Transcript Working Group on Trade & Transfer of Technology (Geneva, 15 March 2012) Capitalizing the work undertaken in the past decade Carlos Rossi (Peru) WGTTT Chairperson 2012

Working Group on Trade &
Transfer of Technology
(Geneva, 15 March 2012)
Capitalizing the work undertaken in
the past decade
Carlos Rossi (Peru)
WGTTT Chairperson 2012
1
THE MANDATE
At the Fourth Ministerial Conference in Doha in November 2001
Minister 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“ (Paragraph
37, WT/MIN/(01)/DEC/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".
WGTTT AT A GLANCE
39 sessions in almost 10 years, since April
2002, average of 4 meetings by year
Relationship between trade and transfer of technology
18 contributions from 6
international organizations,
10 from UNCTAD
2 contributions from the
academic/private sector
initiatives
4 Observers:
UNTACD,
World Bank,
IMF, UNIDO
5 national experiences,
3 from developing
countries and 2 from
developed countries
4 background papers
from the Secretariat
Recommendations on steps that might be taken within the mandate of
the WTO to increase flows of technology to developing countries
9 submissions by members
EXAMINATION OF THE RELATIONSHIP BETWEEN
TRADE AND TRANSFER OF TECHNOLOGY
International Organizations
Public Sector /
National Experiences
1.
2.
3.
4.
5.
Brazil (2002) WT/WGTTT/M/2
China (2002) WT/WGTTT/M/2
Canada (2002) WT/WGTTT/M/3
Switzerland (2003) WT/WGTTT/W/7
and (2010) WT/WGTTT/M/31 y 32
Philippines (2007) WT/WGTTT/M/20
1.
2.
WTO Secretariat
3.
1.
4.
2.
3.
4.
“Trade and Transfer of Technology”
(2002) WT/WGTTT/W/1
Bibliography (2002)
WT/WGTTT/W/1/Add.1
“A Taxonomy on Country Experiences
on International Technology
Transfers” (2002) WT/WGTTT/W/3
WTO Provisions relating to tech
transfer (2010) JOB/DEV/10
5.
6.
UNCTAD (2002) Presentation of the Investment and Technology
Division; (2003) “Transfer of Technology for Successful Integration
into the Global Economy”; (2004) “Facilitating Transfer of
Technology to Developing Countries: A Survey of Home Country
Measures''; (2005) ”A Case Study on the Electronic Industry in
Thailand" and “Taxation and Technology Transfer: Key Issues”;
(2006) “National Programme for Development of Indian Machine
Tool Industry”, “WIR 2005”, “Salmon Industry in Chile” and “Trends
in Cross-Border Flows of Technology”; (2010) “Technology and
Innovation Report 2010: Enhancing food security in Africa through
science, technology and innovation”
UNIDO (2002) Presentation of the Industrial Promotion and
Technology Branch; (2005) “National Programme for Development
of Indian Machine Tool Industry”; (2006) "Technology Transfer &
Trade: The Toy Industry in India"
World Bank (2002) Presentation of the Development Research
Group; (2008) “Global Economic Prospects: Technology Diffusion in
the Developing World”
FAO (2009) “The Linkage between Technology Transfer and
Productivity Gains in Agriculture”
OECD (2011) “Innovation , Technology Transfer ans STI Cooperation
to adderess Global Challenges”
WIPO (2011) Presentation of the Director General
Academic/Private Sector Initiatives
1.
2.
The Institute for New Technologies of the UN University, UNUINTECH (2002) WT/WGTTT/M/1
4
International Network for Small and Medium Enterprises (INSME),
Italy (2005) WT/WGTTT/M/13
STRUCTURE OF THE INTERNATIONAL DIFFUSION OF
TECHNOLOGY
International competitiveness
Global value chains
Trade
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Trade in intermediate
and capital goods
R&D content of imports
Trade in business and
professional services
Export base
Import competition
Payment for IP, royalties and
licensing fees
IPR regime /
patent system
Shortening of technology life-cycles
Mobility
of human
resources
•
•
Internationalization of R&D
Direct access to technology
(Internet)
FDI
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Vertical FDI
Horizontal FDI
Licensing, joint ventures,
franchising, etc.
Technology content of FDI
FDI in R&D
Corporate developmental
responsability
FDI linkage with SMEs
International coop programs
Exchange of info and coop among patent offices
Aid for trade in capacity building
South-South cooperation
Bilateral taxation treaties and Bilateral investment treaties
Regional Trade Agreements
Multilateral negotiations
5
HOST COUNTRY CONDITIONS/POLICIES/MEASURES
Institutions
•
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•
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•
•
•
•
Human
Capital
S & T System
Economy
•
•
Good governance and institutional support system
Good relationship between IPR institutions and private sector
PPP, sub-contracting and outsourcing
Tax (corporate income tax, import duties, taxation of dividends,
royalties and technical fees, withholding taxes on tech transfer)
R&D incentives, tax exemptions
Tech contracts: exclusiveness for the supply of machinery, use
of competing technologies and stability of taxes, royalties, etc.
•
•
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Appropriate macro-economic environment
Open and efficient functioning of markets
Financial structure and intermediation
Appropriate physical infrastructure
Regulatory framework for innovation
Absorptive capacity and capacity of adaptation to existing technologies
Public funding on R&D in priority areas
Cross-country network of intermediaries comprising provincial research
and innovation organizations
Linkages between academic work and market demands
Early start in new areas of technology (tech positioning)
Human capital and skilled labour
Level and nature of the education system
Management and marketing skills
Training of scientists and technicians abroad
6
HOME COUNTRY CONDITIONS/POLICIES/MEASURES
Installed research base,
concentration of technology
ownership and R&D
Competition policy framework to face structural
changes and global competitive pressures
Incentives and public funding for R&D (grants,
subsidies, tax breaks, etc.), military spending
Government procurement policies as a means
to tech transfer
Institutions
•
•
Industrial program with financial support to local firms planning business activities abroad
Investment in intangibles (trademarks and patents)
•
•
•
•
S&T
System
Economy
High participation in
high-tech global trade
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Specific policies to improve the flow of technology internally
Specific programs for improving innovation capacity
Specific initiatives and programs for technology transfer
Attract technology from abroad (tacit, codified, embodied in
people, goods and services)
Consultation and legislative revision to find a balance
between creators and users of IPR
Integrated/harmonized regulatory regimes with its trading
partners (national standards based on international standards)
BITs and Investment commitments in RTAs and multilaterally
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ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT
BE TAKEN – SUBMISSIONS BY MEMBERS
Bangladesh, Cuba, Dominican Rep., Egypt, Honduras, India, Indonesia,
Jamaica, Kenya, Mauritius, Pakistan, Sri Lanka, Tanzania, Uganda and
Zimbabwe (2002) WT/WGTTT/W/2
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Examine WTO provisions, promotional measures, restrictions, assessment of
implementation by developed countries
Analysis, identification of channels (FDI, public/private research initiative, etc.),
problems for tech transfer in home and host countries
Comprehensive technical cooperation
Consensus building to prevent practices which impede tech transfer and encourage
regional cooperation to lower costs of IP
Inputs from international organizations on policies for promoting tech transfer, legal
and administrative frameworks and financing mechanisms
Cuba, Egypt, Honduras, India, Indonesia, Jamaica, Kenya, Mauritius,
Pakistan, and Zimbabwe (2002) “Provisions Relating to Transfer of
Technology in WTO Agreements" WT/WGTTT/3 and Rev.1.
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•
Examine the extent to which the existing WTO provisions relating to tech transfer had
been effectively implemented
Difficulties experienced in utilizing these provisions
ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT
BE TAKEN – SUBMISSIONS BY MEMBERS
EC (2002) WT/WGTTT/1
Related WTO provisions
-Definition of technology transfer
-Channels for transfer of technology:
•FDI (depends on good governance, predictable regulatory
framework, protection of IPR, anti-competitive practices)
•Trade in services (commercial establishment)
•Trade in goods (equipment and machinery)
•Licensing of technology subject to IPR (IPR system in host
country); access to free technological information
•Government procurement
•Development coop programs in technology dependent
sectors
•Multilateral Environment Agreements
-Assessment of effectiveness of channels
-Identification of factors for the creation of a regulatory
environment conducive to tech transfer, or which in their
absence constitute disincentives to tech transfer
Trade Facilitation, Capacity
building, Competition policy
GATS Mode 3
NAMA
TRIPS
AGP
CTD
CTE
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ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT
BE TAKEN – SUBMISSIONS BY MEMBERS
EC (2003) WT/WGTTT/W/5
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Identification of the components of the concept of transfer of technology and the
ways in which those components complement and interact with each other
Types of technology and ways in which could be acquired
Important role of the private sector, effective IPR protection regimes and the
absorptive capacity of host countries
Incentives that could promote tech transfer to LDCs
Cuba, India, Indonesia, Jamaica, Kenya, Nigeria, Pakistan, Tanzania,
Venezuela and Zimbabwe (2003) WT/WGTTT/W/6 and Add.1
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Examine WTO provisions to make them operational and meaningful for
increasing flows of technology and promote development
Examine WTO provisions which have the effect of hindering tech transfer and
make recommendations to mitigate their negative effects
Restrictive practices adopted by MNES in the area of tech transfer
Impact of tariff peaks and tariff escalation in developed countries
Difficulties faced by developing countries in meeting the standards set by WTO
agreements due to the lack of required technology
Expanding global technological exchange and special treatment for developing
countries
Examine ways and means to strengthen developing countries tech base
ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT
BE TAKEN – SUBMISSIONS BY MEMBERS
Cuba (2005) WT/WGTTT/W/9
Design adequate WTO provisions making them operational and meaningful
for increasing flows of technology and promote the development of
developing countries
Examination of WTO provisions which have the effect of hindering tech
transfer to developing countries and come up with recommendations as to
how to mitigate the negative effects of these provisions
•
•
Cuba (2006) WT/WGTTT/W/12
•
Transfer on preferential terms to the developing and LDCs the equipment
and technology needed to apply TBT and SPS requirements
ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT
BE TAKEN – SUBMISSIONS BY MEMBERS
India, Pakistan & Philippines (2005) WT/WGTTT/W/10 and 2 room
documents (2006 and 2007)
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Technical assistance under TRIPS agreement
Guidelines to incentivise MNEs to perform S&T in host countries, grant
licences and adopt practices that permit rapid Tech transfer
Competition policies to monitor and discourage the use of restrictive
practices and to adopt better practices. Licensing, subcontracting, and
support firms to access tech info and contracts
establish mechanisms to acquire necessary technology to achieve
international standards
Mobility of scientists, technologists and technicians under GATS, develop
S&T agreements to promote international scientific and industrial R&D
collaboration
Exchange of information on investment and technology-related incentives
and best practices in Tech transfer
Cooperation among patent offices. Full use of Art.29 of TRIPS which
requires patent applicants to indicate the best mode for carrying out the
invention to enhance the practical value of a patent as a source of publicly
available tech info
Linkage between Tech transfer and temporary movements of people
TRIPS
Mode
IV
GATS
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ANY POSSIBLE RECOMMENDATIONS ON STEPS THAT MIGHT
BE TAKEN – SUBMISSIONS BY MEMBERS
India, Pakistan & Philippines (2008) “Facilitating Access to Information
on Appropriate Technology Sourcing” Room doc. 14/07/08
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Technology sourcing: steps to avoid “asymmetric information” which hampers market
transactions in technology transfer, match those who possess the necessary technologies with
those who need them
A specialized webpage including: developed countries report to the TRIPS Council on
incentives that they are offering to their firms and institutions to facilitate tech transfer to
LDCs in fulfilment of Articles 66.2 of TRIPS Agreement; information from countries, private
firms and public institutions on specific technology needs and/or technology offers; links to
the annual reports, publications, regulatory standards and other patent information of key
global IP offices (USPTO and EPO) and WIPO to promote the use of patented information or
knowledge in R&D; information on how to access and interpret patented knowledge; links to
IP clearinghouses and other databases and institutions that specifically develop and offer
technologies for developing countries on more favourable terms in their areas of
specialization; successful technology acquisition programmes; and, information on contracts
including reasonable royalty rates, conditions for buyers and sellers and clauses to help
encourage local technological development
Sharing of experiences/ studies with other international organisations and Members that have
undergone rapid technological development
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PROVISIONS RELATING TO TRANSFER OF TECHNOLOGY IN
WTO AGREEMENTS
•
Trade-related Aspects of Intellectual Property Rights (TRIPS) 7, 8.2, 40, 66.2
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Agreement on the Application of SPS Measures
Agreement on Technical Barriers to Trade (TBT)
General Agreement on Trade in Services (GATS)
Gats Annex on Telecommunications
Agreement on Subsidies and Countervailing Measures
Agreement on Agriculture
•
Ministerial Decision on measures concerning the possible
negative effects of the reform program on LDCs and NFIDCs
9
11
IV, XIX
6.c, 6.d
8.2
6, Annex 2 (2, 11)
3.iii) - Art.16 AoA
With the exception of 4 WTO bodies, all other bodies had reported that they had not
done any substantive work in relation to trade and transfer of technology since their last
reports in 2002. Only the Committee on Trade and Environment, the Committee on SPS
Measures, the Committee on TRIMS and the Council for TRIPS had reported that some
work on the issue of technology and its transfer had been undertaken. Most notably,
the Council for TRIPS had reported on its continuous work on the ''Implementation of
Article 66:2'' of the TRIPS Agreement (2010). Members requested the developed
country Members to present their impact assessment on the extent to which transfer of
technology to LDCs had actually contributed the increase in LDC's trade.
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OTHER INTERNATIONAL AGREEMENTS WITH PROVISIONS
RELATED TO TRANSFER OF TECHNOLOGY
Montreal Protocol on the Ozone Layer
Art. 10 Financial Mechanism, 10(a) Technology Transfer
Basel Convention on the Control of Transboundary
Movements of Hazardous Waste and their Disposal
Convention on
Biological Diversity
Climate Change Convention
and its related Kyoto Protocol
Agenda 21 "Transfer of environmentally-sound
technology, cooperation and capacity building"
Chapter 34
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