RESTRICTED  
 WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/10 
17 February 2005 
 (05-0672) 
  
Working Group on Trade and Transfer of Technology 
Tenth Session   
 
 
NOTE ON THE MEETIN G OF 10 NOVEMBER 2004 
 
Chairperson:  Mr. Sudhakar Dalela (India) 
 
 
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 ............................................................................................................................... ...4 
E. CONSIDERATION OF THE DRAFT REPORT (2004)  OF THE  WORKING GROUP 
(WT/WGTTT/W/8)................................................................................................................. ....4 
F. OTHER BUSINESS ........................................................................................................................4  
 
 
A. ADOPTION OF THE AGENDA  
1. The agenda contained in Airgram WTO/AI R/2423/Rev.1 of 5 November 2004 was adopted . 
B. ELECTION OF THE CHAIRPERSON  
2. On the basis of consultations held by the Ch airman of the General Council to find a suitable 
replacement for Ambassador Meetoo, in view of  his transfer from Geneva, the Working Group 
elected H.E. Mr. Chitsaka Chipaziwa of Zimbabwe as Chairman of the Working Group.  However, 
since Ambassador Chipaziwa was unable to attend the meeting due to unforeseen circumstances, the 
Working Group elected Mr. Sudhakar Dalela of Indi a as the interim Chairper son for the meeting. 
3. Members expressed their gratitude to the outgoing Chairman of the Group, for his leadership, 
dedication and tireless efforts in steering the work of the Working Group. 
C. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
4. In continuing the analysis of the relationship between trade and transfer of technology, 
Members recalled that at the last formal meeting, they had discussed some of the elements contained 
in earlier submissions, in particular on the identifica tion of various channels of transfer of technology 
and the conditions under which those channels could be operationalized.  In view of the complexity 
and multifaceted nature of technol ogy transfer, Members reiterated th e importance of continuing work 
in a more focused and intensive manner to be tter understand the relations hip between trade and 
transfer of technology.  Some Members expressed the view that a better understanding of the linkage WT/WGTTT/M/10 
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between trade and technology transfer might be possible if the Working Group undertook an  examination of provisions relating to technology tr ansfer in the various WTO Agreements.  They 
made references to some of the provisions relating to technology transfer in the TRIPs, TRIMs, GATS, SPS and TBT Agreements and the need to as sess and  analyse whether these agreements had 
fulfilled the objective of promoting transfer of t echnology.  However, other Members felt that the 
Working Group needed to be cautious in its pr esumption that WTO Agreements were not fulfilling 
their objectives.  They felt that ideally a discu ssion on the implications of the various provisions 
relating to the transfer of tec hnology, should take place in the relevant WTO bodies.  Other Members 
did not agree and said that in their view discussions  on these provisions fell within the mandate of the 
Working Group and that the intention was not to duplicate work being done in other WTO bodies, but 
rather to build on it. 
5. In the context of the inter-linkage between  trade and technology transfer, one Member 
underlined the multifaceted nature and complexity of  the issue and therefore stressed the importance 
of considering the definitional issues of technol ogy transfer; the various channels by which 
technology is transferred;  host country measures;   the enabling environment, for example, IPRs, 
investment regime, regulatory structure, good gov ernance, building infrastructure;  and human 
resource/capacity building.  Those were the areas that the Working Group needed to focus on in order 
to get a better understanding of the issue.  Member s agreed to continue discussions on these issues at 
the next formal meeting of the Working Group.  
6. The representative from UNCTAD introduced  a study on ''Facilitating Transfer of 
Technology to Developing Countries:  A Survey of  Home Country Measures'', copies of which were 
made available to Members.  The study survey ed 41 agencies and programmes in 23 developed 
countries offering home country measures to facilitate technology transfer.  The study, comprising four parts, identified existing home country measur es which encouraged transfer of technology in 
various modes to developing countries, in particul ar to the least-developed countries (LDCs).  The 
first part of the study contained seven major ty pes of home country measures;  the second part 
attempted to analyse the measures, highlighting where these measures had been most predominant 
and where there might be gaps with respect to the typology;  the third part identified further efforts 
that could be considered in the future to f acilitate technology transf er through additional home 
country measures;  and the fourth part of the study highlighted the importance of South-South 
Cooperation in the transfer of technology.   
7. The representative of UNCTAD said that the stud y showed that home country measures were 
often provided as part of interna tional cooperation programmes and as strategic trade and investment 
initiatives.  The most common measures included suppor t for training, foreign investment, matching 
services, venture capital support, financing of technol ogy transfer and encouraging partnerships with 
local firms.  Some of the home country measures identified in the study provided examples of best 
practices in facilitating technology transfer.  Program mes that directly suppor ted developing country 
firms to acquire technologies through partnership or financing seemed particularly effective.  In that 
regard the study highlighted the US Leyland Init iative, the Canadian Technology Transfer Fund and 
the Private Sector Development Programmes of Denmark as good examples of home country measures.  The representative of UNCTAD further said that the study also hi ghlighted the need for 
efforts to ensure that the good intentions of home country measures were realized.  These efforts 
could include extensive dissemination of informa tion on the expansion of the current home country 
measures, assistance to developing countries to impr ove technical standards and certification systems, 
increased mobilization of venture capital funds, allocation of a technical assistance budget for 
developing countries to support measures facilita ting technology transfer to small businesses 
especially in the LDCs, encouraging enterprises to adopt practices that may facilitate transfer of 
technology, rapid diffusion of technologies and re lated development work in host countries and, 
where possible, participation in research and develo pment with local firms and institutions.  The need  WT/WGTTT/M/10 
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for home country measures to complement and rein force host county measures to facilitate technology 
transfer and innovation in developing countries was also highlighted.   
8. Members felt that the study was a valuable contribution as it provided a summary of home 
country measures and highlighted the important role these measures could play in facilitating 
technology transfer.  Some Members stated that although the coverage of the study was limited, it 
highlighted the role which appropriate home country  measures could play in facilitating transfer of 
technology to developing countries.  While ackno wledging that a regulatory framework in the host 
country was crucial to attract technology, the role of the home country was of equally important.   
Home country measures could complement and rein force host country efforts to acquire technology 
by including, among others, policies which provide  financing for transfer of technology through 
special programmes, incentives to stimulate forei gn direct investment (FDI) with a technology 
transfer component to developing countries, incentives  for small and medium size enterprises to seek 
partners in developing countries, match-making activities as a means of assisting developing countries 
in acquiring technological options that suited their needs, preferential market  access in transfer of 
technology, simplification of rules of origin and the establishment of a database to ensure the flow of 
all relevant information on technolog y so as to facilitate match-making. 
9. One Member mentioned the possible linkage between ''home country measures'' and 
''corporate developmental responsibility'' since both home country governments and the private sector 
had a shared responsibility to facilitate technology tr ansfer.  A number of Members also stressed that 
the difference in levels of deve lopment among developing countries highlighted the need for South-
South co-operation in the context of technology transfer in areas of common interest.  These Members believed that the study clearly demonstrated th e need for home country measures to be further 
enhanced.  They believed that financing for technology transfer especially through special 
programmes in certain economic sectors, could be in strumental in encouraging the private sector to 
share its expertise and technology with partners in  developing countries.  Equally important was the 
need to provide incentives to stimulate FDI flow s to developing countries.  That could include 
providing incentives in support of small and medium size enterprises in developed countries obtaining partners in developing countries and  incentives to stimulate backward linkages with domestic firms.  
It was, however, felt that the study was limited in not addressing the legal and regulatory basis of 
these measures.  
10. Without denying the importance of home country measures in facilitating transfer of 
technology, some Members felt that the study a ddressed only one component of the debate, while in 
fact a number of factors operated together to influence the nexus between trade and transfer of 
technology.  They highlighted that host count y measures were equally significant if technology 
transfer was to be a win-win situation for both home a nd host countries.  It was generally felt that in 
order for the Working Group to take a holistic vi ew of technology transfer it would be necessary to 
consider all the elements which included among others , channels of technology transfer;  the role of 
the government, which was very often limited;  the role of the private sector, whose decisions were 
driven by commercial considerations;  host countr y measures;  the enabling environment;  and the 
absorptive capacity of the host country. 
11. Members, however, requested more time to stud y the survey and provide more substantive 
comments.  Accordingly, it was decided to con tinue discussions on the UNCTAD study at the next 
meeting. WT/WGTTT/M/10 
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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  
14. Members continued their consideration of  the 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.  Members held the view that an examin ation of provisions in the various WTO Agreements 
would enable the Working Group to build on and benefit from the work in other WTO bodies on provisions relating to technology transfer.  In that context, one Member suggested that the Working Group request the Council for Trade in Services to inform the Group on the work carried out in the 
context of Article IV and XXV of the GATS. 
E. C
ONSIDERATION OF THE DRAFT REPORT (2004)  OF THE  WORKING GROUP 
(WT/WGTTT/W/8) 
15. Members adopted the draft report (2004) contained in document WT/WGTTT/W/8 with the 
proviso that the discussion of  the 10th Session be reflected in the final report.  
F. O THER BUSINESS  
16. No issue was raised under other business. 
17. The Chairman  informed Members that the next meeting of the Working Group had been 
tentatively scheduled for Friday, 11 March 2005.  
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