   
  
JOB/TN/CTD/8  
JOB/TNC/121  
 
28 November 2023  
(23-8048) Page: 1/4 
Committee on Trade and Development Special Session 
Trade Negotiations Committee  Original: English  
 
G-90 DOCUMENT FOR THE SPECIAL SESSION OF THE COMMITTEE ON TRADE AND 
DEVELOPMENT (CTD -SS) ON SPECIAL AND DIFFERENTIAL TREATMENT PROPOSALS ON 
ARTICLE 66.2 OF THE AGREEMENT ON TRADE -RELATED ASPECTS OF INTELLECTUAL 
PROPERTY RIGHTS (TRANSFER OF TECHNOLOGY)  
SUBMISSION BY  SOUTH AFRICA  ON BEHALF OF THE ORGANISATION OF AFRICAN, CARIBBEAN 
AND PACIFIC STATES (OACPS), THE AFRICAN GROUP AND THE LDC GROUP  
The following communication, dated 22 November 202 3, is being circulated at the request of the 
Delegation of South Africa on behalf of the Organisation of African, Caribbean and Pacific States 
(OACPS), the African Group and the LDC Group.  
 
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1  INTRODUCTION  
1. The G -90 submits the proposals herein in pursuance of the work directed u nder 
Paragraph 2 of the 12th Ministerial Conference (MC12) of the world Trade Organization 
(WTO) Outcome Document (WT/MIN(22)/24 – WT/L/1135) . This contribution seeks to 
advance work on the review of special and differential treatment (SDT) with a view to strengthening 
them and making them more precise, effective, and operational in line with paragraph 44 of the 
Doha Ministerial Declaration.  
2. The submission of the textual proposals in relation to Article 66.2 of the Agreement on Trade -
Related Aspects of Inte llectual Property Rights (TRIPS Agreement) builds on the G -90 submission 
presented to the Special Session of the Committee on Trade and Development (CTD -SS) contained 
in document JOB/TN/CTD/2 - JOB/TNC/106 as part of the ten Agreement -Specific Proposals (A SPs) 
that the G -90 is tabling for negotiations towards outcomes by latest MC13, in line with and consistent 
with the roadmap that was proposed and presented by G -90 to the CTD -SS and subsequently agreed 
by the committee at its meeting on 20 March 2023.  
2  THE RATIONAL E BEHIND THE G -90 AGREEMENT SPECIFIC PROPOSALS  
3. The G90 recalls the following key principles towards realisation of  SDT provisions that are 
precise, effective and operational, in line with the negotiating mandate:  
• SDT for developing and least devel oped countries is an integral part of the multilateral 
trading system architecture and a treaty embedded right.  
• The mandate under paragraph 44 of the Doha Declaration  and reaffirmed at MC12  is to 
review SD T provisions under the covered Agreements with a view to strengthening them 
and making them more precise, effective and operational.  
4. The G -90 is not seeking blanket exemptions from commitments, but instead seeks to ensure 
effective implementation of existi ng S&D provisions. The proposals aim to operationalize the 
collective commitments of the WTO Membership in several WTO agreements to facilitate the effective 
integration of developing and least developed countries (LDCs) into the multilateral trading syste m.  
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  5. SDT is not confined to transitional periods and capacity building and technical assistance, but 
should be intrinsically embedded in the trade rules to allow policy flexibility to developing countries 
and LDCs to achieve their development objectives , and under conditions of certainty . 
6. The G -90 proposals have been crafted with a view to ensuring stability, predictability and 
transparency in the implementation of existing S&D provisions, and thus strengthening a key area 
of the multilateral trading system  in favour and benefit of the interests of developing countries, 
including LDCs. These proposals are the result of careful and detailed deliberations among G -90 
members, taking into account the needs of members at different levels of development.  
3  THE CASE  FOR STRENGTHENING SPECIAL AND DIFFERENTIAL TREATMENT FOR 
TRANSFER OF TECHNOLOGY UNDER ARTICLE 66.2 OF TRIPS AGREEMENT  
7. Technology and innovation play an increasingly important role in the global economy, and is 
critical to meeting urgent human needs for im proved health, food security, water, energy, among 
others and combating global crises such as health emergencies and climate change. The role of 
technology in development has attracted increased attention in recent years, particularly around the 
question o f how to bridge the technological gap between countries with different levels of industrial 
capacity. The proposal by G -90 affords a real opportunity to developed countries to discharge their 
commitment under Article 66.2; to meaningfully contribute to the  achievement of SDGs and bridging 
the technological divide; and to send a positive signal about the role the multilateral trading system 
can play for the growth and development of least -developed countries.  
8. Article 7 on the Objectives of the TRIPS Agreeme nt states that the protection and enforcement 
of intellectual property rights should contribute to the promotion of technological innovation and to 
the transfer and dissemination of technology, to the mutual advantage of producers and users of 
technologica l knowledge and in a manner conducive to social and economic welfare, and to a balance 
of rights and obligations. Therefore, technology transfer is an integral part of the TRIPS Agreement.  
9. LDCs have attracted special consideration in recognition that TRIP S implementation would put 
an additional burden on them, and their need for maximum policy space to develop their 
technological capacity to meet their development needs. Special consideration is given to LDCs in 
the Preamble and Article 66 of the TRIPS Agr eement. In this context, Article 66.2 of the TRIPS 
Agreement requires developed countries to provide incentives to enterprises and institutions in their 
territories to induce technology transfer to LDC Members, in order to enable them "to create a sound 
and viable technological base".  
10. A core concern of LDCs has been that while some Members have made efforts, the 
implementation of Article 66.2 continues to fall short of the letter and spirit of the TRIPS Agreement 
mandate. In particular some of the policies  and programmes reported by developed countries either 
barely target or do not at all target LDCs. LDCs request that these programmes be made more 
effective in meeting their intended purpose. Therefore, while there is regular reporting by developed 
country  Members on their contributions under Article 66.2 of the TRIPS Agreement, the reality is a 
lack of clarity in notifications on the nature of incentives and whether such incentives sufficiently 
result in technology transfer to LDCs, including whether such incentives truly contribute to the 
creation of a sound and viable technological base in LDCs. Many notifications continue to show that 
recipients of incentives are not LDCs, and where LDCs are identified in the notifications as recipients, 
the incentives d o not result in any transfer of technology. Further in the absence of a common 
understanding of what comprises technology transfer, technical capacity programmes are at times 
passed off as technology transfer.  
11. The LDC group has tabled several specific sub missions to the Council for TRIPS (through 
document IP/C/W/561 dated 6 October 2011, document IP/C/W/640 dated 16 February 2018, 
document RD/IP/24 dated 14 June 2018 and IP/C/W/664 dated 17 July 2020) to further assist 
developed countries in reporting impl ementation of their obligation under Article 66.2 with greater 
clarity and precision.  
12. Operationalizing technology transfer is ever more urgent and relevant today. In addition to 
long-standing structural vulnerabilities, compounded by deficiencies in inter national support, LDCs 
are having to grapple with new and escalating challenges exacerbated by the COVID -19 crisis, 
climate change, shifts in trade dynamics within an ever more digital global economy and swiftly JOB/TN/CTD/8 • JOB/TNC/121  
 
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  evolving technological landscape. Meanwhile the technological disparity between LDCs and both 
developed and other developing nations continues to widen.  
13. The UN Sustainable Development Goals Report of 2023 highlights the stark disparities in 
industrial productivity between rich and poor nations. LDC s are likely to miss their 2030 target of 
doubling manufacturing share of GDP. Manufacturing Value Added (MVA) per capita reached $150 
in LDCs compared to $5,093 in Europe and Northern America. The share of medium -high and 
high-technology production within  total manufacturing remains low in LDCs at 10.6 per cent in 2020, 
compared with 47.7 per cent in Europe and Northern America.  
14. Technology is at the heart of structural transformation for sustainable development. It is the 
backbone of the knowledge and dig ital economy of the 21st century. It is equally crucial to tackling 
today's polycrises impacting LDCs. For instance, the UNCTAD LDC Report 2022, highlights that 
although LDCs have barely contributed to climate change, they are on the front lines of the cli mate 
crisis. Over the last 50 years, 69 per cent of worldwide deaths caused by climate -related disasters 
occurred in LDCs.  
15. Shifting productive capacities of LDCs presently dominated by natural resources -based sectors 
towards value added manufacturing, med ium-and high -tech industries offers the potential for 
sustainable economic expansion, bolstering green growth, and enhancing its resilience to exogenous 
shocks and emerging challenges. Further unless technological capacities are significantly and rapidly 
improved, LDCs are also most at risk of missing out on trade opportunities emerging from the green 
technology revolution, presently dominated by developed countries.  
16. Sustainable Development Goal 17.6 -8 encourages international cooperation on and access to 
technology and innovation, including the promotion, development, transfer, dissemination and 
diffusion of technologies to developing and least -developed countries. A key element of the WTO 
role in this respect is the full and effective operationalisation of  Article 66.2 of the TRIPS Agreement  
17. Some developed Members have argued that it is difficult for governments to ensure technology 
transfer because technology is the subject of private contracts and rights. However, Article 66.2 is 
clear that the responsib ility to provide adequate incentives to motivate technology transfer clearly 
falls on the developed country Members. Importantly, it is a firm legally binding commitment made 
more than a quarter of a century ago by developed countries and not a promise of best-endeavour 
efforts.  
18. Effective measures to transfer technology to LDCs can play a vital role in supporting LDCs to 
upgrade and expand their productive capacities, and fostering sustainable development in these 
countries.  
19. The LDC Group have developed a n illustrative list (document no. RD/IP/24) containing the 
types of programmes that in their view could qualify as incentives or actual transfer of technology. 
Developed country Members are encouraged to use this as a guide to implement their obligation 
under Article 66.2.  
20. An immediate action that can be taken by developed countries to implement their Article 66.2 
obligation is to subject provision of public funds to enterprises and institutions in their territories to 
terms and conditions that will facilit ate transfer of technologies and related know -how to LDCs with 
the aim to create a sound and viable technological base. Further developed country Members should 
establish a publicly owned technology inventory and provide incentives to enterprises and 
institutions in their territories to transfer those technologies and know -how to LDCs, upon their 
request.  
21. WTO Agreements should also be reviewed with the aim to provide more policy space to LDCs 
to develop a sound and viable technological base. The G90 propose s in Annex 1  as decision towards 
addressing these above objectives.  
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  ANNEX 1  
TEXTUAL SUGGESTIONS ON THE AGREEMENT ON SPECIAL AND DIFFERENTIAL TREATMENT FOR 
TRANSFER OF TECHNOLOGY UNDER ARTICLE 66.2 OF TRIPS AGREEMENT  
Having regard to paragraph 2 of Article 66 of the TRIPS Agreement which requires 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 Member s in 
order to enable them to create a sound and viable technological base.  
 
Decides as follows:  
 
(1) Developed countries shall ensure the provision of public funds to enterprises and institutions 
in their territories is subject to terms and conditions that will rapidly facilitate transfer of 
technologies and related know -how to least developed country Members with the aim to 
create a sound and viable technological base in such Members.  
  
(2) Developed countries shall establish and publish an inve ntory of all publicly (wholly or 
partially) owned technologies and shall on request of any least developed country Member, 
transfer those technologies and related know -how, by providing incentives to enterprises 
and institutions in their territories, with the aim to create a sound and viable technological 
base in the requesting least developed country Member.  
 
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