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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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slide1

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 

slide2

Outline of Presentation

METI Japan

1. Global Development in IT Industry2. Global Development in Computer Related Service 3. Development in Asia4. Next Step

slide3

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”)

slide4

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

slide6

2.1 Global Development in Computer Related Service

METI Japan

MARKET SIZE : Rapidly Growing CRS Market

slide7

2.2 Global Development in Computer Related Service

METI Japan

Computer and Information (Export)

slide8

3.1. Development in Asia

METI Japan

Rising trend of Export (Export = blue)

China

India

(Source: Nikkei Computer and other statistics compiled by METI)

slide9

3.2. Development in Asia(Other market)

METI Japan

Vietnam

(source) Nikkei Solution Business 2004.11.15

slide10

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

slide11

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.
slide12

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?

slide13

4.3 Next Step (Proposal)

METI Japan

Simplified messages to business

slide14

To Close

METI Japan

For the Win-Win game…

Thank you.