H.E. Ambassador Dr Walter Werner

Nepal

12 LDC GROUP PROPOSAL ON THE IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT (IP/C/W/640)

350.   I join the statements delivered by Bangladesh and Chad on behalf of the LDC Group. My delegation wishes to thank the developed country Members who have provided technical and financial supports to the LDCs in the areas of capacity development, trade and economic development. 351.   Article 66.2 of the TRIPS Agreement clearly states that developed country Members shall provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to least developed country Members in order to enable them to create a sound and viable technological base. The provision is obligatory. It is very clearly written and does not bear ambiguous meaning. The three words "shall", "incentives to enterprises" and "LDCs" are very important. 352.   Similarly, the Doha Declaration on TRIPS and Public Health reaffirmed the commitment of developed country Members to provide incentives to their enterprises and institutions to promote and encourage technology transfer to LDC Members. 353.   Since 1995, LDC Members have been continuously raising the concerns about an ineffective implementation of Article 66.2 of the TRIPS Agreement and are requesting for its effective implementation in letter and spirit. The notifications and reports of developed country Members do not provide specific information on the incentives provided to their enterprises and institutions to transfer technology to LDCs. 354.   It is very important to note that Articles 66.1, 66.2 and 67 are linked to each other. If we do not implement Article 66.2 effectively and meaningfully in letter and spirit, the enhanced transition period under Article 66.1 does not yield any outcome. Similarly, Articles 66.2 and 67 have a complementary relationship. The support provided under Article 67 including training, could create the foundation and enabling environment for technology transfer to LDCs as they lack necessary capacity to transfer technology. In this context, effective implementation of Article 66.2 is fundamental. 355.   LDCs, the most vulnerable segment of this august house, are the least integrated into the MTS. Sustainable development depends on mutually reinforcing actions across the social, economic and environmental dimensions of development. The technology transfer could play a significant role in achieving SDGs which are our shared commitments. Without rapidly building up capacities in Science, Technology and Innovation (STI), the goals of eradicating widespread poverty, removing structural constraints and unleashing sustained growth and achieving sustainable development in LDCs could not be achieved. 356.   Finally, once again my delegation acknowledges the efforts and support provided by developed country Members so far. For the better outcome, the continuous dialogue, brainstorming and experience sharing between the LDC and developed country Members could provide specific and better ideas. Such discussions and experience sharing could be supportive in developing a framework or mechanism in technology transfer. Incentives to enterprise or institutions to transfer technology could be tax exemptions, felicitation and recognition to the enterprises and so on. We request developed country Members to consider the LDC proposal on the implementation of Article 66.2 of the TRIPS (IP/C/W/640) and to provide specific reporting.

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