US–China Trade War An Impetus for New Norms on Technology Transfer

Abstract

This article argues that the trade dispute between United States (US) and China should be an impetus for new rules and norms regarding technology transfer at the World Trade Organization (WTO). Technology transfer is a desirable outcome under WTO rules, including the Trade-Related Intellectual property Rights Agreement. However, Trade-Related Aspects of Intellectual Property Rights (TRIPs) have failed to effectively promote and facilitate technology transfer. The problem lies in the nature of the intellectual property rights that TRIPs are intended to protect and enforce. Though necessary, by conferring exclusive rights to its holder, intellectual property rights have the unintended consequences of inhibiting competition and technology transfer. Furthermore, it may impede the transfer of technology from developed countries to developing countries where firms often lack the capacity to further innovate the technology it has acquired. This article proposes new norms at the WTO, in particular the TRIPs and SCM Agreement, to improve its efficacy in promoting and facilitating technology transfer.