technology continued on the 
basis of a presentation made by the Philippines at th e last meeting of the Working Group held in 
July 2007.  At that meeting, the Philippines had si gnalled its intention to provide sectoral examples at 
the present meeting, but was unfortu nately unable to do.  As a result, Members restricted their 
comments to the presentation made at the last meeting. 
3. That presentation had highlighted the role that technology and its successful transfer could 
play in a country's economic development through stimulating the growth of advanced technology 
entrepreneurial start-ups and enha ncing revenues of existing firms.  Sharing its experience with 
technology generation and acquisition, the Philipp ines had underscored the role of host-country 
measures, including among others;  the regulatory regi me, incentives, foreign direct investment (FDI), 
trade in capital goods, foreign study and training,  development of human capital, public-private 
partnership and research and development in tech nology generation, its transfer, adaptation and 
diffusion.  The presentation had focused on some of the primary tools that it had successfully used for 
technology acquisition, including en couraging FDI, increasing the ratio of  the import of capital goods 
to growth domestic product (GDP), licensing and study, as well as training of scientists and technicians abroad.  The process had also resulte d in an improved allocation of resources among 
economic sectors and industries, as well as the ge neration and adaptation of technology that, had in 
turn, resulted in a better organization of firms.  This had led to greater competitiveness, growth and 
productivity across the economy.  WT/WGTTT/M/21 
Page 2  
 
  4. The presentation had also brought to light some  of the policy challenges that the Philippines 
had faced in its efforts to create a sound knowle dge and technological base.  These included inter alia :  
technology contracts containing provisions relating to exclusive rights for supply of machinery;  
technology contracts demanding guarantees against cha nges in taxes, tariffs, currency exchange rates, 
remittances and royalties, contracts containing provisi ons for the excessive use of foreign technicians 
and limiting the use of competing technologies.   
5. Members continued their discussion on the elem ents of the Philippines' presentation and 
agreed that sharing of national experiences in tec hnology transfer had great value in broadening the 
scope of the deliberations.  The discussions also helped clarify some of the complex issues Members 
were grappling with in the Working Group.  Such knowledge-sharing exercises would facilitate a 
better understanding of the complex nexus between trad e and transfer of technology and help to make 
progress in the deliberations of the Working Group.   Clarifications were sought on some of the 
elements of the presentation.  In particular, in formation was sought on future plans to attract 
technology and the Philippines' experience on th e linkage between intellectual property and 
technology transfer.  Members looked forward to  hearing the second part of the Philippines' 
presentation containing sectoral examples.  The role of public policy, linkage between foreign 
investment and the small and medium enterprises and development of human capital in a country's 
efforts to develop its technological base was also underscored. 
6. India indicated that it would share its own experience in technolog y generation and its 
transfer at the next meeting of the Working Group.   
C. 
ANY POSSIBLE RECOMMENDATIONS ON  STEPS THAT MIGHT BE TAKEN WITHIN THE MANDATE 
OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
7. 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 continued their discussion on the basis of the revised room document tabled in April 2007 by India, Pakistan and the Philippines.  While acknowledging the key role that Mode IV of 
the GATS could play in the transfer of technolog y, one Member expressed the view that intra-
company transferees provided the most direct link to  technology transfer, and therefore, that was an 
area in which Members should pursue new or im proved market access commitments in the GATS.  
On the proposed electronic ID cards for tracking workers under Mode IV, the need for sharing 
national experiences was flagged.  The discussion also underscored the importance of appropriate 
investment promotion for an effective programme of  technology transfer.  In that context, one 
Member asked how the measurement of restrictions  on FDI and technology transfer could be built 
into the consideration of the proposals tabled in the revised document so that the Working Group and 
other WTO bodies equipped with relevant expertise could gauge their potential.  Members also said 
that they continued to review the room document  and that they would provide further comments on it 
at future meetings of the Working Group.   
8. The Philippines suggested, and Members agreed, th at the Secretariat prepare a self-contained 
document containing a summary of discussions since the inception of the Working Group on the two 
agenda items. 
D. 
OTHER BUSINESS  
9. The Chairman , before closing the meeting, informed Members that the next meeting of the 
Working Group was tentatively scheduled for 6 December 2007.  
__________