Minutes - TRIPS Council - View details of the intervention/statement

H.E. Ambassador Dr Walter Werner
Chad on behalf of Least-developed countries
12 LDC GROUP PROPOSAL ON THE IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT (IP/C/W/640)

297.   I am making this statement on behalf of the LDC Group. The LDC Group submitted document IP/C/W/640 with a view to facilitating discussions with developed countries on the manner in which implementation of Article 66.2 of the TRIPS Agreement could be improved. The Members have preliminary talks on this submission at the February meeting of the Council. The statement is that the contribution with a view to having a more detailed discussion on the above-mentioned submission, it does not address the issue of meaning of technology transfer. Indeed Article 66.2 of the TRIPS Agreement is a very important and substantive provision for LDCs and the Group here would like to emphasize that the links between the objective for LDCs to create a sound and viable technological base within the meaning of the provisions of Article 66.1 of the TRIPS Agreement and the provision according to which developed country Members must provide incentives to enterprises and institutions to promote and encourage technology transfer to LDCs according to Article 66.2. That is why the LDC Group would like to invite developed countries to find appropriate ways to operationalize Article 66.2 in accordance with the letter and spirit of the provision. The incentives should include the establishment of an environment that will allow for technology transfer to be absorbed and secured, and direct measures to ensure the effective and voluntary realisation of technology transfer. The consequence will contribute to the development of a sound and viable technological base and so to the strengthening of the production and export capacity of LDCs. 298.   The LDC Group had several bilateral meetings with developed Member countries that reported under Article 66.2. Most of these consultations gave us ideas on which the Room Document that we are distributing today is based (document RD/IP/24). The LDC Group would like to emphasize that it would be useful to have an indicative list of what could help notifications, and provide clarifications to stakeholders in LDCs. The LDC Group has already distributed this list that is a non-exhaustive list, with some Members, partners, among developed countries. In compiling the list we based ourselves upon some of the elements of developed country Members that we considered reflected the mandate according to which incentives should be given to enterprises and institutions on their territories. We added others that would help to live up to the letter and spirit of Article 66.2 with regard to the meaning of the incentives. We hope that this list could form a basis for a for a discussion within the TRIPS Council, or for a decision in the TRIPS Council. The illustrative list contains the following elements:  The incentives to invest in enterprises that propose technology transfer for equipment and environmentally friendly methods for LDCS.  Systems that would provide coupons to enterprises and institutions on the territory of the developed country to acquire inputs if the project of the enterprise or institution includes technology transfer to LDCs.  A fund that would be created to stimulate investment in low-carbon emission technologies in order to contribute to the objectives and development strategies of LDCS and in the context of calls for tenders of developed countries' governments to the benefit of LDCs.  A rating system could be used give additional points to the total score if the tender includes a technology transfer plan, including one that would, for instance, employ local experts in LDCs.  Issue government technology licences prepared in the context of research and development projects financed by government funds to support technology and innovation in LDCs.  Tax exemptions for enterprises of the developed country territory if the technology is transferred to LDCs.  Technology transfer or right to transfer to LDCs when the project financed by the government of the developed country generates technologies during the implementation of a project in a LDC.  Subsidies for risk insurance provided to projects based on technology in LDCs.  Development of industrial cooperation programmes between the enterprises of developed countries and LDCs in order to strengthen the technological absorption capacities and technology transfer capacity and knowledge and know-how necessary for industrialisation, economic diversification and structural transformation of LDCs. 299.   The LDC Group looks forward to constructive discussions within the TRIPS Council with a view to making a decision based on the proposal of the LDC Group.

39.   The Chair said that the Central African Republic, on behalf of the LDC Group, had requested the inclusion of the agenda item "LDC Group Proposal on the Implementation of Article 66.2 of the TRIPS Agreement". Reference had been made to an earlier communication from the LDC Group, on the same topic, that had already been introduced at the Council's last meeting (circulated in document IP/C/W/640). As requested by Bangladesh on behalf of the LDC Group, he had also facilitated an informal meeting between representatives from the LDC Group and developed country Members, which had taken place the previous week. Those initial discussions of the LDC Group Proposal had focused on the incentives needed to encourage companies to transfer technologies to LDCs and on the reporting mechanism. They had been very constructive.
40.   As follow up to that initial discussion, the LDC Group had also made available an illustrative list of incentives for consideration by Members. Printed copies of the room document RD/IP/24 had been made available for delegations in French and English.
41.   The representatives of Chad, on behalf of the LDC Group; Bangladesh; the United States; India; Norway; New Zealand; the European Union; Canada; Australia; Switzerland; Japan; Brazil; and Nepal took the floor.
42.   The Chair said that he would continue to facilitate consultations amongst Members to find possible solutions.
43.   Council took note of the statements made.
IP/C/M/89, IP/C/M/89/Add.1