WORLD TRADE  
ORGANIZATION  IP/C/W/536/Add.2 
19 October 2009 
 
 (09-5103) 
Council for Trade-Related Aspects 
of Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
 
AUSTRALIA 
 
Addendum  
   The following communication, dated 12 Octobe r 2009, from the delegation of Australia is 
being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the 
TRIPS Agreement.  
_______________ 
 
 
1. The following report is submitted by Australia in accordance with paragraph 1 of the 
Decision of the Council for TRIPS of 19 February 2003 on Implementation of Article 66.2 of the 
TRIPS Agreement (IP/C/28), which provides that  developed country Members submit annually 
reports on actions taken or pl anned in pursuance of their commitments under Article 66.2. 
2. Article 66.2 of the TRIPS Agreement provid es 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 country (LDC) Members in order to enable them 
to create a sound and viable technological base”. 
3. In this report, technology transfer is taken to  include training, education and knowledge.   
I. TYPE OF INCENTIVES 
4. Australia’s transfer of technology to LDCs occurs through the facilitation of a strong 
intellectual property environment in LDCs, throug h incentives that form part of the Australian 
Government’s bilateral and regi onal development assistance pr ogrammemes, and through export-
related activity as a product of market operation.  Technology transfer may occur through exports and 
outward or direct investment by Australian firms in other countries.  This transfer of technology may occur in joint ventures between Australian fi rms and overseas companies or governments. 
5. Australia recognises that technology transfer, ec onomic growth and poverty reduction are best 
fostered in an efficient, open  and market-based economy.  Fundam ental to this framework is good 
governance.  Australia provides extensive governan ce capacity-building and technical assistance to 
LDCs.  This includes programmes aimed at im proving economic and financial management, 
strengthening the rule of law and justice, increa sing public sector effectiveness and developing civil 
society and human rights. IP/C/W/536/Add.2 
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  6. Australia considers that the education of LDC nationals at Australian (and other) universities 
and their training in the use and management of technological equipment comprise two of the most 
effective means of transferring technology a nd knowledge to which Au stralia has access.  
Consequently, a significant portion of Australia’s a ssistance is directed at providing education and 
training.   
II. GOVERNMENT AGENCIES MAKING INCENTIVES AVAILABLE 
7. This report provides information on activities that  promote technology transfer carried out by 
a number of Australian Government agencies, in cluding the Australian Agency for International 
Development (AusAID), the Department of Climate Change, IP Australia, and the Australian Centre 
for International Agricultural Research. 
III. ELIGIBLE ENTERPRISES AND INSTITUTIONS PROVIDING INCENTIVES 
8. The vast majority of Australian development assistance activities are implemented by 
organisations and individuals selected through a competitive tendering process.  Australian aid to LDCs has been untied since 2001, allowing non-Austra lian organisations to bid for contracts to supply 
goods and services under the bilateral and multilate ral development assistance programmes.   
IV. APPROPRIATE TECHNOLOGY 
9. For sustainable development, it is critical that t echnology transfer be appropriate to the needs 
of the particular country.  In order to ensure this, Australia jointly develops country strategies with all 
major partner countries to form the basis of developm ent assistance.  Country strategies are informed 
by a country-specific analysis of development need s and dialogue with partner governments as to the 
most effective way for Australia to help address thos e needs.  Australia has working partnerships with 
a range of international and community organisatio ns to ensure harmonisation of resource allocation 
and appropriately targeted assistance. 
V. MONITORING AND EVALUATION 
10. Monitoring and measuring the effectiveness and results of development assistance are key 
concerns for the Australian aid programmeme.  A rang e of mechanisms and experts are used to ensure 
the effectiveness of monetary incentives, incl uding the AusAID Audit Committee, High Level 
Advisory Groups, the Aid Advisory Council, the Committee for Development Co-operation, peer 
reviews and corporate reviews.  To ensure that Au stralia is at the forefront of global efforts to 
improve development effectiveness, AusAID’s Office of Development Effectiveness was established in 2006. 
VI. DETAILS OF INCENTIVES FOR TECHNOLOGY TRANSFER TO LDCS 
11. Australia’s technical assistance to LDCs for 2008-09 is summarised in the table at Annex 1.  
The (preliminary) figures capture the significant know ledge transfer and capacity  building that occurs 
in the provision of technical assistance.  The to tal value of Australian assistance to LDCs in 
2008-2009 was $A 263 million.
1   
12. In response to feedback received from LDCs, Australia has reviewed its definition of 
technical assistance to ensure great er transparency in its reporting under Article 66.2.  Some activities 
previously included have been dele ted, reflecting the fact that they would be more appropriately 
classified as humanitarian assistance.  As a result, fi gures for Australia’s technical assistance to LDCs 
                                                      
1 All figures are quoted in Australian dollars.  IP/C/W/536/Add.2 
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  in 2008-09 are lower than that of previous years a nd the number of recipient countries, particularly in 
Africa, is reduced.2  The difference between 2007-08 and 2008-09 is also due to less expenditure in 
Afghanistan, Myanmar and the Solomon Islands, which in the last reporting year received substantial 
levels of one-off expenditure. 
VII. BILATERAL PROGRAMMES 
13. Examples of bilateral activities, carried out by  AusAID, for which technology transfer or 
investment is a major component or the primary aim have been included below. 
A. SOLOMON ISLANDS  
14. Australia has committed approximately $A 45 m illion in bilateral development assistance to 
the Solomon Islands in 2009-2010.  Initiatives with  a technical assistance component include support 
to the Solomon Islands Ministry of Health and Me dical Services, through the provision of technical 
assistance in areas such as proc urement; agricultural extension training through the Agricultural 
Livelihoods Programme, and technical support to the Mi nistry of Lands and the Ministry of Forestry. 
B. SOLOMON ISLANDS - RAMSI 
15. The RAMSI Economic Governance Pr ogramme builds the capacity of core functions of the 
Ministry of Finance and Treasury to enable it to deliver against the Solom on Islands Government’s 
policy priorities, and to support the Ministry in its  programme of reform to  improve public financial 
management and achieve sustainable economic growth.  
C. VANUATU – GOVERNANCE FOR GROWTH  
16. Australia is supporting the Government of Va nuatu through the $A 32 million Governance for 
Growth programme, from 2008 to 2011.  Vanuatu and Australia aim to work jointly to identify and 
overcome governance obstacles to broad based grow th, effective service delivery and poverty 
reduction, especially to Vanuatu’s rural population.   The programme draws on a wide range of aid 
modalities, including technical assistance, grants, di rect investment as incentives, and brokering the 
involvement of international organisations and other donors. 
D. EAST  TIMOR  
17. Australia’s assistance to East  Timor has a strong focus on providing training to develop the 
capacity of the Timorese people.  This includes th e provision of scholarships to Australian tertiary 
institutions.  In addition, Australia has provided support for vocational training programmes in East 
Timor to provide training for over 10,000 Timo rese people in high-demand industries such as 
building, construction, health services and hospita lity.  Australian-funded professional development 
programmes have helped train civil servants, legal professionals, law enforcement officers and 
journalists, helping to improve overall econom ic governance and support civil society.  
                                                      
2 The Australian Government is committed to broadening and deepening engagement with Africa 
across a full spectrum of issues including enhanced trade and commercial investments, strengthened diplomatic 
links and increased development assistance.  Australia w ill increase its development assistance to Africa by over 
40 per cent to $A 163.9 million in 2009-10.  The Government is committed to developing a new strategy for its development assistance to Africa.  This will support Africa’s progress towards the Millennium Development 
Goals in areas where Australia has a comparative advant age and has already invested , such as food security, 
maternal and child health and water and sanitation.  Australia will also help build Africa’s human resource capacity through a significantly expanded scholarsh ips programme and targeted technical assistance. 
 IP/C/W/536/Add.2 
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  E. C
AMBODIA  
18. Assistance to Cambodia has a strong focus on cap acity building, in particular supporting the 
maintenance and rehabilitation of national roads, as well as expanding electricity coverage to remote 
communities. Education and training support to  Cambodia is primarily conducted through 
development scholarships awarded to Cambodian students to study at Australian universities. 
F. SAMOA  
19. Australia’s bilateral assistance to Samoa has a strong focus on the development of the private 
sector. Australia’s support to the Foreign Investment  Advisory Service (FIAS) provides advice to the 
Samoan Government on policy and strategies to help attract investors.  Moreover, support to the IFC’s 
Pacific Enterprise Development Facility improv es small and medium-sized businesses access to 
finance and investment through targ eted programmes. Australia, in partnership with other donors, is 
also supporting Samoa’s Power Sector Expansion Proj ect.  As part of this project, Australia is 
providing capacity building to help improve th e regulatory environment and upgrade the power 
infrastructure to assist the government to meet the growing demand for electricity. 
VIII.  REGIONAL AND GLOBAL PROGRAMMES 
20. In addition to bilateral assistance, the Australia n aid programme provides LDCs with transfers 
of technology through various regi onal and global programmes.  In most cases, it is difficult to 
separate expenditure specifically to LDCs through these programmes; however, LDCs are included as 
beneficiaries.  
A. ASEAN-A USTRALIAN DEVELOPMENT COOPERATION PROGRAMME  
21. The ASEAN-Australian Development C ooperation Programme, with a budget of 
$A 57 million (2008-2015), has a pr ogramme stream that includes: customs capacity building; legal 
infrastructure for e-commerce; a ssistance in private sector comp etitiveness and small to medium 
enterprise (SME) development; quality assurance syst ems for fruit, vegetables, fish and fishery 
products; animal and plant health management and qua rantine; and risk assessment in support of food 
safety measures.  
B. ECONOMIC COOPERATION WORK PROGRAMME (ECWP) 
22. The ASEAN-Australia New Zealand Free Trade Area Agreement was signed on 
27 February 2009.  The Agreement includes a chapter on economic cooperation. This is the first time 
Australia has included such a provi sion in a free trade agreement.  It will be implemented through an 
Economic Cooperation Support Programme consis ting of a Support Unit and Work Programme 
activities worth an estimated $A 20-25 million over five  years, designed to fund technical assistance 
and capacity building for ASEAN Member States to implement the free trade agreement.   
C. WORLD ORGANISATION FOR ANIMAL HEALTH (OIE)  PROJECT TO STRENGTHEN VETERINARY 
SERVICES TO COMBAT AVIAN INFLUENZA AND OTHER PRIORITY DISEASES IN SOUTH EAST 
ASIA 
23. This project is assisting veterinary services in  the region to meet OIE international quality 
standards thereby improving governance and their capacity to control and prevent trans-boundary 
emerging and re-emerging animal diseases.  Australia  is providing up to $A 3 million over 3 years to 
support the OIE/FAO “OFFLU” network of expertise on animal influenza (an international scientific 
advisory and technical exchange programme for avian influenza), conduct quality assessments and 
implement capacity building activities.    IP/C/W/536/Add.2 
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  D. SOUTH EAST ASIA FOOT AND MOUTH DISEASE CAMPAIGN  
24. This programme is implemente d by OIE and involves the coordinated control of foot and 
mouth (FMD) disease by eight ASEAN countries (Cambodia, Indonesia, Lao PDR, Malaysia, 
Myanmar, Philippines, Thailand and Viet Nam).  The long-term objective of the campaign is to facilitate and promote the international trade in anim als and animal products by eradicating foot and 
mouth disease from participating countries by 2020.  This includes improving veterinary standards 
and adding value to the regional control pr ogramme.  Australia has provided nearly 
$A 6.6  million 
for the programme since 1996.  The current Ph ase III of the programme runs from 2009 to 2011. 
E. ASIA REGIONAL SANITARY AND PHYTOSANITARY CAPACITY BUILDING PROGRAMMEME  
25. The programme aims to enhance the capacity  of selected ASEAN countries (all except 
Singapore and Brunei) to meet international sta ndards consistent with the WTO Agreement on the 
application of Sanitary and Phytosanitary (SPS) measures. In particular, countries’ capabilities to 
address animal and human health aspects of SPS are being strengthened.  The aid programme provided $A 4.3 million towards this initiative, im plemented by the Department of Agriculture, 
Fisheries and Forestry.  This progr amme ran from 2004 and ended June 2009.
  
F. CAPACITY BUILDING IN ECOHEALTH RESEARCH ON EMERGING INFECTIOUS DISEASES  
26. This programme, implemented by the Internati onal Development Research Centre will build 
capacity for EcoHealth Research on Emerging Infectious Diseases (EID) at the research-policy interface in the Southeast Asia region. The in itiative will fund capacity building programmes in 
applied EcoHealth research approaches to EID target ed to key Southeast Asian stakeholders and a 
research project on EID-prevention and mitigation w ithin vulnerable communities in Southeast Asia. 
Australia is providing $A 1.7 million over five years from June 2009. 
G. WTO
 GLOBAL TRUST FUND 
27. Since 2002, Australia has contributed over $A 5.5 million to the WTO’s Global Trust Fund. 
In June this year, the Government announced that  Australia would increase its annual contribution to 
the fund to $A 1.75 million, compared to $A 500,000 and $A 1 million in 2006-07, and 2007-08 respectively. Our increased contribution demonstr ates our commitment to a successful conclusion to 
the Doha Round.  The Trust Fund provides trade-rela ted technical assistance to developing country 
Members of the WTO to participate in the D oha Round of multilateral trade negotiations.  
H. A
USTRALIAN SCHOLARSHIPS  
28. Australian scholarships provide educationa l, research and professional development 
opportunities to support growth in the region and to bu ild enduring links at the individual, institutional 
and country levels. Award programmes, manage d by AusAID are the Australian Development 
Scholarships (ADS) and the Australian Leadersh ip Awards (ALA).  These programmes aim to 
strengthen human resource capacity, build partnerships and linkages,  address regional priority issues 
and contribute to long-term development needs in  Australia's partner countries. The Endeavour 
programme managed by DEEWR focuses on strengtheni ng education linkages,  skills and knowledge 
while showcasing Australia's excellence in educa tion, science and training.  From 2006, Australian 
scholarships will provide approximately $A 1.4 bill ion over five years. LDCs targeted under these 
scholarship programmes include: Afghanistan, Bangladesh, Bhutan, Cambodia, Gambia, Haiti, 
Kiribati, Laos PDR, Lesotho, Liberia, Malawi , Maldives, Mozambique, Nepal, Rwanda, Samoa, 
Sierra Leone, Solomon Islands, Tanzania, Timo r-Leste, Tuvalu, Uganda, Vanuatu and Zambia. 
 IP/C/W/536/Add.2 
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  IX. TECHNICAL ASSISTANCE ACTIVITIES CARRIED OUT BY OTHER 
AUSTRALIAN GOVERNMENT AGENCIES 
A. D
EPARTMENT OF CLIMATE CHANGE  
29. The Department of Climate Change is engage d in several programmes which encourage the 
development and deployment of cl imate change-related technology in  the LDCs of the Asia-Pacific 
region.  As a department whose function is polic y development rather than implementation, the 
Department of Climate Change re lies on partnerships with other agencies to achieve climate change-
related mitigation and adaptation outcomes.   
30. The key delivery mechanism for Australia’s regiona l engagement in regard to climate change 
is the International Climate Change Adaptati on Initiative (ICCAI), which DCC implements in 
conjunction with AusAID.  Through this progra mme, the Australian Government is investing 
$A 150 million over three years from 2008-2009 to m eet high priority climate change adaptation 
needs in vulnerable countries in our region.  The primary geographic emphasis of the ICCAI is on Australia's neighbouring island nations, which includes the least developed countries of Kiribati, Samoa, East Timor, Vanuatu, Tuvalu, and Solomon Islands.  
31. The ICCAI comprises four interrelated compone nts, which in combination will deliver a 
coordinated package of development assistance: 
• Improved scientific information and unde rstanding, such as technology transfer; 
• Strategic planning and vulnerability assessments;  
• Implementing, financing and coordi nating adaptation measures;  and 
• Multilateral support for climate change adaptation.  
 
32. The overarching objectives of the programme are to: 
• establish a sound policy, scientific and analytical basis for long-term Australian action to 
help developing partner countries adapt to the impacts of climate change.  In order to do 
this, Australia has been developing technological capacity within partner countries;  
• increase understanding in partner countries of the impacts of climate change on their 
natural and socioeconomic systems;  
• enhance partner country capacity to assess key climate vulnerabilities and risks, formulate 
appropriate adaptation strategies and plans, and mainstream adaptation into decision 
making; and 
• identify and help finance priority adaptation measures to increase the resilience of partner 
countries to the impacts of climate change.  
 
33. Key activities currently implemented under the Initiative include: 
• The Pacific Climate Change Sc ience Programme ($A 20 million, 2009 to 2011) is helping 
Pacific island countries and East Timor bette r understand how climate change will impact 
on them;  
• The Asia-Pacific Community-b ased Adaptation Small Grants Programme ($A 6 million, 
2009 to 2013, including approximately $A 4 million for Pacific island countries and East 
Timor) is providing funds to implement priori ty adaptation measures at the local level in 
14 Pacific island countries, the Mekong s ub-region, East Timor and Sri Lanka;   IP/C/W/536/Add.2 
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  • The Pacific Future Climate Leaders Programme ($A 3 million, 2010 and 2011) will work 
to build a group of Pacific leaders with a greater understanding of climate change and tools to enhance resilience; and  
• The Mekong Delta Vulnerability and Adapta tion Initiative (Australian contribution 
$A 1.14 million, 2009 and 2010) aims to in crease understanding of key socio-economic 
and environmental impacts of climate cha nge in 12 provinces of the Mekong delta region 
and strengthen the capacity of delta provinces to adapt to climate change impacts.  
34. Strong support is also provided for climat e change adaptation through improved water 
resource management in the Pacific.  This will require enhancing the existing infrastructure and 
technological capacity of partner countries.  Examples include: 
• Support for the Government of Tuvalu’s Water and Sanitation Strategy and the 
construction of about 300 large rainwater tanks in the capital, Funafuti.  Households are 
instructed in the maintenance of roof catch ment and guttering and the management of the 
collected water for domestic use.  Aust ralia also provides a highly qualified water 
engineer, who will help Tuvalu maximise th e impact of both Australian and other donors 
to the Strategy;  and 
• Small grant schemes in Vanuatu, Samoa a nd Solomon Islands. These provide funds for 
community-initiated climate change adaptation projects.  In Samoa and Vanuatu, communities have increased their water storage capacity by constructing rainwater tanks.  
On the drought prone island of Aniwa in Vanuatu, communities have built small solar 
desalination stills capable of producin g enough fresh water for drinking.  
35. Through the ongoing Pacific Islands Climate Pr ediction Project, the Australian Bureau of 
Meteorology is working with climate-dependent industries and government agencies in ten Pacific 
countries on tailored long-range (three to six months ) climate predictions.  This support will assist 
water resource managers to plan for expected rain fall shortages by increasing storage capacity.  Least 
developed countries involved in this programme ar e Solomon Islands, Vanuatu, Kiribati, Tuvalu, and 
Samoa. 
B. A
USTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH (ACIAR) 
36. The Australian Centre for Internationa l Agricultural Research (ACIAR) provided 
approximately $A 10.1 million in 2008-09 for joint technical and policy research projects with LDCs, 
mainly in the Asia-Pacific region.  ACIAR work s both bilaterally on research programmes that link 
Australian research institutions with developing co untry institutions, and multilaterally on research 
through grant and project specific funding to International Agricultural Centres.  Projects include technology adoption, knowl edge transfer and capacity building in areas including agriculture, 
fisheries and forestry productivity and sustainab ility; animal nutrition and health; agricultural 
innovation, training and institutional reform s;  and invasive pests and diseases.  
37. In 2008-2009 ACIAR supported projects for the following LDCs:  Afghanistan, Bangladesh, 
Bhutan, Burma, Cambodia, Lao PDR, Samoa, So lomon Islands, East Timor and Vanuatu.  Funds 
distribution is managed by the Australian Commissione d Organisations that are directly contracted to 
ACIAR.  Although the figure quoted does not n ecessarily represent actual funds transferred to the 
countries listed, the countries are direct beneficiaries of the funds. 
C. IP
 AUSTRALIA  
38. Australia assists in the process of technology transfer by facilitating the development of 
strong intellectual property regimes in countries in the Asia and Pacific Region.  The principal mechanism for facilitating this deve lopment is through the World Intellectual Property Organisation -IP/C/W/536/Add.2 
Page 8  
 
  Australia Joint Working Group on Intellectual Propert y Technical Assistance in the Asia and Pacific 
Region.  Under this Working Group, Australia  assists in the coordination, planning and 
implementation of IP technical cooperation projects in the region.  Ongoing work to support Pacific Islands Forum countries in the establishment of a Pacific Regional Trademark System has been 
identified as a key priority. 
 
  IP/C/W/536/Add.2 
 Page 9 
 
 
   
ANNEX  
 
Australia’s Aid Programme:  Australia’s Technical Assistance to  
Least-Developed Countries 2008-2009  
 
 Australia’s Technical Assistance ODA to Least Developed Countries for 2008-2009 is 
summarised below (preliminary figures).  Data is not available for IP specific technology transfer 
elements, however the below figures capture the significant knowledge-transfer and capacity building 
that occurs in the provision of technical assistance. 
 
 
Country 
 $A  
Afghanistan  11,874,527.58 
Bangladesh 22,432,721.04 
Bhutan 1,985,640.37 
Cambodia 32,556,313.30 
Ethiopia 55,295.00 
Kiribati 8,772,137.62 
Lao PDR 10,081,985.18 
Lesotho 120,000.00 
Maldives 2,528,887.07 
Myanmar (Burma) 4,253,358.00 
Nepal 3,022,825.00 
Samoa 19,671,124.50 
Solomon Islands 77,524,951.92 
Timor Leste (East Timor) 46,366,648.70 
Tuvalu 1,650,264.37 
Vanuatu 19,943,652.21 
 
Total  262,840,331.87  
 
 
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