| I. The Background of Establishing Working Group on Trade and Transfer of Technology at Doha Development AgendaThe impact of technology on economic growth and development is well recognized. As knowledge increasingly becomes a key strategic resource for national economic development, there is a need to identify means to facilitate the transfer of technology to the presently technology-poor developing countries. There is a real danger that in the "new economy" the old division of haves and have-nots will be replaced by a division between "knows and know-nots" with developing countries permanently locked into an unequal trade and economic relationship with developed countries. This is a major challenge to the international trading system, which should effectively address the issue of transfer of technology to developing countries to ensure that they become equal partners in the global efforts for world prosperity. The Marrakech Agreement recognizes the need for special efforts designed to ensure that developing countries, and particularly the least developed among them, secure a share in the growth in international trade commensurate with the needs of economic development. The achievement of this goal is clearly not possible without bridging the technology gap between developed and developing countries.With a view to strengthening developing countries, especially the least developed countries' abilities of organization and production, there are a number of provisions in multilateral trade agreements related to transfer of technology to developing and least developed countries. In most cases, however, such provisions contain only "best endeavours" commitments, and are not mandatory rules. The question that arises is to what extent developing countries benefit from these instruments. The agreement was reached by WTO Members in Doha on a Working Group under the auspices of the General Council to examine 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. II. The Standpoints and Attitudes of WTO Members on the Issue of Trade and Transfer of Technology 1. The standpoints and attitudes of WTO developed membersUnited States: The United States bears up technology should be transferred to developing countries. But one should not forget that technology transfer in the commercial sector depends on both: (a) the objectives and strategies of each enterprise - and governments cannot alter these; and (b) the domestic policy of the beneficiary country (liberalization of investment, implementation of an intellectualproperty right (IPR) system, etc.). The enabling environment (human capital, infrastructure, legal framework, macroeconomic conditions) of host countries is the key element that determines foreign direct investment (FDI) inflows and technology transfer, especially in the least developed countries.The European Communities (EC): The EC welcomes the agreement. The EC wishes to highlight the following channels for consideration: FDI, trade in services, trade in goods, licensing of technology subject to intellectual property rights, government procurement and development co-operation. Among these channels, FDI is a major channel of technology transfer, and an increase in FDI brings more technology, and conditions that stimulate FDI will thus tend to increase technology transfer. For these reasons, the developing countries should improve the conditions to increase FDI flows. Key conditions for FDI are inter alia good governance and stable, transparent and predictable regulatory frameworks, including the protection of IPR.Japan: Japan are actively favour of accelerating technology transfer, in particular to developing countries. There are close relationships between technology transfer and trade, especially trade of advanced machinery and equipment, so developing countries should encourage import of advanced machinery and equipment. It is u... |
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