. /.  RESTRICTED  
 WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/17 
1 November 2006 
 (06-5234) 
  
Working Group on Trade and Transfer of Technology 
Seventeenth Session  
 
 
NOTE ON THE MEETING OF 6 OCTOBER 2006 
 
Chairperson:  H.E. Mr. Manuel A. J. Teehankee (Philippines) 
 
 
A. ADOPTION OF THE AGENDA ........................................................................................................1  
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY ............1  
C. ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING 
COUNTRIES ............................................................................................................................... ...2 
D. OTHER BUSINESS ........................................................................................................................2  
 
  A. A
DOPTION OF THE AGENDA  
1. The agenda contained in Airgram WTO/AI R/2891 of 26 September 2006 was adopted.  
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
 2. Under this agenda item, the Working Group cont inued its consideration of the relationship 
between trade and transfer of technology.  One Member raised the issue of the possible linkage of 
Mode 4 in GATS with technology transfer and the bearing it might have on the transfer of certain 
types of technologies.  That Member stated that movement of natural persons under Mode 4 in GATS 
could play an important role in training, lear ning and acquisition of skills , technical know-how and 
expertise by the developing country workers.  However, other Members did not see the direct 
relationship between Mode 4 in GATS and the work  of the Working Group.  They also felt that 
further discussions, if any, on this issue could be facilitated on the basis of written submissions. 
3. The representative of UNCTAD briefed the Wo rking Group on their recent work on "Trends 
in Cross-Border Flows of Technology".  It wa s pointed out that UNCTAD had identified six 
indicators to assess cross-border technology flows:  (i) payment of royalties and licensing fees by the users 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 
Research & Development (R&D);  and (vi) the growth of industrial alliances.  The UNCTAD 
presentation observed that technology ownership a nd development was mostly concentrated in 
developed countries, and that only a limited number of developing countries with larger markets or 
those which had existing production and technologi cal capacity, were beneficiaries of technology 
flows.  Although the proportion of high-tech produ cts in global merchandise trade had increased in 
recent years, the participation of many developing countries in this growing area of trade has 
remained limited, partly due to lack of access to key tec hnologies.  Members found the UNCTAD 
presentation to be a useful input to the work of the Working Group.  WT/WGTTT/M/17 
Page 2  
 
   
C. A
NY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
4. 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, India, Pakistan and the Philippines intr oduced a room document elaborating upon some of 
the recommendations contained in an earlier subm ission tabled by them (WT/WGTTT/W/10).  The 
document provided written responses and clarificati ons to the questions that some Members had 
posed. 
5. On the mechanism to adopt voluntary guidelines,  the room document clarified that provisions 
related to technology transfer in the WTO agreem ents were mostly of a voluntary nature and, 
therefore, their operationalization was difficult whic h rendered them less be neficial to developing 
countries.  The Working Group needed to consider ways, including adoption of guidelines, to operationalize these provisions.  In that context, OECD guidelines for multinational enterprises, that 
essentially were also voluntary in nature, could provide a good example and a possible model to make 
progress on the issue.  With regard to the proposal on the bureaus of standard monitoring or regulating 
authorities, the room document argued that strengt hening of relevant national bureaus and building 
capability to evaluate the quality and authenticity  of technologically sophisticated products and 
services was imperative to combat counterfeiting a nd piracy.  National competition authorities also 
needed to be suitably geared towards promoting innovation through monitoring restrictive and 
anti-competitive practices in technology firms.  Th e room document also suggested that the WTO 
could establish a web page for Members to share and disseminate information on incentives for 
investment and technology transfer and on best practices in technology transfer.  Members thought 
that the room document was a positive contribution to advance the work of the Working Group and 
agreed to revert to the issues rais ed therein at the next meeting.  
6. Cuba also provided detailed responses to th e questions posed on their earlier submission.
1  
They stated that lack of effective provisions rela ting to technology transfer in the WTO Agreements 
had significant consequences for developing countries in  the area of trade.  On technical assistance, 
Cuba felt that requests for technical assistance shoul d also include requests for appropriate technology 
transfer.  That was one way of meeting the technol ogy needs that would enable developing countries 
to develop their conformity assessment procedures a nd meet the often stringent technical standards 
and sanitary and phytosanitary measures.  They oppo sed the view that early consultation with regard 
to the preparation and enforcement of new sta ndards could sometimes be counterproductive by 
arguing that consultations with Members must take place at the outset, when the standard is at the preparation stage and not once the standards have been enforced.  It was agreed to continue 
consideration of Cuba's submission at fu ture meetings of the Working Group.  
D. O
THER BUSINESS  
7. No matter was raised under "Other Business".  
8. The next formal meeting of the Working Group is scheduled to be held in November 2006. 
 
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1 WT/WGTTT/W/12.