David A. Olive General Manager, Fujitsu Limited WITSA Public Policy Chairman

1. WTO Ministerial Meeting in Cancun WITSA Public Policy Meeting Hanoi, Vietnam November 26, 2005 David A. Olive General Manager, Fujitsu Limited WITSA Public Policy Chairman

2. Increasing Trade in IT Goods and Services Organize a WITSA Delegation to Participate in future WTO meeting. The Fifth WTO Ministerial Conference held in Cancún, Mexico in September 2003 to take stock of progress in negotiations. WITSA Delegation attended the Cancun meetings and issued the “Statement on International Trade Negotiations and ICT Products and Services.”

3. WTO Ministerial Meeting in Cancun INTERNATIONAL TRADE NEGOTIATIONS AND ICT PRODUCTS AND SERVICES 5th Ministerial Conference of the WTO Cancun, September 9-14, 2003

4. WTO Ministerial Meeting in Cancun On September 15, global trade talks in Cancun, Mexico ended without an agreement on how to move the trade negotiations forward. The breakdown of talks does not bode well for the future of the Doha Round, the latest series of World Trade Organization (WTO) talks designed to produce a greater liberalization of the global economy. Many worry that the lack of a trade deal is hindering economic growth and reducing confidence.

5. WTO Ministerial Meeting in Cancun • Two issues caused the negotiations to break down: • The developed world would not compromise on the issue of agricultural subsidies. • The developed world called for a liberalization of foreign investment rules to improve transparency, reduce red tape, and open government procurement.

6. WTO Ministerial Meeting in Cancun Developing countries, led by Brazil, China, and India, were unwilling to move forward without meaningful cuts in agricultural subsidies. Moreover, they never fully accepted to the idea of the Singapore agenda : --Trade and Investment --Trade and Competition --Transparency in Government Procurement --Trade Facilitation.

7. WTO Ministerial Meeting in Cancun WTO delegates will be meeting again in Geneva before December 15 to re-direct the negotiations, but it is hard to imagine how they will achieve the goal of a new global trade deal by the end of 2004. Cancún was a missed opportunity and there are lessons to be learned from it that may have great and lasting implications for the world economy and for the multilateral trading system.

8. WTO Ministerial Meeting in Cancun • OBSERVATIONS – FUTURE IMPLICATIONS • Global trade negotiations have become much more complex because of internal changes within countries, the activism of non-governmental organizations, and the structure of WTO negotiations whereby a complete consensus of 146 members is required for the conclusion of trade deals. • This development increases the number of players who can veto trade deals, injects time, organizational, and material burdens into the trade negotiation process.

9. WTO Ministerial Meeting in Cancun • WTO trading rules are still in effect and help provide a solid framework for global commerce. • Frustrated by the lack of progress at the global level, U.S., the Europeans, and Japan have increasingly turned to bilateral and regional negotiations, arenas where the consensus of 146 WTO members is not required.

10. WTO Ministerial Meeting in Cancun Likely a need for a “pause” in the timetable of the Doha Round to re-build momentum in both developed and developing countries . See greater use of plurilateral arrangements, such as the Information Technology Agreement (ITA) This might be a better approach to “new areas” in between larger global trading rounds.

11. WTO Ministerial Meeting in Cancun WITSA will continue to monitor Doha Round developments at the WTO and represent the interests of the global IT industry.

12. WITSA 2003 Global Public Policy Activities “…providing a voice for the global IT industry.” HTTP://WWW.WITSA.ORG David A. Olive General Manager, Fujitsu Limited WITSA Public Policy Chairman