RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/WGTTT/W/17 
23 November 2010 
 
 (10-6253) 
Working Group on Trade and Transfer of Technology  
  
 
DRAFT 
 
REPORT OF THE WORKING GROUP ON TRADE AND TRANSFER OF  
TECHNOLOGY TO THE GENERAL COUNCIL 
 
 
I. INTRODUCTION 
1. At the Fourth Ministerial Conference in Doha in November 2001 Minister agreed to "an 
examination, in a Working Group under the auspi ces of the General Council, of the relationship 
between trade and transfer of technology, and of any possible recommendations on steps that might be 
taken within the mandate of the WTO to increase flows of technology to developing countries".
1  
Paragraph 43 of the Hong Kong Mi nisterial Declaration of 18 December 2005 reaffirmed the 
Ministers' commitment to advance the work of the Working Group.   
2. Since the November 2009 Report of the Working Group on Trade and Transfer of 
Technology to the General Council, the Working Group has held four sessions during 2010.  The 
reports of the meetings are contai ned in documents WT/WGTTT/M/31-34.2  As in previous years, at 
these meetings, Members continued the analysis of the relationship between trade and transfer of 
technology, as well as considered any possible reco mmendations on steps that might be taken within 
the mandate of the WTO to increases flows of tech nology to developing countries.  At its 34th Session 
the Working Group adopted its Annua l Report to the General Council. 
II. RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY 
3. During the year 2010, Members continued their analysis of the relationship between trade and 
transfer of technology largely on the b asis of two presentations – the first entitled "The linkage 
between technology transfer and pr oductivity gains in agriculture''  was made by the Food and 
Agriculture Organization (FAO) at the 30th Session, and the second by UNCTAD, was based on their 
report entitled " Technology and Innovation Report 2010:   Enhancing food security in Africa through 
science, technology and innovation " at the 32nd Session of the Working Group.  In addition, under this 
agenda item Switzerland provided br iefings and regular updates on th e Lausanne Group Initiative – a 
private initiative that the École Polytechnique Fé déral de Lausanne (EPFL) , in collaboration with 
SMEs and other actors in the field of innovation and technology generation, had taken with a view to 
filling the gap between Swiss technology holder SMEs  and firms in the LDCs  and the developing 
countries.   
4. At the 31st Session of the Working Group Members continued with their discussion of the 
FAO's presentation on " The linkage between technology transfer and productivity gains in 
agriculture''.   The presentation highlighted the important role technology had played in increasing 
crop yields of a number of selected crops in developing countries, including wheat, maize, rice 
                                                      
1 Paragraph 37 of WT/MIN/(01)/DEC/1.   
2 The Minutes of 34th Session of the Working Group will be  issued as WT/WGTTT/M/34 after the 
Working Group's meeting on  10 December 2010.   
 WT/WGTTT/W/17 
Page 2  
 
  (paddy), sorghum and cassava during the period 1965-2000.  It found that the Green Revolution had 
helped increase per capita food availability by over 18  per cent.  That had improved the livelihood of 
several million farmers and had helped increase crop yields on fixed-land areas.  The presentation also 
noted that despite these positive changes, one out of every six people in the world still went hungry 
daily.  The food crises in the recent past and the current economic downturn had only served to 
exacerbate this situation.  It further noted th at not all countries had benefited from the Green 
Revolution and that, in many instances, the natural resource base had been negatively affected.  The 
presentation also underlined the need for substa ntially improving crop yields through improved 
technology in view of the future growth in food demand which was expected to increase by 
70 per cent.   
5. In the discussion that followed, Members highlighted the fact that technology advancement 
was at the centre of globalization and economic inte rdependence and that its transfer could play a 
crucial role in developing countries' efforts to enha nce their trade opportunities and realize growth and 
development aspirations.  Consta ntly changing market demands with consumers requiring high 
product and service standards could become prohib itive and thus deny market access to products 
originating from countries that did not meet such re quirements.  It was, th erefore, necessary that 
countries kept pace with technological advancement and innovations so as to meet those new market 
requirements.  In that context, so me Members felt that effective transfer of technology was critical to 
the growth and development of de veloping and least-developed countries.  References were also made 
to the need for common but differentiated responsib ilities within the context of the climate change 
debate and the need to find appropriate solutions to the technological challenge faced by developing 
countries and LDCs if they were to play a critical  role in combating envi ronmental degradation and 
the effects of climate change.   
6. Members also felt that the presentation by sever al international organizations, including the 
FAO, had highlighted the positive linkage between  technology transfer and gains in trade and 
productivity.  Members, therefore, requested the c ontinuation of such presentations by Members and 
other international organizations, including if po ssible, the World Intellectual Property Organization 
(WIPO), UNCTAD and, in particular, the United Na tions Environmental Programme (UNEP) as most 
of the Multilateral Environmental Agreements (M EAs) contained elaborate technology-transfer 
provisions.   
7. Underscoring the usefulness of country-specifi c presentations on national experience with 
technological advancement, some Members also stat ed that the dramatic transformation of some 
countries in Asia, particularly in East and South-Ea st Asia, that had climbed a steep industrialization 
curve in a very short span of time, could provide good lessons for developing countries to emulate.  
They felt that such experience-sharing would not only enrich discussions in the Working Group but 
would also provide useful lessons which could allo w the developing countries to make more informed 
choices.   
8. In the course of discussions, Pakistan shared  its experience as a beneficiary of the Green 
Revolution and stated that the Green Revolution ha d had a positive impact on crop yields such as rice, 
maize and wheat.  Between the period of 1967-77, Pakistan's production had increased from 4 million 
tonnes to 9 million tonnes and had, at present, reac hed 23 million tonnes.  More than a 100 per cent 
increase in one decade and a 400 per cent increase in four decades was a result of active collaboration 
with international research organizations like th e Consultative Group on International Agriculture 
Research (CGIAR) and effective bilateral coopera tion with USAID which ensured, among others, the 
availability of plant nutrients (fertilizer).  Th e research breakthrough in wheat crop yield was the 
development of so-called, short-straw varieties.  The international flow of germ-plasm through 
CGIAR had played a crucial role in spreading the benefits of the Green Revolution.  Despite those 
productivity gains, gaps still existed between the pe r-hectare yield of a progressive farmer (60 monds 
per hectare) and the average yield (27 monds per hectare) of wheat in Pakistan.  Notwithstanding  WT/WGTTT/W/17 
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  these achievements, challenges remain ed for policy makers in Pakist an in ensuring availability of 
plant nutrients, quality seed, mechanization of fa rms and in bridging the gap between progressive 
farmer and average yield.   
9. In highlighting its Government's efforts in building capacity in developing countries to 
conduct and apply agricultural research through tr aining and exchange programmes for scientists and 
educators, the United States particularly mentioned the US Department of Agriculture's (USDA) "cold 
chain" programme, which provided technical assi stance to emerging economies in building their 
capacity to move perishable agri cultural products from farm to cons umers, and maintaining safety and 
quality of these products by temperature control.  In addition, the USDA pr ogramme also aimed at 
fostering public-private partnerships in these c ountries by providing technical assistance in designing 
and implementing a supportive regulatory environm ent for the cold chain infrastructure.   
10. A short briefing was made by Switzerland on the salient features of the Lausanne Group 
Initiative,  a private initiative that the École Polytechnique  Fédérale de Lausanne  (EPFL) had taken on 
innovation and technology generation.   The project aimed at building and maintaining a small group 
of competences in which people would meet to develop new methodology a nd operational procedures 
to be made available to governments and other stak eholders.  The project aimed to involve four key 
types of competences to address the technology-related issues:  (i) practitioners of technology and its 
transfer;  (ii) academics;  (iii) related federal agenci es;  and (iv) networks/associations of firms.  The 
initiative was timely as increasing obligations were anticipated for developed countries to perform 
technology transfer towards developing countries and the LDCs in the:  (a) post-Copenhagen period 
in the field of climate change;  (b) global health  area as envisaged in the World Health Organization 
Guidelines;  and (c) fields and sectors like water,  food and urban development as new global crises 
continued to emerge.   
11. It was mentioned that the Lausanne Group had realized that an underutilized extraordinary 
competence and potential existed in Switzerland.  It could be realized at "low costs" to contribute to global technological advancement.  Small and Medium Enterprises (SMEs) that were specialized in 
developing technological solutions could be encourag ed to modify and transfer technology at low 
costs and yet allow for a margin of profit.  In or der for the technology to meet real entrepreneurial 
needs and initiatives in the LDCs, support was needed  to adjust and configure technology with the 
host-country environment.  The fundamental goa l of the Lausanne Group was to finalize an 
operational methodology to help governments fulfil th eir technology-transfer obligations which would 
be amplified in the near future in an effective and efficient way for the mutual benefits of the SMEs in 
the North as well as the local economies in the South.  
12. Members welcomed the briefing by Switzerland and expressed their desire to have a more 
detailed presentation on the Lausanne  Group Initiative at the future meetings of the Working Group.   
13. At the 32
nd Session of the Working Group, before taking up the regular agenda for the 
meeting, the Chairman briefed the Working Group on his informal consultations that he had had with 
Members in order to solicit views on ways/approaches that could help make progress in the work of 
the Working Group.  He informed Members that in  the invitation fax, dated 8 July 2010, he had 
requested interested delegations to meet him and provide guidance on how they wished to structure 
the work of the Working Group so as to achieve meaningful progress.  The EU, Japan, Canada, US, 
Brazil, China, India, Indonesia, Pakistan and th e Philippines, expressed interest and attended those 
one-on-one consultations.   
14. The informed the Members that a number of ideas were discussed in those consultations 
including the importance of South-South cooperation in technology transfer, importance of country/national presentations in highlighting expe rience with technology generation, innovation and 
its transfer, and the role of incentives for technology transfer-initiatives.  Some Members felt that the WT/WGTTT/W/17 
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  Working Group had done enough work in exploring the relationship between trade and transfer of 
technology and that it should now focus on the result-oriented part of the mandate i.e. the recommendations on possible steps that might be ta ken within the mandate of the WTO to increase 
flows of technology to developing countries.  Other Members felt that the work in the Working Group 
had not yet reached a point where they could have  a complete comprehension of the relationship 
between trade and transfer  of technology.  They insisted on the need for an organic link between the 
analysis part of the mandate a nd subsequent recommendations.   
15. In those consultations, the Chairman informed th e Working Group, that he had suggested that 
Members make national presentations to enrich th e discussions in the Working Group as it would be 
instrumental in enhancing  understanding of the lin kage between trade and transfer of technology.  
The Chairman stated that he hoped to continue with his informal c onsultations with Members with the 
objective of ensuring meaningful progress in the work of the Working Group.   
16. A presentation by UNCTAD based on its report:  "Technology  and Innovation Report 2010:   
Enhancing food security in Africa thro ugh science, technology and innovation"  generated a useful 
discussion.  The UNCTAD report focused on the cha llenges of improving agricultural performance in 
Africa and the role that technology transfer an d innovation had played in raising agricultural 
production and incomes of all farmers, including sma ll-scale farms.  In raising key issues relating to 
the development of African agriculture farming a nd post-harvesting techniques, the report argued that 
the main challenge facing the agriculture sector in Africa was to strengthen the innovation capabilities 
of African agricultural systems as a means of addressing poverty, improving food security and achieving broader economic growth and development.  The report also highlighted the need for 
building innovation capabilities, national food secu rity, transfer and diffusion of agricultural 
technology, the technology mixes for small-scale farming and the need to adapt existing technologies to the local environment in ways that would enhance productivity and lower costs.  In that context, the 
report also underscored the importa nce of knowledge through learning, research or experience and the 
need for acquiring certain technological capabilities so th at they could be applied in the production of 
products across sectors, including agriculture.   
17. While making some specific recommendations, the UNCTAD presentation, among others, 
underscored the need for strengthening the policy- making capacities, the importance of targeting 
agricultural investment, reinforcement of agricu ltural innovation systems, capacity building and 
building linkages between national, regional and inte rnational research as well as revitalizing funding 
for Research and Development (R&D).  In additi on, it pointed towards th e need for reinforcing 
international cooperation in the areas of  R&D, technology and innovation.   
18. In the discussion that ensued thereafter, Members found that in providing a specific regional 
and sectoral perspective, the UNCTAD presentation he lped to facilitate a better understanding of the 
significance of innovation and technology in addressi ng some of the challenges related to productivity 
and post-harvest issues in the agriculture sector.  Me mbers also felt that the presentation shed light on 
the central role of the state in creating an enabling environment as well as on the importance of 
adapting models to national and local needs.  In hi ghlighting various facets of the technology transfer 
process as a whole, the report was seen as an importa nt contribution to the discussions in the Working 
Group.  Some Members stressed on the need for ex ploring international c ooperation and multilateral 
solutions to technology transfer and invited UNCTAD to  examine that aspect in its future studies.   
19. In addition, Switzerland provided an update on the Lausanne Group Initiative on innovation 
and technology generation by the EPFL and the Swiss SMEs.  Switzerland stated that the Lausanne 
Group had set itself the objective of developing  a methodology and operational procedures to 
facilitate the exchange of technology between priv ate companies in the developed countries and their 
counterparts in the LDCs.  It had often been expe rienced that the SMEs in  the least-developed world 
found it difficult to find a foreign partner to provide the needed technology.  Consequently, one of the  WT/WGTTT/W/17 
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  main areas of work for the Lau sanne Group was to bring together the SMEs that needed technology 
with those Swiss SMEs that could provide the same .  It was also stated that the Group was also 
working on how to help both sides to overcome the ob stacles of the pre-commercial phase in order to 
be able to organize the cooperation as efficiently as possible.  In that context, the Lausanne Group 
perceived a very active role of specialized entiti es such as the business associations.  The Working 
Group was also informed that the Lausanne Gr oup had agreed, as a next step, to focus on the 
operationalization of the methodology and on the analys is and illustration of concrete cases in which 
the transfer process had functioned well.  Switzerland offered to keep the Work ing Group informed of 
future developments in the wo rk of the Lausanne Group.   
20. At the 33rd Session of the Working Group Members continued with their discussions on 
UNCTAD's presentations made at the previous me eting.  The discussion emphasized the importance 
of focusing on the full range of issues that a ffect agricultural development, from increasing 
agricultural productivity in the field to supporting good governance and policy reform in capitals.  
Some Members felt that it would be useful to l earn more about developing countries' strategies for 
improving their absorptive capacity, attracting, deve loping and disseminating technology.  They saw 
great value in exchanging information and sh aring experiences on innovation and technology 
development as lessons could be learnt from the real-life experiences.  Members felt that such an exercise would prove useful to help move forward the work in the Working Group.  It would also 
contribute to a better identification of the areas wher e trade plays a critical role in technology transfer, 
and would also help highlight the role technolog y has played in enhancing trade and ultimately 
impacting on growth and development.   
21. Members expressed their disappointment with th e OECD's inability to make a presentation at 
the meeting of the Working Group .  Highlighting the usefulness of past presentations by Members 
and international organizations  including UNCTAD, UNDP, the World Bank, and the FAO on the 
technology transfer work they have been undertak ing, Members noted that experience sharing on 
those issues would be very useful, and in fact essen tial, to the work in the Working Group.  Members 
felt the need to continue to have presentations  on national experiences with technology-transfer 
programmes, since such presentations were useful  in encouraging technology transfer.  Some 
Members repeated their earlie r request that those Members which had undergone rapid 
industrialization in the last few decades might be  asked to share their experiences.  They also 
cautioned that if the work of transfer of tec hnology was not taken seriously, the divide between 
technology haves and have-nots would further widen.  Accordingly, Members requested the Chair to 
continue encouraging Members and other internationa l organizations, such as the WIPO and others to 
share their experiences and work on innovation and technology with the Working Group.  Without a better understanding on what mechanisms and tools al ready existed, it would be difficult to envision 
how Members' understanding of the technology-transf er process and, therefore, the work in the 
Working group could proceed effectively.   
22. With respect to WIPO, it was stated that WIPO was proceeding with several proposals to 
improve information and coordina tion on technical assistance, including an "IP Technical Assistance 
Database" (IP-TAD) and an "IP Development Ma tchmaking Database" (IP-DMD) which could serve 
a technology transfer purpose.  Accordingly, Members agreed to invite WIPO to  share its work in the 
area of technology and its transfer at one of the future meetings of the Working Group.   
23. Some Members felt that since most of the Multilateral Environment Agreements had fairly 
detailed provisions on technology transfer, it coul d be educative to invite UNEP to share its 
experiences in this area with the Working Group.  One Member, however, sought additional 
clarification on what precisely Members had in mind with respect to the invitation to UNEP and the value additional of such a presentation.   WT/WGTTT/W/17 
Page 6  
 
  24. Members also requested the UNCTAD representa tive, present at the meeting, to consider 
sharing UNCTAD's work on the role of South-Sout h cooperation in technology transfer.  Some  
Members further requested UNCTAD to prepare a paper on policy guidelines for technology transfer 
and the kind of incentives provided by the developed countries to their firms to encourage technology 
transfer to developing countries and the LDCs.   
25. In providing an update on the Lausanne Group Initia tive,  Switzerland stated that the "Group" 
sought to identify best ways to overcome the mism atch between a private company's demand in LDCs 
and a private company's offer in developed countri es, like for example Switzerland.  In order to 
understand the mismatch and the needed remedies,  the Lausanne Group had initiated a ''pilot case 
study'' with a Tanzanian company.  In elaborating up on the details of the "pilot case study" on the use 
of waste wood from forestry operations, it was st ated that the Tanzanian firm was looking for 
appropriate technology to process waste wood.   Th e ''pilot case study'' would also demonstrate the 
importance of identifying potential issues related to  innovation and technology transfer in the LDCs 
and the developing countries as well as building inter-linkages and supporting the whole process of 
knowledge exchange and know-how through an appropriate funding and coaching mechanism.  The 
Working Group was informed that the results of th e "pilot case study" were expected to be ready in 
the spring of 2011 and that, at th at time, an update on its results could be provided to the Working 
Group.   
III. ANY POSSIBLE RECOMMENDATIONS ON THE STEPS THAT MIGHT BE 
TAKEN WITHIN THE MANDATE OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES 
26. During 2010, under the standing agenda item on possible recommendations that the Working 
Group could make in the future, Members contin ued their discussion of an earlier submission by 
India, Pakistan and the Philippines entitled ''Fac ilitating Access to Information on Appropriate 
Technology Sourcing''.   
27. At the 32
nd Session of the Working Group, while sup porting the submission by India, Pakistan 
and the Philippines, some Members emphasized the importance of access and dissemination of 
information on appropriate technologies as the corner stone of the transfer of technology process and 
its adaptation to suit national needs for the purposes of its effective app lication.  They stressed that the 
Working Group should intensify its work towards finalizing appropriate recommendations that would 
increase flows of technology to developing countri es.  That, in their view, could be a significant 
contribution to the Doha Development Agenda.  It was also felt that the promise of development 
through sharing and transferring the fruits of technol ogy, could only be materialized through sustained 
international cooperation and the participa tion of the public and private sectors.   
28. In addition, Members reiterated their earlier request that the WTO develop a web-page on 
technology, its transfer requests and on specific te chnology needs and/or technology offers, as well as 
links to intellectual property clearinghouses, etc.  It was pointed out that similar web-pages had 
already been launched in the WTO in the past year on Regional Trade Agreements and on the 
Enhanced Integrated Framework.  By doing so, the WTO could play an important role in promoting and disseminating information on technology transfer .  These Members also recalled that the Working 
Group had received, in 2003, contributions from other WTO bodies on their work pertaining to 
transfer of technology.  Given that it had now been seven years since that reporting, they felt that the 
Working Group should receive updates from those Comm ittees on their work on technology transfer.  
These Members also requested the Secretariat to prepare a compilation of all transfer of technology-
related provisions in the WTO Agreements and  also compile an analysis of the impact of technology 
transfer to LDCs of Members' fulfilment of their obligations under Article 66.2 of the TRIPS 
Agreement with a view to better unde rstanding the extent to which the transfer of technology to LDCs 
had actually contributed to an increase in their trade.    WT/WGTTT/W/17 
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  29. While cautioning against substituting the expe rtise other WTO bodies had built up over many 
years in the area of technology, some Members did not favour the proposal made on undertaking an impact assessment of technology-transfer activities under Article 66.2 of the TRIPS Agreement.  They 
also wanted more time to examine the proposal concerning an update from other WTO bodies on their work on technology transfer.  Those Members also re iterated their reservations about the creation of a 
WTO web-page on technology transfer on the groun ds that the establishment of a WTO web-portal on 
technology transfer would raise a host of legal a nd commercial issues and that such a website would 
be outside the core functions of the WTO as a "rule maker" on trade issues.   
30. At the 32
nd Session of the Working Group,  some de veloping country Members felt that while 
the Working Group had been focussing for a very long time on the relationship between trade and 
transfer of technology, it had yet to start looking at the issue of making possible recommendations that 
could improve flows of technology to developing  countries.  The other opposing view was that, 
although a lot of useful analytical work had b een done in the Working Group, it was far from 
complete and hence it would be premature to start looking at making any recommendations.  During 
the course of discussion, some Members underscore d the need for examining ways to improving 
international cooperation and findi ng multilateral solutions to problem s facing technology transfer.   
31. In addition, Members considered a draft co mpilation of provision relating to technology 
transfer in WTO Agreements that had been prepared  by the Secretariat at the request of Members.  
The Chairman was asked by the Working Group to request other WTO bodies to provide an update on the work done by those bodies on t echnology and its transfer since they last reported in 2002. 
32. At the 33
rd Session of the Working Group, the Chai rman reported to Members on the inputs 
received from other WTO bodies on their work on trade and transfer of technology.  With the 
exception of four WTO bodies, all other bodies had reported that they had not done any substantive 
work in relation to trade and transfer of technol ogy since their last reports in 2002.  Only the 
Committee on Trade and Environment, the Committee on Sanitary and Phytosanitary Measures, the 
Committee on TRIMS and the Council for TRIPS ha d reported that some work on the issue of 
technology and its transfer had been undertaken.  Most notably, the Council for TRIPS had reported 
on its continuous work on the ''Implementation of Article 66:2'' of the TRIPS Agreement.   
33. Commenting on the report by the Chairman, some Members said that the lack of appropriate 
attention by some WTO bodies to an important is sue like technology transfer ran counter to the 
imperatives of development.  It put an added res ponsibility on the shoulders of the Working Group to 
intensify its efforts in coming up with appropriate  recommendations to facilitate technology transfer 
to developing countries.  In addition, some Members also stated that the Secretariat's compilation on 
technology transfer provisions contained in WTO Ag reements highlighted that such provisions were 
spread out horizontally across WTO Agreements.  Ho wever, in their view, the focus of discussion in 
the WTO, in the context of technology transfer, had largely been on Article 66.2 of the Agreement on 
TRIPS.  Members felt that it woul d be interesting to understand how transfer of technology provisions 
were being implemented elsewhere in the WTO.  On Article 66.2 of the TRIPS Agreement, they 
believed that while it was an obligation on devel oped country Members to report to TRIPS Council on 
their efforts on transfer of technology, it would also be useful to undertake an impact analysis of such 
transfer of technology activities.  Accordingly,  those Members requested the developed country 
Members to present their impact assessment on the ex tent to which transfer of technology to LDCs 
had actually contributed the increase in LDC's trade.   WT/WGTTT/W/17 
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  34. Members also considered a compilation of provi sions relating to technology transfer in WTO 
Agreements that had been prepared by the Secretar iat at the request of Members.  The Working Group 
agreed that the Secretariat would issue the compilation as a JOB document.
3 
IV. FUTURE WORK 
35. Pursuant to the mandate contained in paragra ph 37 of the Doha Ministerial Declaration, and 
subsequent affirmation, in para graph 43, by Ministers in the Hong Kong Declaration, Members 
proceeded with the examination of  the relationship between trade and transfer of technology and also 
continued consideration of any possible recommenda tions on steps that might be taken within the 
mandate of the WTO to increase flows of technolog y to developing countries.  The discussions  
largely progressed on the basis of  contributions by various intergovernmental organizations and 
covered a number of issues.  Understandably, the anal ytical work undertaken thus far, contributed to 
enhancing Members' understanding of the complex nexus  between trade and transfer of technology.  
Nonetheless the work on this issue is far from comple te.  A lot still remains to be done.  In the coming 
months the work will continue on the basis of Memb ers' submissions, contributions by international 
organizations and sharing of national experien ces on innovation and technol ogy generation and its 
transfer with the objective of fulfilling the Ministerial mandate.   
 
 
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3 JOB/DEV/10.