WORLD TRADE  
ORGANIZATION   
IP/C/W/558/Add.2 
14 October 2011 
 (11-5055) 
Council for Trade-Related Aspects of  
Intellectual Property Rights Original:   English 
 
 
 
REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 
OF THE TRIPS AGREEMENT 
 
NEW ZEALAND 
 
Addendum 
  
 The following communication, dated 29 September 2011, is being circulated at the request of 
the delegation of New Zealand. 
 
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 1. This submission provides a report on New Zeal and's activities in pursuit of commitments 
under Article 66.2 of the TRIPS Agreement concer ning technology transfer to least developed 
countries (LDCs) for the period July 201 0 - June 2011 and actions planned. 
2. Article 66.2 of the TRIPS Agreement provides 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 c ountry Members in order to enable them to create 
a sound and viable technological base".  
3. Technology transfer is interpreted in this re port broadly to include training, education and 
"know-how", along with any capital component.  We see four key modes of technology transfer:  
(i) physical objects or equipment;  (ii) skills and human aspects of t echnology management and 
learning;  (iii) designs and blueprints whic h constitute the document-embodied knowledge on 
information and technology;  and (iv) production arrangement linkages within which technology is 
operated. 
I. OVERVIEW OF INCENTIVES, TYPES OF TECHNOLOGY AND THE MODES OF 
TECHNOLOGY TRANSFER 
4. New Zealand's efforts to encourage technology tr ansfer to LDCs occur through a variety of 
channels or modes: promoting a broad economic environment that is  conducive to the development of 
New Zealand enterprises and institutions and enables th em to transfer technology abroad; bilateral and 
regional development assistance programmes; encouraging trade in goods and services; and 
facilitating a strong intellectual property environment.  However, it should be noted that New Zealand 
recognises that the most relevant and cost-effective technologies may come from other countries (consistent with untied aid).   IP/C/W/558/Add.2 
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  5. In supporting sustainable economic development, including through the transfer of 
technology, New Zealand has increas ed the focus of its Aid Programme  on agriculture, fisheries, and 
tourism.  These are key productive sectors for New Zeal and partners' future growth prospects, while 
infrastructure and energy are important enabling factors for growth. 
6. A key channel for promoting technology transf er from New Zealand to LDCs is through the 
New Zealand Aid Programme, managed by the Mini stry of Foreign Affairs and Trade (MFAT).  
MFAT views technology transfer as an implic it element in achieving its overall objective of 
supporting sustainable development in developing c ountries in order to reduce poverty; so much so 
that it often cannot be distinguished from other elements of programmes. 
7. Due to New Zealand's history, culture and geographic location, the primary geographical 
focus of the New Zealand Aid Programme is the P acific, along with key partners in Asia.  The 
particular LDCs with which Ne w Zealand has bilateral programmes are: Samoa, Solomon Islands, 
Vanuatu, Cambodia, Lao PDR and Afghanistan (all of whom are LDC WTO Members or Observers), 
and Kiribati, Tuvalu, and Timor Leste (non-WTO Memb er activities are not included in this report).   
8. The New Zealand Aid Programme has a core fo cus on sustainable economic development.  
This includes encouraging policies that support grow th and investment so that businesses have access 
to the critical infrastructure, finance and markets th ey need to succeed.  Direct, practical support for 
businesses, for example through mentoring and skills trai ning, is also important to develop expertise.   
9. While not necessarily captured in activities feat ured in this 2010/11 Report, MFAT through 
the New Zealand Aid Programme is supporting infrast ructure development in the areas of renewable 
energy, transport (e.g. roads and ports) and water supply, which is likely to involve elements of 
technology transfer (e.g. in technology to optimis e the management of distributed generation in 
electricity networks).  
10. MFAT is also developing a coherent focused  programme to support Pacific Island countries 
to develop trade opportunities, and systems and r esources to take advantage of these opportunities. 
11. This report identifies some relevant activities with key LDC partners through bilateral or 
regional mechanisms.  Any relevant activities of mu ltilateral agencies that New Zealand provides core 
funding to are not reflected in this report.  (Note that all figures quoted are in New Zealand dollars.) 
II. OFFICAL DEVELOPMENT ASSISTANCE  (ODA) ACTIVITIES PROVIDING 
TECHNOLOGY TRANSFER TO LDCS  
12. In 2009 the New Zealand Aid Programme ame nded the criteria of an ODA contestable fund 
that funds state sector agencies to undertake activ ities to promote developm ent in the Pacific.  
Eligibility now includes Crown Research Institutes, providing an additional mechanism to promote 
the transfer of scientific research and technology to LDCs.   
13. Activities funded from this contestable fund, amounting to  NZ$544,993 in 2010/11, provide 
for technology transfer (including training) from New Zealand government departments to 
New Zealand's LDC partners in the Pacific.  Current activities are: 
 Provision of training (on early identification of pest and disease risk organisms) and 
equipment (microscopes) to Pacific quaran tine services to enable them to implement 
biosecurity and quarantine measures and gain market access;  
  IP/C/W/558/Add.2 
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   Provision of a database and re levant training to enable five Pacific Island countries to 
manage information on people travelling to New Zealand for seasonal work, or seeking to 
do so. 
 
14. The New Zealand Aid Programme's bilateral and regional programmes provide technology 
transfer through training, skill development, and technology infrastructure.  The following sections 
provide further background on selected bilateral and regional programmes as examples of technology 
transfer to least developed countries.  The inform ation provided is based on the reporting criteria 
agreed by the TRIPS Council in February  2003. 
A. EXAMPLES OF BILATERAL PROGRAMMES WITH LDC S  
15. As the New Zealand Aid Programme evolves ove r time, different elements of technology 
transfer will feature.  The following are some current examples from bila teral programmes with a 
number of LDC WTO Member and Observer Countries.    
1. Samoa 
16. The New Zealand Aid Programme is supporting a major Health Sector Programme which 
provides funding for Samoa to invest in health e quipment, specialist training, technical assistance and 
health information systems technology. New Zeala nd's contribution to this multi-donor programme in 
2010/11 was $NZ2.0 million. 
17. New Zealand support of $NZ300,000 in 2010/11 went towards Samoa's Private Sector 
Support Facility (PSSF). The PSSF supports private sector operators to access specific technical advice to strengthen production or marketing pro cesses. For instance seven businesses have attained 
relevant ISO certification and others have recei ved Hazard Analysis and Critical Control Points 
training. 
18. New Zealand supports Samoa's programme of In-Country Training (ICT) totalling 
$NZ 230,000 in 2010/11. ICT allows Samoan orga nisations to identify training opportunities and 
access international standard trainers to deliver courses. Many courses deal with specific technical 
issues. NZ support for Short Term Training Awa rds (STTA) in New Zealand ($NZ330,000 in 
2010/11) also provide an avenue for highly specialised training,  
19. Finally, the New Zealand Aid Programme supports  a range of initiatives in Samoa to foster 
institutional linkages between the two countries which involve technical or managerial skills transfer. 
Examples include programmes between Counties-Ma nukau District Health Board and the Samoan 
National Health Service; NZ Inland Revenue a nd the Samoan Ministry of Finance; and NZ 
Biosecurity working with the Samoan Mi nistry of Agriculture and Forestry. 
2. Solomon Islands  
20. In 2004/05 New Zealand responded to a request  from the Solomon Islands Government and 
initiated a contract for technology transfer to provi de the Ministry of Education with an Education 
Information System.  Over time, the initiative has expanded to include development of associated databases for divisions of the Ministry for managing th e teacher payroll and tertiary scholarships.  As 
new features are introduced, training is provided to in-house trainers and new training resources are 
developed to facilitate ongoing staff training.  In 2010/11 $NZ175,000 was expended.   
21. The New Zealand Aid Programme has also suppor ted the modernisation of the information 
management systems of the Solomon Islands Minist ry of Fisheries and Marine Resources (MFMR). 
The programme resulted in the establishment of a working IT system enabling networking, data IP/C/W/558/Add.2 
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  processing and more reliability in the licensing process.   Databases were also developed for recording 
key information (e.g. receipts, licenses and export data ).  Information is now integrated into regional 
databases, and licence information is held on an au tomate webpage for regional organisations and 
enforcement agencies.  In 2010/11 $NZ1.0 million was expended on work with the Solomon Islands 
Ministry of Fisheries and Marine Resources as part of the new Mekem Strong Solomon Islands 
Fisheries Programme (MSSIF).  Broadly MSSIF aims to build the capacity of MFMR to coordinate 
and lead sustainable development and management  of fisheries resources, and the capacity of 
stakeholders to participate in sector development.   
22. The New Zealand Aid Programme also supports the institutional development of the Solomon 
Islands Inland Revenue Division.  The programme has supported improvements to the organisation's 
Revenue Management System (RMS) and a website  and intranet.  Additional operational processes 
have been integrated into RMS, including assessment  of provisional tax, monitoring of outstanding 
returns and wider reporting functions. In 2010/11 $NZ2.1 million was expended on work with the 
Solomon Islands Inland Revenue Division    
3. Vanuatu  
23. New Zealand recently completed a $NZ1.4 million project that helped Vanuatu meet the new 
International Civil Aviation Organisation requirement  for all new passports issued after April 2010 to 
be machine-readable.  This has included assisti ng Vanuatu to develop a new passport processing 
system and custom-made database, and building a new secure passport-processing facility.  The 
project is, amongst several others, enabling Vanuatu to continue its active participation in the RSE 
scheme.  
24. As part of New Zealand's involvement in  strengthening the Vanuatu Customary Land 
Tribunal, $NZ4.1 million has been allocated to developing Vanuatu's land information management 
systems. Activities include updating current electronic systems for the management of survey information, conversion of record maps and survey plans to digital format and education and training 
for Department of Lands staff.  
25. New Zealand and the Millennium Challenge Co rporation recently completed a $NZ14 million 
project building roads around Efate Island and on Sa nto Island.  167 ni-Vanuatu workers gained 
construction skills as a result of being employed on the roading project. 
B. E
XAMPLES FROM REGIONAL APPROACHES  
26. New Zealand provides LDCs with transfers of technology and assistance to encourage 
investment through various regional assistance progra mmes.  In some cases it is difficult to separate 
expenditure specifically provided to LDC Members,  although it is clear that LDC Members within 
these regions benefit from these programmes. 
1. Pacific Economic and Trade-related Activities 
27. Sound economic management and appropriate policies (eg ICT regulation) are critical to 
encourage technology transfer, trade and invest ment.  The New Zealand Aid Programme provides 
funding to various regional organisations that pr ovide economic advice, capacity building, or support 
the development of trade or investment: 
 the Private Enterprise Partnership helps d esign and deliver business support to promote a 
business enabling environment for SMEs ($NZ 760,000 per annum). This programme will 
conclude in September 2011, but discussions are ongoing about a possible extension; 
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   the Foreign Investment Advisory Service pr ovides policy advice to governments on creating 
an environment friendly to foreign and domestic direct investment and the private sector. New Zealand has contributed approximately  US$1.05 million between FY 2008-2011;  
 
 The Pacific Islands Financial Technical Assi stance Centre (PFTAC) supports Pacific Island 
Countries to improve economic management through the provision of technical advice and 
practical support in public financial manageme nt, banking regulation, tax administration, 
macroeconomic management and National Accounts, and in coordinating donor efforts in 
these areas.  New Zealand has recently committed $NZ8.9 million for the next 5 year cycle of 
PFTAC ($NZ1.78 million per annum); 
 
 The Pacific Islands Trade & Invest (formally Pacific Islands Trade and Investment 
Commission) office in Auckland aims to enhan ce trade, investment and tourism opportunities 
for Pacific Island businesses.   In 2010/11 NZ contributed $NZ890,000 to the operation of 
PITI.   
 28. The New Zealand Aid Programme has funded th e installation of a New Zealand-designed 
customs database (PC Trade) in a number of Pacifi c Island Countries, including several LDCs.  We 
also fund helpdesk services (provided by Statistics New Zealand) to enable countries to effectively 
utilise this technology.  New Zealand has exte nded the funding to Statistics New Zealand to 
30 June 2014 for helpdesk services, as well as additional funding for software replacement.  
2. Pacific Environmental Activities 
29. The New Zealand Aid Programme provides financia l support to the Secretariat of the Pacific 
Regional Environment Programme (SPREP) ($NZ1. 425 million in 2010/11).  This agency in 
turn provides technical assistance to Pacific Count ries and Territories in the areas of biodiversity and 
ecosystem management, climate change, waste mana gement and pollution control, and environmental 
monitoring and governance, and accordingly promotes the transfer of knowledge into the region.   
30. The New Zealand Aid Programme also provides support to invasive species management in 
the Pacific through a partnership with the Univer sity of Auckland ($NZ0.35 million in 2010/2011) 
and to regional meteorological services through th e Island Climate Update project ($NZ0.22 million 
over 2010/2012).  Both of these activities have a str ong focus on technology transfer to the Pacific 
region.  
3. New Zealand Scholarships  
31. The New Zealand Aid Programme provides scholar ships to citizens of targeted developing 
countries to undertake vocational training or tertiary  level study in New Zealand or in the Pacific 
region.  During 2010/11 approximately 750 students from developing countries were studying in New 
Zealand on New Zealand Aid Programme funded schol arships, with funding totalling approximately 
$NZ30,500,000.  A total of approximately $NZ9.7  million was allocated for scholarships for students 
from Pacific Island LDCs in 2010/11. 
32. The scholarships enhance the skills, training and kno wledge of the recipients so that they can 
assist in the social and economic development of their home countries.  Scholarships are offered only 
for training and qualifications in subjects and skil ls which are relevant to the identified human 
resource development needs and priorities of each country. IP/C/W/558/Add.2 
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  III. OTHER NEW ZEALAND PROGRAMMES WITH A TECHNOLOGY TRANSFER 
COMPONENT   
A. I
NTELLECTUAL PROPERTY  
33. The Intellectual Property Office of New Zealand (IPONZ) provides ongoing technical 
assistance, on request, to help developing and l east developed countries on issues relating to the 
registration of intellectual property rights, incl uding plant variety rights (see New Zealand's report 
Technical Cooperation Activities:  Information from Members circulated as IP/C/W/560/Add.2).   
B. RECOGNISED SEASONAL EMPLOYER SCHEME (RSE) 
34. In April 2007 the Recognised Seasonal Employ er (RSE) scheme came into effect, enabling 
employers in the horticulture and viticulture industr ies to recruit seasonal workers from offshore, with 
a preference for the Pacific.  The purpose of the sch eme is to provide New Zealand employers with a 
reliable source of seasonal labour and to provide Pacific workers with income and employment 
opportunities.  Since 2007, more than 23,000 RSE seasonal labourers have visited New Zealand to 
take up employment opportunities in horticulture and viticulture. 
35. While workers are in New Zealand they will lear n new skills and be exposed to new ways of 
doing things, which they take home with them at the end of their contract.  All of the LDCs in the 
Pacific (Kiribati, Samoa, Solomon Islands, Tuvalu  and Vanuatu) have had workers in New Zealand 
during the first four seasons, as has Tonga.   
36. The New Zealand Aid Programme provides signi ficant financial support to facilitate the 
scheme, including: 
 A two year pilot training programme to train 580 RSE workers in literacy, numeracy and 
financial literacy will be completed by the end of September 2011.  This  will be expanded this 
year and extended for a further three years.   
 
 A Department of Labour technical assistance programme for participating RSE Pacific 
governments (Kiribati, Samoa, Solomon Islands , Tonga, Tuvalu and Vanuatu) to ensure the 
smooth running of the scheme.  This assistance will be scaled up and extended for five years.  
 
37. Some RSE employers have also indicated an inte rest in possible investment and joint venture 
opportunities in the Pacific Islands.  An initiativ e linking RSE and agribusiness support and training, 
tapping into the desire of RSE employers to "giv e back" to RSE workers and communities, is also 
being discussed.  
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