RESTRICTEDWORLD TRADE
ORGANIZATIONWT/WGTTT/W/2
15 April 2002
(02-2051)
Working Group on Trade and Transfer of Technology Original:  English
THE WORKING GROUP ON TRADE AND TRANSFER OF TECHNOLOGY
Communication from  Bangladesh, Cuba, Dominican Republic, Egypt,
Honduras, India, Indonesia, Jamaica, Kenya, Mauritius, Pakistan,
Sri Lanka, Tanzania, Uganda, and Zimbabwe
Transfer of and access to technology is a cross-cutting issue related to the efficient application
of a number of multilateral trade agreements.  The Working Group on Trade and Transfer of
Technology could address some of the imbalances.
A. OBJECTIVES OF THE WORKING GROUP
1. The Doha Ministerial Declaration puts emphasis on two central issues:  (a) the relationship
between trade and transfer of technology;  and (b) possible steps that might be taken, within the
mandate of the WTO, to increase flows of technology to developing countries .  The terms of reference
should address these questions.
2. The Working Group should thus examine and recommend measures that might be taken to
increase flows of technology to developing countries wi th the view to ensure th at the latter participate
and implement more adequately international trade disciplines in the context of the WTO.
3. With the view of addressing the above objectives, the following section suggests terms of
reference for the Working Group under five broad sub-headings:  provisions of the WTO Agreements
that related to transfer of technology;  analytical  work;  identification of areas of possible technical
cooperation; areas where consensus building could be sought;  and cooperation with other
organizations.
B. POSSIBLE TERMS OF REFERENCE
1. Provisions of the WTO Agreements that related to Transfer of Technology
4. Identification of ways and means of taking full advantage of the flexibility existing in the
TRIMS, TRIPS, GATS and other WTO Agreements, with a view to increasing transfer of technology.
5. Identification of home country measures including incentives that encourage transfer of
technology in various modes to developing countries, in particular to the least developed countries,
including promotional measures for building up a sound and viable technological base (Articles 66.2
and 67 of the TRIPS Agreement).
6. Examination of WTO Agreements to identify restrictions that certain provisions may be
creating against transfer and dissemination of technology with a view to making the necessaryWT/WGTTT/W/2
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amendments for facilitating and ensuring the transfer of technology on fair and advantageous terms
and in line with the special and differential treatment provisions.
7. Assessment of the implementation by developed countries of WTO provisions related to
transfer of technology with a view to identifying the needs for appropriate changes or strengthening
of, including possible amendments to these provisi ons in order to ensure that technology flows to
developing countries.
2. Analytical Work
8. Analysis of how new technologies are created, transferred and diffused, for what purposes
and the extent to which developing countries benefit from this process.  Such analysis should identify
the main beneficiaries to existing modes of generating and diffusing new technologies and how the
needs of the developing countries can better be taken into account.  These efforts should also clarify
how countries at different levels of development can acquire commercial technologies and obtainaccess to the scientific and technological knowledge they need, in order to compete more effectively
in the global market.
9. Identification of main patterns in transfer of technology including transfer of technology
through FDI and other channels for the successful diffusion, acquisition and adaptation of both mature
and advanced technologies in order to pin-point best practices and to identify factors, both in homecountry and host country, that hinder or facilitate the transfer of technologies.
10. Cases of successful public/private research initiatives that have effectively facilitated inward
technology transfers and adapted technologies to promote domestic competitiveness.  They should
identify successful means of strengthening national infrastructures for the acquisition of scientific and
technical knowledge and for improving the flow of  technology between the public and private sectors.
11. Identification of intellectual property regimes not covered by TRIPS that could stimulate local
innovation and have impact on transfer of technology.
12. Examination of restrictive practices on transfer of technology imposed by MNEs on their
affiliates and their bearing on TRIMs and Competition policy.
13. Identification of problems of technology transfer, both in home and host countries.
3. Technical Cooperation
14. Support capacity building through specific projects and programmes and by establishing a
scientific and technological infrastructure on a cooperative basis for both the public and private
research facilities so to enable them to assess, adopt, manage, apply and improve technologies.
15. Support transfer of technology and capacity building for enhancing the use of electronic
commerce in developing countries, in particular by their small and medium sized enterprises,
including enhancing the use of information and technologies in the public domain.
16. Support the provision by host countries of an enabling environment for transfer, adaptation
and diffusion of technology, taking into account the following considerations:
(a) Skill formation and technical skills upgrading;
(b) Interaction between research centres and technology support institutions on the one
hand and domestic enterprises on the other;WT/WGTTT/W/2
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(c) Joint research and technology upgrading efforts by enterprises and Governments;
(d) Encouraging capacity building for assessing, adopting, managing;  and
(e) Applying technologies through inter alia :  human resources development,
strengthening institutional capacities for research and development and programme
implementation, assessments of technology needs, and long-term technologicalpartnerships between holders of technologies and potential local users.
17. The need for transparency of laws, regulations, and practices (including relevant judicial
cases) concerning transfer of technology.
18. Provision of assistance in implementing TRIPS, TRIMS, GATS, and other WTO Agreements
in a manner than enhances the opportunities for effective transfer of technology.
19. Sensitise policy makers to the relationship between trade and technology and the nature and
characteristics of competition, including possibilities for reverse engineering by proper means, forinnovating and inventing around patented inventions, for exploiting patented technologies, and for
protecting local adaptations, improvements, and other forms of innovation.
20. Co-operation in the development of scientific and technological resources, including the
creation and growth of national innovation systems.
21. Develop mechanisms that promote cooperation among relevant national authorities for
controlling anti-competitive practices in technology transfer.
4. Consensus Building
22. Consider measures to prevent practices by technology rights holders or the resort to practices,
which unduly impede the transfer and dissemination of technology.
23. Encourage regional cooperation in establishing appropriate norms and practices that lower
transactions costs of intellectual property systems and enhance technology transfers.
5. International and Intergovernmental Organizations
24. The Working Group should seek inputs from both international and intergovernmental
organizations such as UNCTAD and others with the relevant expertise in the areas of transfer of
technology, including policies for promoting technology transfer, the legal and administrativeframeworks in home countries appropriate for technology transfer to developing countries and the
financing mechanisms necessary to facilitate linkages between trade and technology transfer.
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