   
  
IP/C/W/668  
 
1 October 2020  
(20-6729) Page: 1/5 
Council for Trade -Related Aspects of  
Intellectual Property Rights  
  Original: English /French  
 
  
EXTENSION OF THE TRANSITION PERIOD UNDER TRIPS ARTICLE 66.1 FOR  
LEAST DEVELOPED COUNTRY MEMBERS  
COMMUNICATION FROM CHAD ON BEHALF OF THE LDC GROUP  
1.  Least developed countries (LDCs) represent the poorest and weakest segment of the international 
community, characterized by constraints such as low per capita income, low level of human 
development, and economic and structural handicaps to growth that limi t resilience to 
vulnerabilities.1  
2.  LDCs continue to face many difficulties in reaching their development goals, even as the period 
for implementing the Istanbul Programme of Action for the Least Developed Countries for the Decade 
2011-2020 adopted by the Fourth UN Conference on the least developed countries , comes to an 
end.  
3.  The United Nations Secretary General has observed that "…the least developed country group as 
a whole, which comprise 13 % of the world 's population, has not succeeded in combating pov erty 
through high rates of economic growth, achieving structural transformation and building productive 
capacity, nor through increasing its global share of exports. The high degree of vulnerability from 
which the least developed countries suffer, both to economic and climate shocks, has caused 
significant setbacks to progress towards sustainable development and the achievement of the 
Sustainable Development Goals. Declining commodity prices have diminished the value of exports 
and foreign currency earnings , exacerbating debt burdens, while natural hazards, especially 
climate -related phenomena such as hurricanes, cyclones, flooding, drought and landslides, have 
caused devastating loss and damage to lives, livelihoods and infrastructure. "2  
4.  The COVID -19 pand emic has further exacerbated the challenges that the LDCs continue to face. 
The United Nations Department of Economic and Social Affairs in its analysis concludes that 
"COVID -19 threatens to have devastating consequences in LDCs. Health systems may be unab le to 
cope with a precipitous increase in infections and these countries lack the resources to cope with the 
socio-economic consequences of lockdowns around the world. Unless bold policy actions are taken 
by the international community, achieving the Susta inable Development Goals (SDGs) by the 2030 
deadline will likely slip out of reach ".3 The lockdown and slump in global demand has particularly 
impacted LDCs that are dependent on export s of finished products.  
5.  It is evident that the COVID -19 pandemic will have far -reaching implications for the global 
economy and especially for LDCs including those on the path to graduation. Exports of LDCs are 
anticipated to be severely affected, primary commodities prices are i n decline, supply chains 
 
1 The Istanbul Programme of Action for the Least Developed Countries for the Decade 2011 -2020 
adopted by the Fourth UN Conference on the Least Developed Countries.  
2 Implementation of the Programme of Action for the Least Developed Countries for the Decade 2011–
2020  
Report of the Secretary -General (A/75/72 –E/2020/14)  
3 UN/DESA Policy Brief#66: COVID -19 and the least developed countries  IP/C/W/668  
 
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  disrupted, and the tourism industry largely at a standstill.4 There is also strong likelihood of a balance 
of payments crisis in LDCs.5  
6.  A viable technology base is a crucial driver of productivity growth especially in the presen t era of 
digital economy. If developed and harnessed properly, it has great potential to change the 
development landscape of LDCs. However, LDCs have often not been able to move beyond outdated 
technologies that characterize their production processes and outputs. Acquiring new technologies 
and building domestic capacity and a knowledge base to be able to fully utilize acquired technologies 
and promoting indigenous capacity on a sustainable basis for research and development are needed 
to enhance productive  capacities in least developed countries.6  
7.  Importantly, LDCs lag significantly far behind in science, technology and innovation. Between 
2011 and 2017, LDCs ' research and development expenditure as a share of GDP was 0.6 % or less, 
compared with more advanced economies, which have a value of approximately 2 % of their much 
larger GDP.7 If the current trend continues, LDCs risk being left further behind, given t he increasing 
role of innovation and technology in the economic activity in the present day.8  
8.  The lack of domestic financial resources, high debt levels, and fragile health system presents a 
crucial challenge for the LDCs. What has emerged as a health cr isis in the short term may well have 
far-reaching impacts on education, human rights, employment, food security, and economic 
development in the long term. Notwithstanding the health impacts, with commodity market turmoil, 
the pandemic presents a major and  unprecedented economic crisis for LDCs. Oil, minerals, food and 
other commodities account for more than 70% of merchandise export s from LDCs9. The pandemic 
has undeniably pushed the LDCs out of the progress track and these countries will need much longer  
duration only to regain their current state of development. They will need to redesign many of their 
priorities to restart their journey. In the near future, implementation of TRIPS provisions will be 
much beyond the capacity of the LDCs.   
9.  Developing a v iable technological base is a long -term process. LDCs need a continuing exemption 
from the Agreement on Trade -Related Aspects of Intellectual Property Rights ( "TRIPS Agreement ") 
in order to be able to grow economically viable industrial and technological s ectors, to consolidate 
capacity, and to work their way up the technological value chain. To overcome the difficulties 
confronting LDCs, magnified manifold by the COVID -19 crisis, LDCs need maximum policy space 
inter alia  to access various technologies, edu cational resources, and other tools necessary for 
development and to curb the spread of COVID -19 pandemic. Most intellectual property (IP) - 
protected commodities are simply priced beyond the purchasing power of least developed countries.  
10.  Article 66.1 of t he TRIPS Agreement accorded least developed country Members a ten -year 
exemption from most obligations under the TRIPS Agreement in view of the special needs and 
requirements of the least developed country Members, their economic, financial and administrat ive 
constraints and their need for flexibility to create a viable technological base. Since then this 
exemption has been renewed on two occasions. On 29 November 2005, a 
TRIPS  Council  decision  (IP/C/40) extended this general transition period until 1 July 2013. 
Subsequently on 11  June 2013, TRIPS Council decision (IP/C/64) renewed the transition period until 
1 July 2021.   
11.  Least developed countries continue to face serious economic, financial and administrative 
constraints and are still struggling with vari ous challenges to uplift the socio -economic conditions 
with very limited capacities. Such a situation is restricting them to divert resources from other areas, 
 
4 UN/DESA Policy Brief#66: COVID -19 and the least developed countries  
5 UN/DESA Policy Brief#71: COVID -19 pandemic deals a huge blow to the manufacturing exports from 
LDCs.  
6 The Istanbul Programme of Action for the Least Developed Countries for the Decade 2011 -2020 
adopted by the Fourth UN Conference on the least developed countries .  
7 Implementation of the Programme of Acti on for the least developed countries for the Decade 
2011-2020  
Report of the Secretary -General (A/75/72 –E/2020/14)  
8 Implementation of the Programme of Action for the least developed countries for the Decade 
2011-2020  
Report of the Secretary -General (A/7 5/72–E/2020/14)  
9 UN-OHRLLS: World 's most vulnerable countries lack the capacity to respond to global pandemic; 
http://unohrlls.org/covid -19/ IP/C/W/668  
 
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  where there is utmost necessity to improve the socio -economic condition of their people. The COVID-
19 pandemic has further exacerbated the situation in those countries. Article 66.1 provides that the 
Council for TRIPS "shall, upon duly motivated request by a least  developed country Member, accord 
extensions of this period. " Since the rationale behind  the transition period under Article 66 is to 
provide  LDCs maximum flexibility  (by exempting them from most TRIPS obligations)  in view of 
their constraints,  special needs and requirements  including a viable technological base,  the need to 
extend the transi tion period will continue to exist so long as  these elements have not been 
addressed.   
12.  Essentially the provision laid down in Article 66.1 acknowledges that the TRIPS Agreement may 
not be conducive to  the social and economic circumstances of LDCs and that LDCs need  to have 
policy space and flexibility to  address their development challenges and to  create a viable 
technological base. Moreover, implementation of TRIPS  involves  substantial economic, financial and 
administrative  costs, which  may be untenab le for LDCs.  
13.  It has not been determined when individual LDCs will be able to overcome their economic, 
financial, and administrative constraints that prevent them from applying the provisions of the 
TRIPS  Agreement and from creating a viable technological b ase. Therefore, the transition period 
should remain in force for as long as a country remains a least developed country.  
14.  Sustainable and smooth graduation is a challenge for the LDCs. The 2016 UNCTAD LDC report 
summarises some of the challenges faced by L DCs: "The process of development beyond graduation 
merits much greater attention, even during the pre -graduation period — that graduation itself should 
not be the primary focus of LDCs and their development partners, but should rather be viewed as 
one mile stone in LDCs ' longer -term sustainable development. Graduation does not represent a 
solution to all the graduating country 's development challenges; neither does a new set of challenges 
emerge out of nothing at this point. Rather, the challenges of the pos t-graduation period are a 
continuation of those that characterized the pre -graduation period "10. Addressing this concern in the 
WTO requires  that LDC -specific flexibilities continue to apply after graduation, to be phased out 
progressively. Such approach w ould also be consistent with UN resolutions  59/209 of 2004 and 
67/221 of 2012  as well as the LDCs Buenos Aires Ministerial Declaration of 2017.  In this spirit, the 
LDCs after graduation must be exempted for additional years from applying the provisions of the 
TRIPS Agreement.  
15.  Thus, if the need for developing productive capacities is a permanent need for all LDCs, including 
graduating LDCs, the availability of a sound and viable technological base is indispensable. Hence, 
in order to build a sound and viabl e technological base, all LDCs, including graduating LDCs, would 
need a further extension of the transition period with maximum flexibility.  
16.  Least developed countries hereby submit a duly motivated request for an extension of the 
transitional period (that  ends on 1 July 2021) and request the TRIPS Council to adopt the annexed 
decision text.   
_______________  
 
 
10 The UNCTAD Least Developed Countries Report 2016, p. 126  IP/C/W/668  
 
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ANNEX  
 
EXTENSION OF THE TRANSITION PERIOD UNDER TRIPS ARTICLE 66.1 FOR   
LEAST DEVELOPED COUNTRY1 MEMBERS  
DECISION OF THE COUNCIL FOR TRIPS  
The Council for Trade -Related Aspects of Intellectual Property Rights (the "Council for TRIPS"),  
Having regard to the transition period for least developed country Members provided for in 
paragraph 1 of Article 66 of the TRIPS Agreement (the "Agreement");  
Recalling that this transition period was extended for a second time by the Decision of the 
Council for TRIPS of 11 June 2013 (IP/C/64) until 1 July 2021;  
Recalling that, unless extended, the transition period granted to least developed country 
Members un der Article 66.1 of the Agreement will expire on 1 July 2021;  
Recognizing that Article 66.1 of the Agreement provides that the Council for TRIPS "shall, 
upon duly motivated request by a least developed country Member, accord extensions of this 
period";  
Having regard to the duly motivated request from least developed country Members, dated 
1 October 2020, for a further extension of this transition period, contained in 
document  IP/C/W/668;  
Recognizing the special needs and requirements of least developed cou ntry Members, the 
economic, financial and administrative constraints that they continue to face, and their need for 
flexibility to create a viable technological base;  
Recalling the United Nations General Assembly resolutions 59/209 of 20 December 2004 and  
67/221 of 21 December 2012, inviting all Members of the World Trade Organization to consider 
extending to graduated least developed country Members the existing special and differential 
treatment measures and exemptions available to least developed countr y Members for a period 
appropriate to the development situation of the country;  
Recognizing further  that sustainable graduation of least developed country Members requires 
the continued development of productive capacities by allowing maximum flexibility t o least 
developed country Members;  
Noting with concern the threat to human health, safety and well -being caused by the 
coronavirus disease 2019 (COVID -19) pandemic, which has spread all around the globe, as well as 
the unprecedented and multifaceted effec ts of the pandemic, including the severe disruption to 
societies, economies, global trade and travel and the devastating impact on the livelihoods of people;  
Noting with concern  the reversal of progress towards sustainable development due to the 
long-lasting economic impacts of the COVID -19 pandemic on least developed country Members;  
Recognizing  that individual LDCs are yet to overcome their economic, financial and 
administrative constraints that prevent them from applying the provisions of the Agreement ;   
 
1 As designated by the United Nations  IP/C/W/668  
 
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  Decides as follows:  
1. A least developed country Member shall not be required to apply the provisions of the Agreement, 
other than Articles 3, 4 and 5, as long as the Member remains in the category of least developed 
country and for a period of twelve  years from the date of entry into force of a decision by the 
UN General Assembly to exclude the Member from the least developed country category.   
2. This Decision is without prejudice to the right of least developed countries to seek further 
extensions of the period provided for in paragraph 1 of Article 66 of the Agreement.  
 
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