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METI (Ministry of Economy, Trade and Industry) JAPAN

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　. Outline of Presentation. METI Japan.

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METI (Ministry of Economy, Trade and Industry) JAPAN

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  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. IT Industries Automobile 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) Inefficient product development sectors/countries - 24 hour operation - More transparency among sectors/countries - Shorten development periods for new cars (17 →10 months) 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 don’t 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.

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