REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT
The following communication, dated 14 September 2021, from Japan, is being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the TRIPS Agreement (IP/C/28).
1. The Government of Japan has been conducting development cooperation activities in many fields. One of the most important objectives of these cooperation activities is to promote and encourage the transfer of technology. Japan understands that incentives for technology transfer should be interpreted to include a variety of measures such as financial support and business environment support, and that supporting the business environment by strengthening intellectual property protection is one of several effective measures to promote technology transfer by private sectors. Based on this understanding, Japan has provided many incentive measures.
2. With regard to the incentives provided by Japan to enterprises and institutions in Japan, the Government of Japan would like to report on the following activities. The Government of Japan believes that the following activities contribute to raising levels of technological infrastructure in least developed countries (LDCs), which will bring about further technology transfer.
2 ACTIVITIES UNDERTAKEN BY TECHNICAL COOPERATION ORGANIZATIONS
3. Japan International Cooperation Agency (JICA) provides technical cooperation through ODA, through which knowledge and technologies are transferred. The scale of operations for technical cooperation through JICA amounts to approximately JPY 131 billion for FY2020. Some examples of technical cooperation for LDC Members are listed in the Annex.
4. Under the Science and Technology Research Partnership for Sustainable Development (SATREPS) programme, JICA collaborates with Japan Science and Technology Agency (JST) and Japan Agency for Medical Research and Development (AMED), as the funding agencies for science and technology, to promote international joint research projects with developing countries, aimed at resolving global issues. JST/AMED support Japanese research institutions/researchers for the project activities in Japan. JICA supports project implementation in developing countries, such as dispatching Japanese experts (researchers), providing equipment and training of personnel, and other supports related to projects in developing countries in frameworks of ODA technical cooperation. SATREPS projects implemented with LDC members are listed in the Annex.
5. In 2013, JICA launched a new public-private partnership programme, 'Collaboration Programme with the Private Sector for Disseminating Japanese Technology', which aims to promote understanding of Japanese enterprises' technology, knowledge and system and to explore the possibility of using them for the development of developing countries. Some examples of projects implemented under this programme are listed in the Annex. The programme title was revised into 'SDGs Business Verification Survey with Private Sector'.
6. The Association for Overseas Technical Cooperation and Sustainable Partnerships (AOTS) is an organization for human resources development in developing countries to promote technical cooperation through training, expert dispatch and other programmes.
2.2.1 Technical Training
7. Training is conducted for engineers and managers invited to Japan from developing countries as trainees. Its programmes include practical trainings implemented by private companies, which allows trainees to acquire skills and techniques in specific fields. In 2020, AOTS provided technical training courses for engineers and managers of Bangladesh, Cambodia, Lao PDR, Myanmar and
2.2.2 Management Training
8. Training programmes in Japan or the online seminars connected by teleconference system with Japan are conducted for the engineers along with middle and top managers etc. from developing countries to enhance their business or factory management skills and techniques through understanding management concepts and observing actual examples of their usage. In 2020, AOTS provided management training courses for the engineers and managers of Bangladesh, Myanmar, Nepal, Sudan and Tanzania.
2.2.3 Expert Dispatch Programme
9. AOTS experts provide technical guidance and advice to local companies and contribute to improvements in areas such as manufacturing technologies and business management skills. In 2020, technical guidance on various issues was offered to Cambodia.
2.3.1 Dispatching Experts to Improve the Business Environment of Developing Countries in order to Promote Trade and Investment
10. Japan External Trade Organization (JETRO) is engaged in dispatching experts to assist developing countries in the establishment of various rules and institutions necessary to create a business environment conducive to trade and investment. More specifically, in response to requests of private sectors and other entities from developing countries, experts were dispatched in respective industry fields such as automotive parts and molds & dies.
2.3.2 Supporting Developing Countries to Expand Their Exports Industries (OVOP)
11. JETRO helps developing countries to expand their exports to Japan and achieve self-sustainable economic growth, by promoting products from emerging countries. Some projects are implemented as part of 'One Village One Product (OVOP)' campaign, the initiative for supporting and promoting local economies in developing countries. The core activities of the campaign are to exhibit and sell craftworks, accessories, processed foods and other such products at 'OVOP Market'. These are sourced from developing countries in Asia, Africa, Central America and the Pacific and are sold at Narita and Kansai International Airports. This promotion will be carried out to introduce the merits of these products to Japanese customers and to expand sales in the Japanese market.
3 ACTIVITIES IN THE FIELD OF CLIMATE CHANGE
3.1 Climate Finance
12. In 2015, Japan announced 'ACE: Actions for Cool Earth 2.0', which aims to encourage developing countries' participation in the Paris Agreement, and to contribute to significant reduction of GHG emissions by leading the world in further reinforcing development of innovative technologies. This strategy consists of two pillars: the implementation of climate-related assistance to developing countries totalling approximately JPY 1.3 trillion from public and private sources in 2020; and innovation enhancement, a key to take actions against climate change while maintaining economic growth. And Suga Yoshihide, Prime Minister of Japan, announced in June 2021 at the G7 Cornwall Summit that Japan will provide climate finance, both public and private, totalling JPY 6.5 trillion over the next five years, from 2021 to 2025, and that it will further enhance its assistance for adaptation. This is the same high level of its previous commitment up to 2020, JPY 1.3 trillion (equivalent to approximately USD 11.8 billion) per year. This commitment stands out as a sizeable amount among other developed countries. Under this commitment, Japan will continue to lead the global effort to tackle climate change.
13. Japan established and has been implementing the Joint Crediting Mechanism (JCM) in order both to quantitatively evaluate contributions of Japan to GHG emission reductions or removals which are achieved through the diffusion of leading decarbonizing technologies, products, systems, services, and infrastructure among others as well as implementation of mitigation actions particularly in developing countries, and to use them to achieve Japan's nationally determined contribution and for other purposes. As of August 2021, Japan signed this partnership with 17 countries. Japan is promoting the formulation of JCM projects through various supporting schemes, and further accelerating the transfer of leading decarbonizing technologies.
3.3 Other Initiatives relating to Climate Change
14. In addition to the aforementioned JCM, Japan promotes technology transfer relating to climate change through active participation in multilateral initiatives under the UN Framework Convention on Climate Change (UNFCCC), such as the Technology Executive Committee (TEC) and Climate Technology Center and Network (CTCN) for which Japan has made a contribution of USD 12 million as of FY2020. In June 2019, Japan decided 'Long-term Strategy under the Paris Agreement' which proclaims a 'decarbonized society' as the ultimate goal and aims to accomplish it ambitiously as early as possible in the second half of this century. The strategy includes 'Business-led Promotion of International Application, and International Cooperation' as one of pillars. Under this pillar, Japan undertakes, among others, the following activities:
- Promotes international application of decarbonizing technologies together with policy/institutional support and international rule-making;
- Strengthens development and investment of infrastructure that contributes to reduction of CO2 emissions; and
- Builds basis for decarbonized society on global scale.
15. As part of the implementation of the strategy, at an ASEAN+3 Ministers on Energy Meeting in September 2019, Japan proposed inauguration of Cleaner Energy Future Initiative for ASEAN (CEFIA), under the framework of the ASEAN+3. CEFIA aims at developing an environment in which businesses are able to demonstrate leadership in disseminating decarbonizing technologies in and across ASEAN countries. CEFIA is expected to contribute to APAEC (ASEAN Plan of Action for Energy Cooperation), implement CEFIA collaboration roadmap, and accelerate finance, primarily through the implementation of its Flagship Projects.
16. PM Suga announced that Japan would aim to reduce greenhouse gas emissions to net-zero by 2050 and to realize a decarbonized society. On December 2020, Japan compiled “Green Growth Strategy through Achieving Carbon Neutrality in 2050” and created a fund of JPY 2 trillion for providing continuing assistance to companies taking up the challenge of ambitious innovations throughout the next decade and set out a policy for the use of the tax system In addition, PM Suga announced that Japan aims to reduce its GHG emissions by 46% in FY2030 from FY2013 levels, setting an ambitious target which is aligned with the long-term goal of achieving net-zero by 2050. Furthermore, Japan will continue strenuous efforts in its challenge to meet the lofty goal of cutting its emission by 50% (Announced at the 45th meeting of the Global Warming Prevention Headquarters and Leaders Summit on Climate on April 22, 2021).
4 ACTIVITIES IN THE PHARMACEUTICAL SECTOR
17. Since providing good quality medicines forms the foundation of healthcare, it has become an important task to establish a system that can consistently ensure the availability of quality, safe and efficacious medicines in developing countries. Furthermore, the spread of Substandard and Falsified (SF) Medical Products is a significant public health problem, as it not only threatens the health of individual users but also leads to waste of public resources and/or to the risk of spawning drug‑resistant strains of As such, strengthening measures to combat the distribution of SF Medical Products is also of great importance.
18. From these perspectives, the Government of Japan, through JICA and Japan International Corporation of Welfare Services (JICWELS), conducts training programmes in order to develop and reinforce specialist personnel engaged in pharmaceutical regulatory services. Additionally, the Government of Japan in cooperation with the Japanese Pharmaceutical Manufacturers Association (JPMA) contributes to improvement of pharmaceutical regulations through participation in international conferences, and endeavours to disseminate the outcomes to developing countries in the Asian region.
5 ACTIVITIES IN THE FIELD OF INTELLECTUAL PROPERTY RIGHTS
19. In FY2020, the following 11 group training courses for government officials were conducted by the Japan Patent Office (JPO), in cooperation with the Asian Pacific Industrial Property Center (APIC) of the Japan Institute for Promoting Invention and Innovation (JIPII): 47 participants from LDCs in total completed training. In FY2020, the JPO also conducted four group training courses for the private sector, and 13 participants from LDCs completed training.
20. In addition, the Government of Japan has been providing voluntary contributions to WIPO which is a UN organization responsible for the protection of intellectual property throughout the world and the administration of various multilateral treaties, such as the creation of IPR rules, etc. The 'WIPO Funds-in-Trust/Japan' (FIT/JP) was established with these voluntary funds and is used to support WIPO members in the Economic and Social Commission for Asia and the Pacific (ESCAP). In addition, in FY2008, the FIT/JP for Africa and LDCs was founded in order to promote self-sustained economic development utilizing IP in the region. Furthermore, since April 2019, Japan has renewed FIT/JP as the Global Funds, which are used without limiting areas of support. Through these voluntary funds, various projects are implemented every year such as accepting trainees and IPR research fellows, holding symposiums, sending JPO officials, and supporting the automation and modernization of IP offices. In FY2020, as many as five programmes were organized with the Funds-in-Trust Japan Industrial Property Global (FIT Japan IP Global), which had more than 197 participants including those from LDCs.
21. Moreover, JICA provides various IP training programmes by inviting government officials from various countries to Japan. Under such programmes, participants are expected to acquire general and basic knowledge through lectures, discussion, site observation etc. and to share the knowledge among participants from various countries. Courses on Intellectual Property Rights have been held since 2000. The courses had many participants from LDCs including Myanmar, Cambodia, The Gambia, Uganda and Tanzania.