WORLD TRADE  
ORGANIZATION  IP/C/W/497/Add.3 
3 December 2007 
 (07-5293) 
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 11 October 2007, from the Delegation of the  New Zealand is being circulated pursuant to pa ragraph 1 of the Decisi on on Implementation of 
Article 66.2 of the TRIPS Agreement.  It was circ ulated as an advance copy for the TRIPS Council 
meeting in October 2007. 
 
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1. This submission provides an update report on New Zealand's activities in pursuit of 
commitments under Article 66.2 of the TRIPS Agreem ent concerning technology transfer to least 
developed countries (LDCs) for the period July 2006 - June 2007. 
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.  Using the United Nations definition, New Zealand sees four key modes of technology transfer:  (i) phy sical objects or equipment;  (ii) skills and human 
aspects of technology management and learning;  ( iii) designs and blueprints which 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:  through b ilateral and regional de velopment assistance programmes, through 
encouraging trade in goods and services and th rough facilitating a strong intellectual property 
environment. 
5. The main vehicle for the channelling of New Zealand's technology transfer to LDCs is 
through the New Zealand Agency for Interna tional Development (NZAID).  NZAID views 
technology transfer as an implicit element in achie ving its overall objective of reducing poverty.  Due 
to New Zealand's history, culture and geographi cal location, most of the relevant programmes IP/C/W/497/Add.3 
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  implementing Article 66.2 focus upon LDCs in New Zealand's neighbouring Asia-Pacific region.  
This report identifies relevant regional and bilatera l activities.  Any relevant activities of multilateral 
agencies that New Zealand provides core funding to are not reflected in this report. 
II. ODA  ACTIVITIES PROVIDING TECHN OLOGY TRANSFER TO LDCS  
6. NZAID does not provide any direct incentives to New Zealand organisations to promote 
technology transfer to LDCs.  In 2006/07, the Ne w Zealand Ministry of Research, Science and 
Technology (MoRST) began a scoping study on th e input New Zealand science can have towards 
Pacific development objectives.  The project is an alysing current New Zealand science input towards 
the development objectives of Pacific Countries and Territories, and scope the potential for further 
contributions, including how MoRST can best suppor t New Zealand science to contribute towards 
development outcomes in the region.  The stud y is supported through NZAID’s ODA contestable 
fund for government agencies ($NZ130,000 in 2006/07). 
7. In addition, a number of other activities were funded from this contestable fund enabling New 
Zealand government departments to undertake activi ties that support technology transfer (including 
training) in the Pacific.  This amounted to $NZ950,000 in 2006/07, and included the following activities: 
• Programmes to strengthen the ability of peopl e to analyse and monitor water quality, 
and strengthen public health risk management techniques; 
• Support for waste treatment schemes and training on waste management and 
recycling; 
• A scoping study of Customs electronic systems/automation in the Pacific ; 
• Capacity building for improved biocontrol of food crop pests; and 
• Small amounts of funding for an ICT Regi onal Development programme to enable 
Pacific Island countries to capture the benefits of modern technology and integrate communications capability. 
8. NZAID’s bilateral and regional programmes pr ovide technology transfer through training, 
skill development, and technology infrastructure.  This section provides further background on a 
selected number of the bilateral and regional programmes as examples of technology transfer to least developed countries.  The figures quoted are for the year to June 2007.  The information provided is based on the reporting criteria agreed by the TRIPS Council in February 2003. 
A. NZAID:
  REGIONAL  APPROACHES   
9. 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 LDCs, although it is clear that LDCs within these regions benefit 
from these programmes. 
1. Pacific Economic and Trade-related Activities 
10. Sound economic management and appropriate policies (e.g. ICT regulation) are critical to 
encourage technology transfer, trade and investment.  NZAID provides funding to various regional 
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   organisations that provide economic  advice, capacity building, or support the development of trade or 
investment: 
• the Private Enterprise Partnership helps design and deliver business support to, and 
promote a business enabling environment for, SMEs ($NZ760,000) 
• the Foreign Investment Advisory Servi ce provides policy advice to governments on 
creating an environment friendly to forei gn and domestic direct investment and the 
private sector ($NZ839,000) 
• the Pacific Financial Technical Assistance Ce ntre assist countries to have the skills 
and institutional capacity to effectively mana ge their economies (for example, helping 
the Solomon Islands to modernise their tax and customs divisions) ($NZ336,000) 
• the Pacific Islands Trade and Investment  Commission office in Auckland aims to 
enhance trade, investment and touris m opportunities for Pacific Island businesses 
($NZ490,000) 
 
11. NZAID is also funding a Regional Trade Facilita tion Project to assist Forum Island Countries 
in the areas of sanitary and phytosanitary me asures, customs procedures, and standards and 
conformance ($NZ1million over three years). 
12. NZAID has funded the installation of a New Ze aland-designed customs database (PC Trade) 
in a number of Pacific Island Countries, including several LDCs.  We also fund helpdesk services 
(provided by Statistics New Zealand) to enable countries to effectively utilise this technology. 
2. Pacific Environmental Activities 
13. NZAID annually provides financial support to the Secretariat of the Pacific Regional 
Environment Programme (SPREP) and South Pacific Applied Geoscience Commission (SOPAC) ($NZ1.8m and $NZ1.7m respectively).  These agencies in turn provide technical assistance to Pacific 
Countries and Territories in the areas of biodiversit y management, climate change adaptation, land 
management and ocean resource use, water and san itation, and hazard and disaster management, thus 
facilitating the transfer of knowledge into the re gion.  $NZ400,000 was also provided to support 
transfer of specific knowledge on the management of  pests.  Support through the New Zealand Civil 
Defence is also helping to build up management systems in the Pacific for disaster management, including monitoring of risks. 
3. Greater Mekong Subregion Trade and Development Programme 
14. In 2006/07 this programme amounted to $NZ1.6milli on, with the aim of assisting developing 
countries to harness international trade for developm ent.  This is achieved by building partners’ 
capabilities at the government level to legislate, regu late and implement, and at the business level in 
terms of production techniques and business skills, incl uding elements of technology transfer.  The 
projects involve the LDCs including Cambodia, Lao PDR and Myanmar (Viet Nam is also a 
participant in some activities).  In  2006/07 the programme included:  
• Building the legislative and regulatory capabilities of governments in phytosanitary matters as 
well as building capacity to ensure effec tive pest surveillance and management and 
phytosanitary inspections; 
 
• improving government capabilities in food safety/quality; 
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  • building capacity of government in metrology (consistent weights and measures) to develop 
legislation and regulation and provide world-class inspection and testing, including through 
provision of technical hardware/e quipment to assist in this area. 
 
4. Africa:  Basic Education  
15. New Zealand’s development assistance to Africa is  concentrated in the south and east of the 
continent, and focuses on basic education, includ ing non-formal training, governance initiatives and 
projects that help prevent and mitigate the imp act of HIV/AIDs.  Expenditure for the Africa 
programme in 2006/07 was $NZ5.2 million whic h includes targeted programmes under a grant 
assistance system to Mozambique, Tanzania, Zamb ia, (along with the non-LDCs Zimbabwe, Kenya 
and South Africa).  NZAID also provides assistance  to African LDCs through multilateral agencies, 
the Humanitarian Action Fund (HAF), and through New Zealand NGOs via the KOHA-PICD 
(Partnerships for International Community Development) fund.  
B. EXAMPLES
 OF NZAID  BILATERAL  PROGRAMMES 
16. As NZAID’s programmes evolve over time, diffe rent elements of technology transfer will 
feature.  The following are some current ex amples from NZAID’s bilateral programmes.    
1. Kiribati:  Marine Training Centre (MTC) 
17. Kiribati is an independent Micronesian country cons isting of 33 atolls and reef islands.  It is 
one of the poorest countries in the Pacific, and very  dependent on income from fishing – both in terms 
of the sale of fishing licences and from remittances from  mariners at work on foreign owned vessels.   
The primary emphasis of the NZAID Kiribati programme is basic education, human resource development, public sector capacity building and ur ban development.  In the year to June 2007 
New Zealand’s bilateral assistance to Kiribati amount ed to $NZ3.3million, with a strong emphasis on 
education and training.  This included a range of scholarships ($NZ1.8 million) and training activities 
both within Kiribati and overseas.  
18. An example of NZAID’s assistance is New Zealand's support to the Kiribati Marine Training 
Centre (MTC), which is intended to maintain the competitiveness of Kiribati’s seamen in the maritime 
labour market.  Funding to MTC was $NZ210,000 in the year to June 2007, along with a further 
$NZ105,000 to provide short-term training at the New Zealand Maritime School.  
2. Tuvalu:  Education Programmes 
19. In Tuvalu, a small constitutional monarchy of 10,000 people spread over nine low-lying coral 
atolls, New Zealand’s ODA programme strategy is focused on supporting ec onomic development and 
reform; promoting self-reliant local developm ent on the outer islands; and human resource 
development.  In 2006/07, New Zealand provided $NZ860,000 to Tuvalu in bilateral funding for 
various education activities (additional assistance was provided through NZAID’s regional programmes).  This included:  
• Scholarships to study in NZ and in the region, e. g. at the University of the South Pacific and 
Fiji School of Medicine, to transfer knowledge  and expertise to further the social and 
economic development of Tuvalu;  and 
 
• short courses and training attachments in New Zealand and in Fiji to improve the technical 
and vocational skill base in Tuvalu. 
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  3. Vanuatu:  Education Information Management 
20. In 2006/07 NZAID began a two-year programme with the Government of Vanuatu to develop 
an Education Information Management System.  The system, when fully functional, will provide 
essential management information for planning, m onitoring and evaluation for the Ministry of 
Education.  Funding of $NZ470,000 was provide d in 2006/07, with good progress being made.  
III. OTHER PROGRAMMES WITH A TECHNOLOGY TRANSFER COMPONENT:  
INTELLECTUAL PROPERTY 
21. New Zealand has been actively involved in th e development of the South Pacific Forum 
Regional Framework on Intellectual Property.  Ne w Zealand has provided technical assistance and 
advisors in developing national, regional and international rules and legislation to protect the 
intellectual property rights of indigenous pe oples.  This has led to the creation of a sui generis  system 
to protect traditional knowledge a nd expressions of culture that can be adopted by South Pacific 
nations, many of which are LDCs. 
22. The Intellectual Property Office of New Zealand (IPONZ) provides ongoing technical 
assistance, on request, to help developing and LDCs on issues relating to the registration of 
intellectual property rights, including plant variety rights.  Some specific examples include technical 
training and seminars on plant variety right protec tion and hosting the Asia-Pacific IP Office Forum, 
an opportunity for economies from th e Asia-Pacific region to share experiences and gain knowledge 
in relation to the running of their intellectual property offices. 
 
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