RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/WGTTT/M/16 
1 September 2006 
 (06-4190) 
Working Group on Trade and Transfer of Technology 
Sixteenth Session  
 
 
NOTE ON THE MEETING OF 13 JULY 2006 
 
Chairperson:  H.E. Mr. Manuel A. J. Teehankee (Philippines) 
  
A.
 ADOPTION OF THE AGENDA ........................................................................................................1  
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY ............1  
C. ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING 
COUNTRIES ............................................................................................................................... ...2 
D. OTHER BUSINESS ........................................................................................................................3  
 
 A. A
DOPTION OF THE AGENDA  
1. The agenda contained in Airgram WTO/ AIR/2857 of 28 June 2006 was adopted.  
B. ANALYSIS OF THE RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY  
 
2. Under this agenda item, the Working Group cont inued its consideration of the relationship 
between trade and transfer of technology and had a useful discussion, including in the context of two 
studies that were introduced by UNCTAD and UNIDO at its last meeting.  The UNCTAD study  had, 
on the basis of the World Investment Report 2005,  highlighted a number of means, including foreign 
direct investments in research and development,  payments for intellectual property, royalties and 
licensing fees which could help in determining the quantum of international technology flows.  The 
UNIDO study on "Technology Transfer & Trade:  Th e Toy Industry in India" had underscored the 
vital importance of technology and innovation fo r achieving economies of scale and in creating 
competitiveness as well as for the devel opment of skills and local capacity.   
3. While Members generally found these studies useful in flagging relevant issues in the context 
of the work of the Working Group, some Members were of the view that these organizations should 
be asked to enlarge the focus of their studies to the much broader challenge of how the multilateral 
trading system could provide a response to the technological needs of developing countries.  The studies should focus on topics, for developing coun tries to undertake resear ch and development, 
pursue innovation and adopt policies conducive to  their social and economic development;  
strengthening of the concept of special and differe ntial treatment within WTO provisions;  and setting 
up of information exchange mechanisms in WTO councils and committees, on the issue of technology 
transfer, with a view to increasing information on the role of trade disciplines in encouraging 
innovation.  A broader treatment of all related i ssues including on foreign direct investments in 
research and development, intellectual property ri ghts, payments and royalties, licensing fees, the 
volume of trade in capital goods and the private and public sector partnership would help Members in 
their quest for clarity in the relationship between trade and transfer of technology. WT/WGTTT/M/16 
Page 2  
 
  4. Cautioning against narrowing the discussion in the Working Group to national efforts and on 
the so-called "host-country policies", some Members expressed the view that that would be of limited 
value.  Although the importance of these measu res as feasible means to achieve technological 
development could not be denied, the debate on na tional efforts or on isolated cases of technological 
successes could deviate the Working Group from its  mandate.  These Members felt that the Group 
should focus on international c ooperation and on multilateral solutio ns to stimulating technology 
transfer. 
5. Some Members stressed that all WTO provisions related to transfer of technology must be 
effectively implemented.  Articles 7, 8 and 66.2 of TRIPS Agreement, for instance, provided for 
transfer of technology to developing countries.  Similarly Article 7 placed innovation and technology 
transfer at the centre of the intellectual propert y system.  Article 8.2 acknowledged the right of 
countries to avoid the abuse of IPRs by right holders or to prevent practices that "adversely affect the 
international transfer of technology".  Likewise Article 66.2 encouraged developed countries to 
provide incentives to their enterprises and in stitutions to promote technology transfer to 
least-developed countries. 
6. Pointing to the importance of mandate of Work ing Group to developing countries and to the 
development dimension of the Doha Round, it was stat ed that there was a need to assess the impact of 
multilateral trade rules on technology flows from an objective perspective.  The Working Group 
should address the challenge of the implementation of  all provisions related to technology transfer in 
the WTO Agreements and consider how a mechanis m could be set up, within the WTO mandate, to 
ensure effective compliance of these provisions. In this context one Member suggested that the WTO 
Secretariat prepare a compilation of all WTO provisions on the subject. 
7. It was also emphasised that the Working Group should focus on international cooperation and 
on multilateral solutions to stimula ting technology transfer.  Some Members stated that a lot more 
work had to be done before the relationship be tween trade and transfer of technology could be 
properly understood.  Accordingly, they expressed th eir keenness to keep th e issue on the agenda of 
the future meetings.  The Chairman, while agreei ng to this, also encouraged Members to make 
country presentations, highlighting through national examples, the role that trade could play in 
facilitating technology transfer.  It was agreed to revert  to this issue at the next formal meeting of the 
Working Group. 
C. A
NY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT BE TAKEN WITHIN THE 
MANDATE OF THE WTO  TO INCREASE FLOWS OF TECHNOLOGY TO DEVELOPING COUNTRIES  
 
8. Under the agenda item relati ng to the consideration of possible recommendations on steps that 
might be taken within the mandate of the WTO to increase flows of technology to developing 
countries, a focused and positive discussion  took place on the submission (WT/WGTTT/W/10) 
tabled earlier by India, Pakistan and the Philippi nes.  The proponents provi ded detailed responses and 
clarification to the questions that some develope d countries had posed on the issues raised in the 
submission at the last meeting of the Working Gr oup.  These questions related to issues on ''the 
linkage between Articles 66.2, 67 and 7 of the TRI PS Agreement'';  ''the meaning of formal adoption 
of voluntary guidelines'';  ''the intent of the establishment of mechanisms for the formation, assessment and implementation of technological standard s'';  and ''the development of mechanisms to 
disseminate and exchange information on invest ment and technology-related incentives and best 
practices''.  
9. With regard to the linkage of   the relevant provisions of  the TRIPS Agreement, the proponent 
said that the thrust of these provisions was to bu ild technological capacity in the developing and 
least-developed countries.  However, this linkage needed to be properly strengthened in order to 
achieve the objectives set out in Article 7 of th e TRIPS Agreement which clearly stated that  WT/WGTTT/M/16 
 Page 3 
 
 
  protection and enforcement of IPRs should contribu te to the promotion of technological innovation 
and to the transfer of technology.  However, Ar ticle 67 dealt only with protection and enforcement 
and did not include any measure that might "pro mote technology transfer".  Although Article 66.2 
pertained to providing incentives to developed coun try firms and institutions and did not carry the 
weight of Article 67 – i.e. on request, in practical  terms Member countries were required to provide 
assistance to a developing country party on mutually agreed and fair conditions. 
10. Likewise, on the proposed mechanisms for adoptin g voluntary guidelines similar to that of the 
OECD, the proponents stated that that would imply that countries would implement or, at least, make an attempt to monitor the activities of their firms.   The proposed mechanisms could be used by WTO 
to encourage and monitor the operationalization of  technology transfer clauses by home and host 
countries in promoting observation of science and technology guidelines that are likely to promote 
technology transfer . 
11. Referring to the proposal on technical standards, the proponents stated that most of the 
developing countries lacked capacity to formulate,  assess and implement technical standards, one 
reason, perhaps was their inability to participate in the formulation process.  It was suggested that the 
Working Group could propose the establishment of a mechanism to help developing countries to 
formulate, assess and implement these standards.  In  this regard, strengtheni ng of national bureaus and 
other related national agencies could be very useful. 
12. With regard to proposed recommendation on encouraging patent offices to cooperate in 
sharing information, the proponents suggested th at such cooperation could be actualised through 
various modes including through access to databases in examining patents or patent searches, 
supporting IP offices to acquire the necessary t echnologies, provision/sharing of software and 
classifications to enable comparisons across countri es and providing support in training and exchange 
of personnel.  In this context,  WIPONET project through which WIPO  helped developing country IP 
offices that lacked Internet connectivity to obtai n access to the Internet and databases of IP 
information was specifically mentioned.  It was rec ognized that a lot of work needed to be done to 
disseminate patent information within countries so that it could be used by researchers and industry 
and other stake-holders. 
13. Some Members suggested that the propone nts provide written responses to the questions 
posed by them, so that those could be forwarded for consideration to the capitals.  The proponents 
agreed to consult among themselves and see if they coul d do so.  They also stated that in the next 
meeting they would come up with further ideas to focus the debate in the Working Group. 
14. Members agreed to continue discussion on th e possible recommendations on steps that might 
be taken within the mandate of the WTO to increa se flows of technology to developing countries at 
the next formal meeting of the Working Group.  
D. O
THER BUSINESS  
 
15. No matter was raised under "Other Business".  
16. The next formal meeting of the Working Group which is tentatively scheduled to be held on 
6 October 2006. 
 
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