WORLD TRADE  
ORGANIZATION  IP/C/W/551/Add.4 
25 October 2010 
 
 (10-5556) 
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 25 October 2010, is being circulated at the request of 
the delegation of New Zealand. 
 
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1. The following submission updates the report s ubmitted by New Zealand in October 2009 in 
accordance with paragraph 1 of the Decision of  the Council for TRIPS of 19 February 2003 on 
Implementation of Article 66.2 of the TRIPS Agre ement (IP/C/28), which provides that developed 
country Members submit annually reports on acti ons taken or planned in pursuance of their 
commitments under Article 66.2. 
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.  Usi ng a 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) design s 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: promoting a broad economic environment that is  conducive to the development of 
New Zealand enterprises and institutions and enables th em to transfer technology abroad; bilateral and 
regional development assistance programmes; encouraging trade in goods and services; and 
facilitating a strong intellectual property environment.  However, it should be noted that New Zealand 
recognises that the most relevant and cost-effective technologies may come from other countries 
(consistent with untied aid).  New Zealand’s recent history has also tended to avoid overly-
interventionist measures targeting sp ecific sectors or enterprises in favour  of an approach that enables 
all enterprises and institutions to bene fit from an improved environment.   IP/C/W/551/Add.4 
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  5. A key channel for promoting technology transf er from New Zealand to LDCs is through the 
New Zealand Aid Programme, managed by the Mini stry of Foreign Affairs and Trade (MFAT).  
MFAT views technology transfer as an implic it element in achieving its overall objective of 
supporting sustainable development in developing c ountries in order to reduce poverty; so much so, 
that it often cannot be distinguished from other elements of programmes. 
6. Due to New Zealand's history, culture and ge ographical location, the primary geographical 
focus of the New Zealand Aid Programme is the P acific, along with key partners in Asia.  The 
particular LDCs with which Ne w Zealand has bilateral programmes are: Samoa, Solomon Islands, 
Vanuatu, Cambodia, Laos and Afghanistan (all of whom are LDC WTO Members or Observers), and 
Kiribati, Tuvalu, and Timor Leste.   
7. The New Zealand Aid Programme has a core fo cus on sustainable economic development.  
This includes encouraging policies that support grow th and investment so that businesses have access 
to the critical infrastructure, finance and markets th ey need to succeed.  Direct, practical support for 
businesses, for example through mentoring and skills trai ning, is also important to develop expertise.  
While not necessarily captured in activities featured  in this 2009/10 Report, MFAT is exploring 
opportunities for the New Zealand Aid Programme to support infrastructure development in the areas 
of renewable energy, transport (e.g. roading, port s) and water supply, which is likely to involve 
elements of technology transfer.  MFAT is also de veloping a coherent focused programme to support 
Pacific Island countries to develop trade opportunities, and systems and resources to take advantage of 
these opportunities (for example, support for Pacific exporters to meet NZ customs and quarantine 
standards including support for a High Temperatur e Forced Air Facility in Tonga to meet NZ 
biosecurity requirements). 
8. This report identifies some relevant activities with key LDC partners through bilateral or 
regional mechanisms.  Any relevant activities of mu ltilateral 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  
9. MFAT and the New Zealand Ministry of Research, Science and Technology (MoRST) are 
discussing how to follow up on the results of an  early study funded by the New Zealand Aid 
Programme examining the input New Zealand scien ce can have towards development objectives in 
Pacific Island Countries and Territories, and poten tial areas to improve policy and practice.   
10. In 2009 the New Zealand Aid Programme ame nded the criteria of an ODA contestable fund 
that funds state sector agencies to undertake activ ities to promote developm ent in the Pacific.  
Eligibility now includes Crown Research Institutes, providing an additional mechanism to promote 
the transfer of scientific research and technology to LDCs.   
11. A number of existing activities funded from this contestable fund provide for technology 
transfer (including training) from New Zealand govern ment departments to the Pacific.  Relevant 
activities amounted to over $NZ 530,000 in 2009/10, and included the following: 
• Programmes to strengthen the ability of people to analyse and monitor water quality, and 
strengthen public health risk management techniques. 
• Provision of training to Pacific News Media orga nisations to develop human rights technical 
expertise. 
• Provision of a database and rele vant training to enable five Pacific Island countries to 
manage information on people travelling to Ne w Zealand for seasonal work and seeking to 
do so.  IP/C/W/551/Add.4 
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  12. The New Zealand Aid Programme’s bilateral and regional programm es provide technology 
transfer through training, skill development, and technology infrastructure.  The following sections 
provide further background on selected bilateral and regional programmes as examples of technology 
transfer to least developed countries.  The figur es quoted are for the year to June 2009 unless 
otherwise stated.  The information provided is b ased on the reporting criteria agreed by the TRIPS 
Council in February 2003. 
A. EXAMPLES OF BILATERAL PROGRAMMES WITH LDCS   
13. As the New Zealand Aid Programme evolves ove r time, different elements of technology 
transfer will feature.  The following are some current examples from bila teral programmes with a 
number of LDC WTO Member and Observer Countries .    
1. Samoa 
14. The New Zealand Aid Programme is supporting the Government of Samoa Ministry of 
Justice and Courts Administration (MJCA) Ins titutional Strengthening Programme (MJCA ISP) to 
develop capacity in the areas of policy, planning and evaluation, quality assu rance, human resource 
management, development and trai ning (including information technology) for the MJCA.  The 
priority areas of focus include courts administra tion, probation and parole, and censorship.  The 
MJCA technology transfer components of the progra mme include the funding of a 3 year IT training 
business plan, development of a Ministry IT stra tegy, purchasing of client hardware, user and 
administrator IT training, development of a Minist ry website, networking of Ministry computers and 
the implementation of an Offender Management Syst em (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, the New Zealand Aid Programme has 
budgeted to provide approximately $NZ 330,000 in technology transfer associated funding. 
2. Solomon Islands  
15. In 2004/05 New Zealand 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 2009/10 $NZ 400,000 was expended. 
16. The New Zealand Aid Programme has also suppor ted the modernisation of the information 
management systems of the Solomon Islands Minist ry of Fisheries and Marine Resources.  The 
programme has resulted in establishment of a working IT system enabling networking, data 
processing and more reliability in the licensing process.   Databases have been developed for recording 
key information (e.g. receipts, licenses and export data ).  Information is now integrated into regional 
databases, and licence information is held on an automated webpage for regional organisations and 
enforcement agencies.  In 2009/10 $NZ 887,000 w as expended on work with the Solomon Islands 
Ministry of Fisheries and Marine Resources, IT systems made up approximately 10 per cent of this 
funding.   
17. The New Zealand Aid Programme has also s upported improvements to the Solomon Islands 
Inland Revenue Division Revenue  Management System (RMS) and a website and intranet.  
Additional operational processes have been integrat ed into RMS, including assessment of provisional 
tax, monitoring of outstanding returns and wider re porting functions.  In 2009/10 $NZ 2.3million was IP/C/W/551/Add.4 
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  expended on work with the Solom on Islands Inland Revenue Division,  IT systems improvement made 
up approximately 10 per cent of this funding.    
3. Vanuatu  
18. In 2006/07 the New Zealand Aid Programme began funding the development of a Vanuatu 
Education Information Management System, known as VEMIS.  This project is part of a larger 
engagement with the Vanuatu Ministry of Edu cation and provides essentia l data and qualitative 
information at the individual school level to s upport evidence based planning and policy development 
as well as performance monitoring and evaluation for the primary education sector.   Approximately 
$NZ 1,000,000 has been spent to date on the development of the VEMIS system, and New Zealand continues to contribute to the costs of on-call technical support through our contributions to the wider 
Vanuatu Education Roadmap. 
19. New Zealand also allocated $NZ 1.4 million to he lp Vanuatu meet the new International Civil 
Aviation Organisation requirement for all new pa ssports issued after April 2010 to be machine-
readable.  This has included assisting Vanuatu to develop a new passport processing system and 
custom-made database, and building a new secure passport-processing facility.  The project will 
enable Vanuatu to continue its active pa rticipation in the RSE scheme.     
20. As part of New Zealand’s assistance to st rengthen Vanuatu’s corr ections and probation 
services, the New Zealand Aid Programme has spent $NZ 300,000 in funding Corrections New Zealand to assist Vanuatu with the developmen t and installation of an Offender Information 
Management System.  This system is used ex tensively by the Parole Board when making 
recommendations, and also by judges and lawyers 
21. As part of New Zealand’s involvement in strengthening the Vanuatu Customary Land 
Tribunal, $NZ 4.1 million has been allocated to de veloping Vanuatu’s land information management 
systems.  Activities include updating current elec tronic systems for the management of survey 
information, conversion of record maps and survey plans to digital format and education and training 
for Department of Lands staff. Activities are due to begin in the first quarter of 2011. 
4. Tuvalu 
22. In Tuvalu, a small constitutional monarchy of approximately 11,000 people spread over nine 
low-lying coral atolls and islands, New Zealand’ s ODA programme is focused on supporting fiscal 
management and economic develo pment; promoting self-reliant local development on the outer 
islands; and human resource  development.  In 2009/10, we provi ded approximately $NZ 1,065,000 to 
Tuvalu in bilateral funding for various educa tion activities (additional assistance was provided 
through regional programmes).  This bilateral assistance included:  
• scholarships to study in NZ and in the region, eg  at the University of the South Pacific, to 
transfer knowledge and expertise to further th e social and economic development of Tuvalu; 
and 
• short courses and training attachments in NZ 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 major emphasis of the New Zealand Aid Programme in Kiribati is workforce skills  IP/C/W/551/Add.4 
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  development and urban development.  In the year to June 2010 New Zealand’s bilateral assistance to 
Kiribati amounted to $NZ 5.8 million. New Z ealand support will increase to $NZ 9 million 
in 2011/2012. 
24. An example of the New Zealand Aid Programme’s assistance is our 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 $NZ 2.1 million in the year to 
June 2010, including capital development.   
25. New Zealand is currently designing a programme of support to increase fisheries training 
capacity and employment opportunities, including significant redevelopment of the Fisheries Training Centre.  
B. E
XAMPLES FROM REGIONAL APPROACHES  
26. New Zealand provides LDCs with transfers of technology and assistance to encourage 
investment through various regional assistance progra mmes.  In some cases it is difficult to separate 
expenditure specifically provided to LDC Members,  although it is clear that LDC Members within 
these regions benefit from these programmes. 
1. Pacific Economic and Trade-related Activities 
27. Sound economic management and appropriate policies (eg ICT regulation) are critical to 
encourage technology transfer, trade and invest ment.  The New Zealand Aid Programme provides 
funding to various regional organisations that pr ovide economic advice, capacity building, or support 
the development of trade or investment: 
• the Private Enterprise Partnership helps d esign and deliver business support and promote a 
business enabling environment for SM Es ($NZ 760,000 per annum FY08-10); 
• the Foreign Investment Advisory Service pr ovides policy advice to governments on creating 
an environment friendly to foreign and domestic  direct investment and the private sector 
($NZ 535,000 per annum FY08-10); 
• the Pacific Financial Technical Assistance Ce ntre assists countries to have the skills and 
institutional capacity to effectively manage their economies (for example, helping the 
Solomon Islands to modernise their tax and cu stoms divisions)  ($NZ 1,000,000 per annum 
FY08-10); 
• the Pacific Islands Trade and Investment Co mmission office in Auckland aims to enhance 
trade, investment and tourism opportunities for Pacific Island businesses ($NZ 890,000 in 2009/10). 
 28. The New Zealand Aid Programme has funded th e installation of a New Zealand-designed 
customs database (PC Trade) in a number of Pacifi c Island Countries, including several LDCs.  We 
also fund helpdesk services (provided by Statistics New Zealand) to enable countries to effectively 
utilise this technology. 
2. Pacific Environmental Activities 
29. The New Zealand Aid Programme annually provides financial support to the Secretariat of 
the Pacific Regional Environment Programme (SPREP) ($NZ 1.425m in 2009/10).  This agency in turn provides technical assistan ce to Pacific Countries and Territories in the areas of biodiversity 
management, climate change adaptation, waste ma nagement; land and ocean resource use, water and 
sanitation, and hazard and disaster management, thus  facilitating the transfer of knowledge into the 
region.   IP/C/W/551/Add.4 
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  30. The New Zealand Aid Programme also admini sters the Pacific Regional Environment and 
Vulnerability Programme ($NZ 6 million per annum).  This includes support through the New Zealand Ministry of Civil Defence and Emergency Management for building disaster management systems in the Pacific, as well as other support for monitoring of risks.  In 2009/10 $NZ 459,000 was also provided to support transfer of specific knowledge on the management of 
invasive species in the Pacific through a pa rtnership with the University of Auckland . 
III. OTHER NEW ZEALAND PROGRAMMES WITH A TECHNOLOGY TRANSFER 
COMPONENT   
A. I
NTELLECTUAL PROPERTY  
31. 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. 
32. For example, in 2009, IPONZ hosted a Senior Intellectual Property Officer from the Samoan 
Ministry of Commerce, Industry and Labour on a short-term study award funded by the New Zealand 
Aid Programme.  The one year secondment enabled th e Officer to learn more about the examination 
and processing of intellectual property rights.  The training involved learning New Zealand trade mark 
law and practical experience with conducting trade ma rk examinations.   The Officer also spent time 
learning IPONZ systems.  This knowledge was fed b ack to the Samoan Office and provided insights 
into the provision of efficient and quality exam ination services, and informed the development and 
training of the Samoan Registries Staff. Further detail on some relevant initiatives can be found in 
New Zealand’s report on the implementation of Article 67 of the TRIPS Agreement. 
B. RECOGNISED SEASONAL EMPLOYER SCHEME (RSE) 
33. 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.  All of the LDCs in 
the Pacific (Kiribati, Samoa, Solomon Islands, Tuvalu and Vanuatu) have had workers in New 
Zealand during the first two seasons, as has Tonga.   
34. Some RSE employers have also indicated an inte rest in possible investment and joint venture 
opportunities in the Pacific Islands.  Although the t ype of fresh produce grown in the Islands is 
different to that grown in New Zealand, there is lik ely to be some skills and technology transfer as a 
result of RSE.  The Ministry of Foreign Affairs is investigating how such skills or technology transfer 
from New Zealand employers could be supported.  To  strengthen the skill transfer element associated 
with RSE, the New Zealand Aid Programme funde d a pilot programme from late-2009 to enable 
Pacific RSE workers to receive training while th ey are in New Zealand in the areas of literacy, 
numeracy and financial literacy.  This will support thei r ability to use and apply technologies in their 
home countries.  
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