WTO

1
METI (Ministry of Economy, Trade and Industry)
JAPAN
For further development in the Computer Related
Services(For Seminar on Liberalization in CRS at
WTO)

2005 September 28 Mr.Akito Toi
2
Outline of Presentation
METI Japan
1. Global Development in IT Industry2. Global
Development in Computer Related Service
3. Development in Asia4. Next Step


3
1.1. Global Development in IT Industry
METI Japan
Information service supports various industries,
as a basement in the modern society, adding
values for various products and services.
Automobile Industries
IT Industries
Bio-Industries
Financial Industries
E- Government
Adding value for various products and services

Information Service (Computer related
Service) ( Business application, computer
software etc.)
(30)
Hardware (Computers?Mobile Phones etc.)
(18)
IT infrastructure such as Broad band networks
Physical Basis
(53)
Information Services play an important role for
development of various industries.
(Note Percentages are based on the world wide
ICT market in OECD Information technology
Outlook 2004)
4
1.2. Global Development in IT Industry
METI Japan
Problems
Effect
CRS
Company A (Transportation Machinery)
- 24 hour operation - More transparency among
sectors/countries - Shorten development periods
for new cars (17 ?10 months)
Inefficient product development
sectors/countries
United systems ( sectors/ countries)
Company B (Construction)
Acceleration of speed (process, decision makings)
- Speedy decision making (3
weeks ? 3 days) - Procedures for Contract
( 3 days ? Immediate) -
Administration cost ?almost 0
Information sharing among project members
Company C (Office Machine)
Rising cost for Electronics parts (short
life-cycle)

• Information sharing/CAD, SCM
• Suitable distribution of parts

- Number of parts ( 35,000?
3,000) - Number of stocks (Rotation
2.9 ?2.2 month)
Company D (Hotel)
Dependence on Travel Agency

• Sales opportunity via-home
• page ( 42.8)

Home Page set up
5
1.3. Global Development in IT Industry
METI Japan


6
2.1 Global Development in Computer Related
Service
METI Japan
MARKET SIZE Rapidly Growing CRS Market
7
2.2 Global Development in Computer Related
Service
METI Japan
Computer and Information (Export)
8
3.1. Development in Asia
METI Japan
Rising trend of Export (Export blue)
China
India
(Source Nikkei Computer and other statistics
compiled by METI)
9
3.2. Development in Asia(Other market)
METI Japan
Vietnam
(source) Nikkei Solution Business 2004.11.15
10
3.3. Development in Asia
METI Japan

• What Japan is doing.
• Maintain Liberal regime for CRS (Full commitments
  in GATS)
• As a result, major IT companies, including Oracle
  Corp, SAP, .have an office in some manner In
  Japan.
• For Business Solution services, close
  communication between venders and users are one
  of the factor for success.
• As Japanese overseas investment by manufacturing
  industries increases, more liberal commitment is
  necessary.

Foreign Investment in Japan (Software
Industry) Cases
11
4.1 Next Step
METI Japan

• Development of IT industries and cross border
  trade enable the rapid economic growth to both
  the developed countries and developing countries.
• It takes place at manufacturing industries,
  financial industries, emerging new services etc.
• Therefore we need to accelerate this trend by
  adopting various measures such as
  
  - technology cooperation
  - development of
  human resources
  - elimination of trade tariffs and other
  barriers etc.
• Industries also consider business environment of
  each country.

12
4.2 Next Step (Proposal)
METI Japan
?Acceleration of WTO/CRS negotiation is necessary

• We need to accomplish ambitious and rapid
  achievement in CRS, in order to meet the quick
  pace of the industry dog year in the IT world.
• In this context, there is a good precedent in
  the IT sector ITA (Information Technology
  Agreement) agreed in 1996. Liberation of large
  number of tariff rate realized more open market
  in almost all IT products (97 of the world
  tariffs were liberalized)

?Proposal
To proceed negotiation as follows. Mode 1-3 full
commitments of free Market Access, National
Treatment of computer and related
services, Commitment CPC 84
(2-digit basis) Mode 4 To be dealt with under
Horizontal Commitments
Why dont we develop CRS version of ITA?
13
4.3 Next Step (Proposal)
METI Japan
Simplified messages to business
14
To Close
METI Japan
For the Win-Win game

Thank you.