REPORT (2015) OF THE Working group on trade and

transfer of technology TO THE GENERAL COUNCIL

1  introduction

1.1.  At the Fourth Ministerial Conference in Doha in November 2001, Ministers agreed to "an examination, in a Working Group under the auspices of the General Council, of the relationship between trade and transfer of technology, and of any possible recommendations on steps that might be taken within the mandate of the WTO to increase flows of technology to developing countries".^[1] Paragraph 43 of the Hong Kong Ministerial Declaration of 18 December 2005 reaffirmed the Ministers' commitment to advance the work of the Working Group and instructed the General Council "to report further to our next Session". 

1.2.  Since the October 2013 Report of the Working Group on Trade and Transfer of Technology to the Ministers, the Working Group has held [six] sessions during the period 2014 to 2015. The reports of the meetings are contained in documents WT/WGTTT/M/45, WT/WGTTT/M/46, WT/WGTTT/M/47, WT/WGTTT/M/48, WT/WGTTT/M/49 and WT/WGTTT/M/50.^[2] At these meetings, Members continued the analysis of the relationship between trade and transfer of technology, as well as considered any possible recommendations on steps that might be taken within the mandate of the WTO to increases flows of technology to developing countries.

2  RELATIONSHIP BETWEEN TRADE AND TRANSFER OF TECHNOLOGY

2.1.  During the year 2014, Members continued their analysis of the relationship between trade and transfer of technology, largely on the basis of: (a) the findings of a WTO Workshop on Environmental Technology Dissemination, which looked at the challenges and opportunities related to environmental technology dissemination; and (b) the themes that emerged in a dedicated Workshop organized under the aegis of Working Group in June 2014. In addition, the Philippines briefed Members on some important initiatives taken by its Government in the field of innovation, technology generation and its transfer.

2.2.  The deliberations on the main findings of the WTO Workshop on Environmental Technology Dissemination, focused on barriers to the dissemination of environmental technologies and on the extent to which their elimination would contribute to sustainable development. The discussion underscored that information-sharing exercises were crucial in enhancing Members' understanding of the complex relationship between technology transfer and trade.

2.3.  The Working Group held a Workshop on Trade and Transfer of Technology in June 2014, back‑to-back with the 46^th Session of the Working Group. The Workshop was structured around two sessions, with each session having three further sub-sessions, in which a cross section of experts from public/private sectors, IGOs and the academia discussed the nexus between trade and transfer of technology. Among the themes that emerged from the debate, was the broad agreement that technology transfer remains a key determinant of increased labour productivity, and thus of economic growth and development. Trade was seen as an important factor in the technology transfer process, both as a direct vehicle for transfer of technology in the form of imports of machinery, equipment, and services, and less directly, through FDI, licensing, Non‑Equity Modes (NEMs) of production, global value chains (GVCs), and temporary labour movement. Some speakers expressed the view that GVCs, in many industries and across countries, could foster innovation, learning and technological upgrading in developing country firms. The speakers also emphasized the importance of services and trade facilitation measures in bolstering GVC‑oriented investment and consequently, technology transfer. Emphasis was also laid on the importance of education and the availability of skilled human resources and appropriate institutional and policy environments in the host country, for both the transfer and absorption/adaptation of technology. Some Members expressed the view that given the complexity of the relationship between trade and transfer of technology other factors may also have a bearing on the issue. A report of the workshop is contained in document WT/WGTTT/W/23.

2.4.  Some Members expressed the view that, on the basis of what had been said by the academics/experts in the workshop, the Working Group could: (a) explore how liberalization in the services sector could facilitate technology and knowledge transfer; and (b) discuss ways on how the Working Group could benefit from synergizing its work with other WTO bodies. In this context, a proposal tabled by Ecuador in the TRIPS Council that pertained to Intellectual Property Rights (IPRs) and their impact on green technologies and climate change was particularly mentioned. Members hoped that the deliberations in the Workshop would lead the way for meaningful progress and consequently to the fulfilment of the mandate of the Working Group.

2.5.  In the meetings held during 2015, Ecuador briefed the Working Group on the deliberations of a workshop titled "Contribution of Intellectual Property to Facilitating the Transfer of Environmentally Rational Technology" that the Permanent Mission of Ecuador had organized in May 2015 in Crozet, France, in collaboration with Friedrich Ebert Stiftung. The objective of the workshop, that gathered experts from the ICTSD, South Centre, UNCTAD, WTO and the academia, was to discuss and refine a proposal (IP/C/W/585) that Ecuador had earlier tabled in the TRIPS Council on the subject. 

2.6.  The Philippines briefed Members on some of the recent initiatives taken by its Government to encourage and generate technology transfer. It shares the specific legislative measures that had been enacted to encourage and generate technology and its transfer, including the setting up of technology-focused institutional infrastructure to implement development-oriented programmes to promote international cooperation and public sector involvement. In February 2015, the Intellectual Property Office of the Philippines (IPOPHL) launched the IP DEPOT, an online platform which provides an avenue for IP stakeholders to freely promote their own IP assets, not only in the Philippines but also around the world through IPOPHL’s international partners.

2.7.  Chinese Taipei informed the Working Group about its e-Customs ICT Project on Trade Facilitation to Central American countries. The objective of the project was to offer technology solutions to streamline custom procedures through using high-tech integration processes so as to reduce delays, transaction and trade costs. At the 50^th Session of the Group, Chinese Taipei offered to share its experience from its different development cooperation programs.

2.8.  Members underscored the significance of sharing experiences and lessons learnt in innovation and technology generation, particularly by countries that have undergone rapid technological advancement. Such experience‑sharing exercises would not only enrich and advance the work of this Group but also facilitate building of synergies and finding technology solutions besides helping technology-deficient countries make more informed choices in terms of pro‑technology policies and measures.

3  ANY POSSIBLE RECOMMENDATIONS ON THE STEPS THAT MIGHT BE TAKEN     WITHIN THE MANDATE OF THE WTO TO INCREASE FLOWS OF TECHNOLOGY TO       DEVELOPING COUNTRIES

3.1.  During 2014, Members continued to discuss a submission made earlier by India, Pakistan and the Philippines entitled "Facilitating Access to Information on Appropriate Technology Sourcing - A Step to Increase Flows of Technology to Developing Countries". A number of Members commented and raised questions on certain elements that were contained in the document. The proponents, on their part, indicated that they were reviewing their proposals and hoped to develop a revised submission which they would table in the Working Group.

3.2.  Continuing to discuss this submission in 2015, the proponents informed the Group that they were still in the process of revising their submission and that they intended to table it in the near future. The Chair encouraged the proponents to do so at the earliest so as to enable the Working Group to engage in a productive discussion on the recommendations with a view to fulfilling its mandate.

3.3. At the 50^th Session, India suggested that the Secretariat host a webpage on transfer of technology issues for the benefit of producers in developing countries. Other Members expressed interest and asked for more detail on the contents of this website. They requested India to submit this in writing for further consideration in the Working Group.

4  FUTURE WORK

4.1.  Pursuant to the mandate contained in paragraph 37 of the Doha Ministerial Declaration, and its subsequent affirmation, in paragraph 43, by Ministers in the Hong Kong Declaration, Members have continued their examination of the relationship between trade and transfer of technology and have also considered possible recommendations on steps that might be made within the mandate of the WTO to increase flows of technology to developing countries. The ongoing work has covered a number of issues and has helped to enhance Members' understanding of the complex nexus between trade and transfer of technology. Although progress has been made, more work remains to be done. In view of this, Members recommend that the Ministers direct the Working Group to continue its work in order to fully achieve the mandate of the Doha Ministerial Declaration.

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