RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/11 
9 June 2005 
 
 (05-2373) 
Working Group on Trade and Transfer of Technology 
Eleventh Session  
 
 
 
NOTE ON THE MEETING OF 11 APRIL 2005 
 
Chairpersons:  H.E. Mr. Chitsaka Chip aziwa (Zimbabwe) for items A and B  
H.E. Mr. Manuel A.J. Teehankee (Philippines) for items C to E   
 
 
A. ADOPTION OF THE AGENDA ........................................................................................................1  
B. ELECTION OF THE CHAIRPERSON ................................................................................................1  
C. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY ............1  
D. ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING 
COUNTRIES ............................................................................................................................... ...2 
E. OTHER BUSINESS ........................................................................................................................3  
 
 
A. ADOPTION OF THE AGENDA  
1. The agenda was contained in Airgram WTO/AIR/2522 of 28 February 2005 and its 
Corrigendum of 10 March 2005.  The Chairman  informed Members that under Other Business 
UNCTAD would introduce a ''Case Study of the Electr onics Industry in Thailand''.  Additionally, the 
Chair said that he too would like to raise a matter concerning a communication received from the Association of International Network for Small and Medium Enterprises.  
2. The agenda was adopted as amended. 
B. E
LECTION OF THE CHAIRPERSON  
3. On the basis of consultations held by the Chairman of the General Council, the Working 
Group elected  H.E. Mr. Manuel A.J. Teehankee  of Philippines as Chairman of the Working Group.  
C. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
4. Members continued their consideration of the relationship between trade and transfer of 
technology and engaged constructively in discussi ons on the study titled "Facilitating Transfer of 
Technology to Developing Countries: A Survey of  Home-Country Measures", introduced earlier by 
UNCTAD at the 10th Session of the Working Group.  Members agreed that the study highlighted the 
important role the home-country measures played in  encouraging flows of technology to developing 
countries.  Underpinning the significance of a holis tic approach to a better understanding of the 
interface between trade and transfer  of technology, a number of Members said that further studies on 
'host-country measures' and 'domestic research and development programmes' that have been 
successful in generating industrial development and economic growth' could be useful in furthering 
the work of the Working Group.  Some Members stat ed that investment in research and development WT/WGTTT/M/11 
Page 2  
 
and the facilitation of transfer of technologies to developing countries was a powerful tool for 
development and in that context, discussions in the Working Group had a continuing relevance and 
importance to developing countries.  One Member e xpressed the view that the private sector, as an 
important partner in the global economy, had a responsibility to share technology with the less 
developed countries.  Another Member sugg ested that a recent document (IIM/1/4, dated 
6 April 2005), which related to IPR and technolog y transfer, and was being discussed in the ongoing 
inter-governmental meeting in WIPO, could also provi de useful issues for furt her consideration in the 
Working Group.  
5. Some Members held the view that though technology transfer was an important means to 
promote economic development, it was not an end in itself.  Although these Members recognized that 
the study provided a useful compilation of home-co untry measures, they felt that it only underscored 
one aspect of an otherwise complex issue.  They added that because production factors in the innovation process were overwhelmingly generated by th e private sector, there were limits to the role 
that governments could play in the transfer of technology.  However, Members broadly acknowledged 
that both the private and public sector had an important  role to play in technology transfer through 
cohesive partnerships.  In that c ontext, it was suggested that further work should be done in relation to 
the elements of "corporate responsibility" that fost ered development.  With respect to document 
IIM/1/4, a Member stated that th e scope of discussions in the Working Group was much broader than 
just on the role which IPRs played in encourag ing transfer of technology.  The TRIPS Council was 
therefore the appropriate forum for any discu ssions on the relationship between TRIPs and 
development. 
6. Responding to the Members' comments on the st udy, the representative of UNCTAD said that 
in order to make technology transfer and its diffusion successful it was important that home-country measures were complemented by host-country measur es.  He agreed that another area of increasing 
relevance was corporate responsibility which needed to be considered more carefully in the context of 
the relationship between trade and transfer of technology.  
D. A
NY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
7. Members had a very brief discussion on th e first two recommendations contained in 
document WT/WGTTT/W/6, namely (i) an examina tion of the different provisions contained in 
various WTO Agreements relating to technology transf er;  and (ii) the provisions contained in various 
WTO Agreements which may have the effect of hi ndering transfer of technology to developing 
countries.  A number of developing country Member s reiterated their interest in continuing discussing 
these recommendations at the next meeting. 
8. At the 10th Session of the Working Group, one Memb er had suggested that the Working 
Group request the Council for Trade in Services to in form the Working Group on the work carried out 
in the context of Articles IV and XXV of the GA TS.  Accordingly, the Secretariat briefed the 
Working Group and informed Members that the architecture of GATS tended to place many of the actual commitments undertaken by Members in the sphere of negotiated bi lateral commitments.  
However, the Special Session of the Services Council had had discussions on operationalizing 
Article IV mainly through the examination of Ca tegory II S&D proposals referred to it by the General 
Council, in 2003.  The issue of transfer of technol ogy had come up in those discussions, in particular 
in the context of Article IV:1 which related to increasing the participation of developing countries 
through negotiated specific commitments by strengthe ning their domestic service capacity, efficiency 
and competitiveness, through, inter alia, access to technology on a commercial basis.  WT/WGTTT/M/11 
 Page 3 
 
 
E. OTHER BUSINESS  
9. The representative of UNCTAD introduced ''A Case Study on the Electronic Industry in 
Thailand".  The study highlighted the contribution of the manufacturing sector of Thailand to the 
country's rapid export growth in recent years.   Thailand was among the top five exporters of 
computer-related products and the share of manufactu red exports in its tota l exports had increased 
from 5 per cent in 1970 to 74 per cent in 2 001.  The electronics industry accounted for about 
30 per cent of total exports.  Foreign Direct Invest ment (FDI) had played an important role in the 
development of the electronics industry in Thailand.  The FDI stock in the industry has increased from 
about $250 million in 1987 to above $4 billion by 200 1, facilitating the transfer of technology, 
assembly of high-tech products, enhanced  manage rial skills as well as the development of local 
suppliers.    
10. The study underlined the role of host-country measures in technology transfer by throwing 
light on some of the pro-active policies pursued by  the Government of Thailand.  These policies  
played a crucial role in creating a favourable e nvironment for export-oriented FDI, promotion of 
technology transfer, its diffusion, innovation in the industry and an enabling framework for the 
emergence of domestic support industries.  This ha d helped make the country attractive for foreign 
investors.  Some of these policies, through th e Unit for Industrial Linkages Development (BUILD) 
programme under the Thailand Board of Investme nt, among others, included tax exemption;  
provision of facilities in industrial parks at reduced cost;  facilitating partnerships between local and 
foreign technical consultants through the estab lishment of Industrial Consultancy Services;  
encouraging the development of support industries;   strengthening linkages between FDI and local 
industry; and assisting small and medium cooperation between foreign and domestic firms.  In 2004, 
the programme received the World Association fo r Investment Promotion Agencies (WAIPA) Award 
for best practice in promoting linkages that fac ilitate technology transfer and innovation.  These 
initiatives had played an important role in integra ting domestic contract manufacturers into the global 
production networks of trans-na tional corporations (TNCs) and in acquiring assembly process 
capabilities, enhancing export competitiveness, and bu ilding up domestic supp lier networks in the 
electronics industry.   
11. Members felt that the study was a valuable c ontribution to the deliberations of the Working 
Group.  Making preliminary comments on the study, one Member thought that certain types of activities by the Board of Investment to draw in FDI seemed to constitute subsidies which needed to 
be carefully looked at.  Members, however, requested  more time to go through the study and provide 
more substantive comments.  Accordingly, it was agr eed that the Members could, if they so wished, 
address the UNCTAD study at the next meeting. 
12. The Chairman
 informed Members that the Secretariat had received a communication from the 
Association of International Network for Sma ll and Medium Enterprises (INSME), a non-profit 
organization based in Italy.  Its members include d governmental bodies, international organizations, 
international NGOs and its work was aimed at stimulating trans-nationa l cooperation and public 
private partnership in the field of innovation and tec hnology transfer to small and medium enterprises.  
In its communication to the Secretariat, the IN SME had expressed an interest in informing the 
Working Group on its activities and making a presentati on at a future meeting of the Working Group.  
Members agreed to invite INSME to make a presen tation at the next meeting of the Working Group. 
13. The Chairman  informed Members that the next meeting of the Working Group had been 
tentatively scheduled for Wednesday, 6 July 2005.  
 
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