WORLD TRADE  
ORGANIZATION  IP/C/W/497/Add.7 
3 December 2007 
 (07-5311) 
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 22 Octobe r 2007, 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.  It was circulated as an advance copy for the TRIPS Council meeting in 
October 2007. 
 
_______________  
  
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. 
 
I. TYPE OF INCENTIVES 
2. Technology transfer is interpreted broadly in  this report to include training, education and 
know-how
1.  Australia's transfer of technology to le ast developed countries (LDCs) occurs through 
export-related activity as a normal product of market  forces, through the facilitation of a strong 
intellectual property environment in LDCs, and thr ough incentives that form part of the Government's 
bilateral and regional devel opment assistance programme. 
 3. At the same time, the Australian Government  has in place programmes designed to promote 
innovation and competitiveness in the Australian econom y which in turn can contribute to increased 
transfers of technology in export markets including LDCs.  For example, technology transfer may 
occur through exports and outward or direct investme nt by Australian firms in other countries.  This 
transfer of technology may occur in joint vent ures between Australian firms and overseas companies 
or governments.  4. Australia recognises that technology transfer, economic 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 governance assistance to LDCs (the preliminary figure for 
2006-07 is approximately US$307.3 million
2) which includes programmes aimed at improving 
                                                      
 1  Definition used in previous reports from Australia. 
 2  Note that "$" elsewhere in this report refers to Australian dollars.  A$1=US$0.87 as at 
26 September 2007 IP/C/W/497/Add.7 
Page 2  
 
  economic and financial management, strengthening the rule of law and justice, increasing public 
sector effectiveness and developing civil society and human rights.  5. Australia considers that the education of LD C 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 an d know-how to which Australia has access.  
Consequently, a significant portion of Australia's as sistance is directed at providing education and 
training.  A detailed account of some Australian act ivities and funding is provided below, including a 
table showing the Australian aid programme's assist ance to least developed countries with a major 
technological transfer component during 2006-07. 
 
II. GOVERNMENT AGENCY MAKING THE INCENTIVES AVAILABLE 
6. This report focuses on information on activities that promote technology transfer carried out 
by the Australian Agency for Inte rnational Development (AusAID). 
 III. ELIGIBLE ENTERPRISES AND INSTITUTIONS PROVIDING INCENTIVES 
7. The vast majority of Australian devel opment assistance activities are implemented by 
organizations and individuals selected through a competitive tendering process.  Australian aid to LDCs has been untied since 2001 and has been untied to all countries since 2006, allowing non-Australian organizations to bid for contracts to supply goods and services under the aid programme.   
 IV. APPROPRIATE TECHNOLOGY 
8. For sustainable development, it is critical that technology 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 organisa tions to ensure harmonisation of resources and 
appropriately targeted assistance. 
 
V. MONITORING AND EVALUATION 
9. Monitoring and measuring the effectiveness a nd results of development assistance are key 
concerns for the Australian aid programme.  A range of mechanisms and experts are used to ensure 
effectiveness of monetary incentives including th e AusAID Audit Committee, High Level Advisory 
Groups, the Aid Advisory Council, the Committee fo r Development Co-operation, peer reviews and 
corporate reviews.  To ensure that Australia 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 
A. A
USAID:   BILATERAL PROGRAMMES  
10. Australia provided a pproximately A$352.2 million in deve lopment assistance to LDCs in 
2006 -07.  Many of these activities carry a technolog y transfer or investment component.  Examples 
of activities for which technology transfer or inv estment is a major compone nt or the primary aim 
have been included below. 
  IP/C/W/497/Add.7 
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  1. Solomon Islands – Economic Reform Programme 
11. Since 2004, the Regional Assistance Mission to Solomon Islands (RAMSI) has been 
supporting the Solomon Islands Government to de velop and implement econom ic reform through a 
specialised Economic Reform Unit based in the Mini stry of Finance and Treasury.  Working with 
local counterparts, advisers from Australia and New Zealand (including the Australian Treasury) have 
assisted the Solomon Islands Government to in troduce a new Foreign Investment Act and State 
Owned Enterprises Act; improve efficiency and equ ity in the tax system through a reduction in tax 
and duty exemptions; and facilitate incr eased competition in the aviation sector.  
 
2. Lao PDR – Integrated Framework 
12. Australia is funding an Integrated Framework Facilitator Specialist positi on in Laos to assist 
in the implementation of the Integrated Framewor k.  The Integrated Framework process aims to 
mainstream trade into national development pl ans such as the National Growth and Poverty 
Eradication Strategy, and to assist in the coordinate d delivery of trade-related technical assistance in 
response to needs identified by the Government of Lao PDR. 
 
3. Vanuatu – Governance for Growth 
13. Australia is supporting the Government of Vanuatu through the $33.2 million Governance for 
Growth initiative from 2007-2012 to improve the delivery  of government services in rural areas.  The 
initiative will help the Government of Vanuatu to im prove the quality of its budget to better reflect 
national priorities for service delivery and investme nt, and to use the budget process as a tool for 
policy implementation.  The initiative will also st rengthen the basis for performance assessment to 
provide a better sense of whether funding is being we ll-used by line ministries to deliver services and 
investment to the community.  B. R
EGIONAL AND GLOBAL PROGRAMMES  
14. In addition to bilateral assistance, the Austra lian aid programme provides LDCs with transfer 
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.   
1. ASEAN-Australian Development Cooperation Programme 
15. The ASEAN-Australian Development Coopera tion Programme (AADCP), with a budget of 
A$45 million (2000-08), has a programme stream th at includes: customs capacity building; legal 
infrastructure for e-commerce; assistance in pr ivate sector competitiveness and SME development; 
quality assurance systems for fruit, vegetables, fish  and fishery products; animal and plant health 
management and quarantine; and risk assessme nt in support of food safety measures. 
 2. Trade Analysis and Reform Project 
16. This initiative is a $6. 3 million, 3 year activity that aims to assist participating economies of 
the Mekong region (Cambodia, Lao PDR, Vietnam a nd Thailand) to meet the challenges of, and 
benefit from, global trade liberalisation and regional economic integration.  In particular, the activity 
aims to enhance awareness of WTO Agreements and provide technical and advisory assistance with 
WTO accession and implementation issues.  
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  3. World Organisation for Animal Health Project to Strengthen Veterinary Services to 
Combat Avian Influenza and Other Pr iority Diseases in South East Asia 
17. Australia partners with the World Organisati on for Animal Health (OIE) to support veterinary 
services in developing countries to meet internati onal standards on quality.  Australia is contributing 
up to A$3 million to combat avian influenza and other priority diseas es in South-East Asia through 
the provision of an international scientific advi sory and technical exchange programme for avian 
influenza and regional capacity building. 
 
4. South East Asia Foot and Mouth Disease Campaign 
18. This programme is implemen ted by OIE and involves the coordinated control of foot and 
mouth disease by eight ASEAN countries.  The long -term objective of the campaign is to facilitate 
and promote the international trade of animals and animal products by creating foot and mouth 
disease-free areas in the region.  This includes impr oving veterinary standards and adding value to the 
regional control programme. Australia has provide d nearly A$4 million for the programme since 
1996.  5. Asia Regional Sanitary and Phytosa nitary Capacity Building Programme 
19. Australia is providing A$3.9 million towa rds this programme, implemented by the 
Department of Agriculture, Fisheries and Forestry , to enhance the capacity of ASEAN countries to 
meet international SPS standards consistent with the WTO Agreement on the Application of Sanitary 
and Phytosanitary (SPS) Measures.   6. Pacific Regional Trade Facilitation Programme 
20. Australia is providing A$2.5 million over five  years to 2009 to support capacity building and 
institutional strengthening thr ough the Regional Trade Facilitation Programme, with the aim of 
improving the region's ability to operate in the glob al trading environment.  The programme includes 
a quarantine component delivered by the Secretaria t of the Pacific Community, a customs component 
delivered by the Oceania Customs Organization and an Integrated Food Standards Project delivered 
by the World Health Organization and the UN's Food and Agriculture Organization. 
 
7. Pacific Islands Climate Predictions Project  
21. Economic and social activities in Pacific island countries (PICs) rely heavily on the natural 
environment.  Effective weather services and th e capacity to issue longer-term client-targeted 
predictions will therefore be a great benefit to PIC economies.  This initiative will strengthen PIC 
capacity in climate prediction.  It aims to expand and enhance the prudent use of climate predictions 
by PICs in both national meteorological services  and in client departments, including health, 
agriculture and water utilities.  Australian input to th is project is technical, including tailored climate 
prediction software and training in its use.  This A$3 million phase (2007 - 2009) of the project, 
builds upon the achievements of the initial phase (A $2.3 million;  2003-2006) and expands the project 
to include Papua New Guinea.  
8. Australia Pacific Technical College 
22. This project works in partnership with indus try and regional governments in the Pacific, and 
aims to increase the number of skilled Pacific Is land graduates as well as to improve the quality of 
their training to meet Australian standards of vocati onal and technical education.  The intention is for 
Pacific Island economies to benefit from larger, be tter skilled workforces to support economic growth, 
and for graduates to benefit from improved employment opportunities at home and in an increasingly  IP/C/W/497/Add.7 
 Page 5 
 
 
  international labour market.  Initial funding of A $149.5 million will provide for the establishment and 
operation of the college for the first four year s between 2007 and 2011.  Tr aining will be undertaken 
in Fiji, PNG, Samoa and Vanuatu.  It is expected to graduate around 3,000 students in the first four 
years in the areas of hospitality and tourism; au tomotive, construction, electrical and manufacturing 
trades; and health and community services.  
 
9. WTO Global Trust Fund 
23. Australia contributes A$500,000 annually to the WTO Global Trust Fund, with total 
contributions to date ove r A$2.46 million.  The Trust Fund provides trade-related technical assistance 
to developing country Members of the WTO to pa rticipate in the Doha Round of multilateral trade 
negotiations.   
 
10. Australian Scholarships 
24. Australian Scholarships are awards for long-te rm study in Australia and seek to promote 
education cooperation and development.  The pr ogramme, which comprises Australian Development 
Scholarships, Australian Leadership Awards, and Endeavour Scholarships, provides appropriate and 
cost-effective training to developing country nationals to equip them with qualifications and skills that 
will assist development in their home country.  From 2006, Australian Scholarships will provide 
approximately A$1.4 billion over five years. LDCs targeted under the Australian Scholarships 
programme include: Afghanistan, Bangladesh, B hutan, Cambodia, Kiribati, Lao PDR, Lesotho, 
Malawi, Maldives, Mozambique, Nepal, Samoa, So lomon Islands, Tanzania, Timor-Leste, Tuvalu, 
Uganda, Vanuatu and Zambia.  
 
11. Australian Centre for Internationa l Agricultural Research (ACIAR) 
25. The Australian Centre for Internati onal Agricultural Research (ACIAR) provided 
A$23.9 million in 2006-07 for joint technical and policy research projects with developing countries, 
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; and invasive pests and diseases.   IP/C/W/497/Add.7 
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VII. AUSTRALIA'S AID PROGRAMME:  ASSISTANCE TO LEAST DEVELOPED 
COUNTRIES WITH A MAJOR TECHNOLOGICAL TRANSFER COMPONENT 2006-2007 
 
 (Preliminary figures for AusAID's bilateral & regional programmes only) 
   
   
 Least Developed Country A$ 
 Afghanistan 20,257,246 
 Asia Economic & Transboundary 30,451,875 
 Australia Pacific Technical College 7,071,947 
 Bangladesh 21,331,722 
 Bhutan 1,096,418 
 Burma (Myanmar) 2,630,760 
 Cambodia 25,603,089 
 East Timor 32,320,814 
 Kiribati 6,525,028 
 Laos PDR 12,577,931 
 Maldives 2,799,665 
 Nepal 3,437,106 
 Pacific Regional 704,721 
 Pacific Regional Governance 129,365 
 Regional South Asia 11,441,663 
 Regional & Other Africa 33,581,731 
 Samoa 12,900,572 
 Solomon Islands 101,828,832 
 Tuvalu 3,333,792 
 Vanuatu 22,141,791 
   
 Total 352,166,068 
   
 
Source:  AusAID Financial Reporting System 
 
 
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