WORLD TRADE  
ORGANIZATION  IP/C/W/519/Add.1 
14 October 2008 
 
 (08-4847) 
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 7 Octobe r 2008, from the Delegation of New Zealand is 
being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the 
TRIPS Agreement.  
_______________ 
 
 
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 2007 - June 2008. 
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, we see four 
key modes of technology transfer:  i) physical 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 our technology transfer to LDCs is through the 
New Zealand Agency for International Development (NZAID).  NZAID views technology transfer as 
an implicit element in achieving its overall objec tive of reducing poverty.  Due to New Zealand's 
history, culture and geographical location, mo st of the relevant programmes implementing 
Article 66.2 focus upon LDCs in our neighbouring Asia-P acific region.  This report identifies relevant IP/C/W/519/Add.1 
Page 2  
 
  regional and bilateral activities.  Any relevant ac tivities of multilateral 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. ODA ACTIVITIES PROVIDING TECHNOLOGY TRANSFER TO LDCS  
6. NZAID does not provide any direct incentives to New Zealand organizations 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 study is supported through NZAID's ODA contestable fund 
for government agencies and is still in progress with $NZ 212,000 planned for spending in the 
2008/09 financial year. 
7. In addition, a number of other activities were  funded from this contestable fund enabling 
New Zealand government departments to undert ake activities that support technology transfer 
(including training) in the Pacific.  This amounted  to over $NZ 900,000 in 2007/08, and included the 
following activities: 
• Programmes to strengthen the ability of people 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; 
• Specialist operational and leadership traini ng for the Pacific Island Fire Services; 
• Provision of a database and relevant training to enable five Pacific Island countries to 
manage information on people travelling to New Zealand for seasonal work and 
seeking to do so; 
• 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 bene fits 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 2008.  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 Members,  although it is clear that LDC Members within 
these regions benefit from these programmes.  IP/C/W/519/Add.1 
 Page 3 
 
 
  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 organizations 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 environmen t for SMEs ($NZ 760,000 per annum 
FY08-10) 
• the Foreign Investment Advisory Servi ce provides policy advice to governments on 
creating an environment friendly to foreign and domestic direct investment and the 
private sector ($NZ 535,000 per annum FY08-10 ) 
• the Pacific Financial Technical Assistance Ce ntre assists countries to have the skills 
and institutional capacity to effectively manage their economies (e.g., helping the 
Solomon Islands to modernise their tax a nd customs divisions) ($NZ 1 million, per 
annum FY08-10) 
• the Pacific Islands Trade and Investment Commission office in Auckland aims to 
enhance trade, investment and touris m opportunities for Pacific Island businesses 
($NZ 890,000 in 2007/08) 
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 ($NZ 1.5 million over five years). 
12. NZAID has funded the installation of a New Ze aland-designed customs database (PC Trade) 
in a number of Pacific Island Countries, including several LDCs.  We also fund helpdesk services 
(provided by Statistics New Zealand) to enable countries to effectively utilise this technology. 
2. Pacific Environmental Activities 
13. NZAID annually provides financial support to the Secretariat of the Pacific Regional 
Environment Programme (SPREP) and South Pacific Applied Geoscience Commission (SOPAC) ($NZ 1.5 million and $NZ 2.05 million respectively) .  These agencies in tu rn provide technical 
assistance to Pacific Countries and Territories in the areas of biodiversity management, climate change adaptation, land management and ocean re source use, water and sanitation, and hazard and 
disaster management, thus facilitating the transfer  of knowledge into the region.  $NZ 335,000 was 
also provided to support transfer of specific knowle dge 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 2007/08 this programme amounted to $N Z 2.2 million, with the aim of assisting 
developing countries to harness international trade fo r development.  This is achieved by building 
partners' capabilities at the government level to legi slate, regulate and implement, and at the business 
level in terms of production tec hniques and business skills, including elements of technology transfer.  
The projects involve the LDC Members Cam bodia and Myanmar and LDC Observer Lao PDR 
(Viet Nam is also a participant in some activities).  In 2007/08 the programme included: IP/C/W/519/Add.1 
Page 4  
 
  • building the legislative and regulatory capabilities of governments  in phytosanitary 
matters as well as building capacity to en sure effective pest surveillance and 
management and phytosanitary inspections; 
• improving government capabilities in food safety/quality; 
• building capacity of government in metrol ogy (consistent weights and measures) to 
develop legislation and regulation and pr ovide world-class inspection and testing, 
including through provision of technical hardware/equipment to assist in this area. 
B. E
XAMPLES OF NZAID  BILATERAL PROGRAMMES  
15. As NZAID's programmes evolve over time, diffe rent elements of technology transfer will 
feature.  The following are some current exam ples from NZAID's bilateral programmes with a 
number of LDC WTO Members and Observer Countries. 
1. Solomon Islands 
16. In 2004/05 NZAID 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 2007/08 $NZ 330,000 was expended. 
17. NZAID has also funded the modernization of the information management system of the 
Solomon Islands Customs Service.  PC/Trade is a Customs management computer system that allows all import and export details to be lodged electr onically.  This means more accurate and efficient 
processing and, in time, a faster system for peop le bringing goods in and out of the country.  
Introducing the system and developing the capacity of Customs staff to manage the new system took 
six years and was a joint effort led by the Regi onal Assistance Mission to the Solomon Islands 
(RAMSI), with technical support from Statistics Ne w Zealand and funding from NZAID.  Funding of 
NZ$170,000 was provided in 2007/08. 
2. Samoa 
18. The NZAID and Government of Samoa Minist ry of Justice and Courts Administration 
(MJCA) Institutional Strengthen ing Programme (MJCA ISP) was established to develop capacity in 
the areas of policy, planning and evaluation, quality assurance, human resource management, 
development and training (incl uding information technology) for the MJCA. The priority areas of 
focus include courts administration, probation a nd parole, and censorship.  The MJCA technology 
transfer components of the programme include the funding of a three-year IT training business plan, 
development of a Ministry IT strategy, purchasing of client hardware, user and administrator IT 
training, development of a Ministry website , networking of Ministry computers and the 
implementation of an Offender Management System  (OMS) for the Probation and Parole Service.  
The OMS is designed to track offenders through the Justice system and includes the development of 
client and server software, the purchase of server an d client hardware and the training of end users 
within Probation.  Since the programme inception in 2006, NZAID has budgeted to provide approximately $NZ 330,000 in technology transfer associated funding. 
19. NZAID and AusAID support the Samoa In-Country Training (ICT) Programme which 
provides training courses in a wide range of vocati onal and work-based skills areas.  Each course is 
specifically designed to meet an expressed need or sk ills shortfall in the public, private or civil society  IP/C/W/519/Add.1 
 Page 5 
 
 
  sectors.  Courses are generally from one to three week s in duration and take place within Samoa.  As 
part of the development of the programme and re lated information management for the managing 
organization, an online Trainer and Tracer St udy database was developed to simplify the 
administration of advertising and tendering pr ocess and provide an electronic monitoring and 
reporting system. During 2007/08, NZAID and AusAID provided $NZ 910,000.  Of this 
approximately $NZ 20,000 rela ted to database systems which, while not substantial in financial terms, 
has had a significant impact by allowing the orga nization to focus on its core business of delivering 
training. 
3. Vanuatu 
20. In 2006/07 NZAID began funding a two-year programme with the Vanuatu Ministry of 
Education to develop an Education Information Management System, known as VEMIS.  The system 
provides essential data and qualitative information at the individual school level to support evidence 
based planning and policy development as well as  performance monitoring and evaluation for the 
primary and secondary education sector.  Approximate ly $NZ 720,000 has been provided thus far, 
and an estimated further $NZ 1 million will be provided over the next two years to focus on 
sustainability and strengthen effective use of the system.   
21. New Zealand's Official Development Assistance is  relatively focused on Asia and the Pacific.  
It includes support to a number of non-WTO member LDCs.  The following are examples of NZAID's support for technology transfer w ithin some of these bilateral programmes. 
4. Tuvalu 
22. 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 economic development and 
reform;  promoting self-reliant local developm ent on the outer islands;  and human resource 
development.  In 2007/08, we provided $NZ 800,0 00 to Tuvalu in bilateral funding for various 
education activities (additional assistance was provided through NZAID's regional programmes).  This included: 
• scholarships to study in New Zealand and in the region, eg 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. 
5. Kiribati 
23. 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 2008 
New Zealand's bilateral assistance to Kiribati amount ed to $NZ 2.8 million, with a strong emphasis on 
education and training.  This included a range of scholarships ($NZ 1.5 million) and training activities 
both within Kiribati and overseas.   
24. An example of NZAID's assistance is our support to the Kiribati Marine Training Centre 
(MTC), which is intended to maintain the competitiv eness of Kiribati's seamen in the maritime labour 
market.  Funding to MTC was $NZ 335,000 in the year  to June 2008, including capital development.  IP/C/W/519/Add.1 
Page 6  
 
  III. OTHER PROGRAMMES WITH A TECHNOLOGY TRANSFER COMPONENT   
A. I
NTELLECTUAL PROPERTY  
25. 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. 
26. 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, including plant variety rights.   
B. RECOGNISED SEASONAL EMPLOYER SCHEME (RSE) 
27. 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.  While workers are in New Zealand th ey will learn new skills and be exposed to new 
ways of doing things, which they take home with them at the end of their contract.  Some RSE 
employers have also indicated an interest in possi ble investment and joint venture opportunities in the 
Pacific Islands.  Although the type of fresh produce gr own in the Islands is different to that grown in 
New Zealand, there is likely to be some skills and technology transfer as a result of RSE.  All of the 
LDCs in the Pacific (Kiribati, Samoa, Solomon Islands, Tuvalu and Vanuatu ) have had workers in 
New Zealand during the first season, as has Tonga. 
 
 
__________