ITA Expansion January 10, 2013 Las Vegas, U.S.A. Shoichi Inoue General Manager, International Affairs Department Japan Electronics & Information Technology Industries Association 1 Contents - ITA Expansion - i. ii. iii. iv. v. vi. vii. What is ITA? ITA contribution to global economy ITA contribution to quality of life ITA products aid disaster response Products outside current ITA coverage For the swift start of ITA expansion talks Conclusion 2 What is ITA? • ITA formed in 1996 to eliminate duties on IT products • ITA 75 member countries and regions 97% of trade of IT products • ITA contributes to an advanced information society, improves myriad conveniences in our daily lives, and spurs growth and innovation 3 ITA contribution to global economy • Trade in ITA products tripled $4.0 trillion (trillion:$) 4 ITA and non-ITA total trade, 1996-2008 >3 times 3.5 3 2.5 2 $1.2 trillion ( 1.5 1 0.5 0 1996 2008 ITA product >3 times Non-ITA product >2 times Source: US International Trade Commission 4 ITA contribution to global economy • Asia accounts for 66% of IT exports Asia Source: WTO(2012) “15 years of the Information Technology Agreement” 5 ITA contribution to quality of life (Per 100 people) Mobile cellular subscriptions 90 2010 78.6% 80 70 60 50 40 30 20 10 1996 2.5% 0 Source: World Bank ・ Access to disaster information ・ Medical services, etc. 6 ITA products aid disaster response Magnitude 5 earthquake will strike in 15 seconds Urgent earthquake Alert information Facility A Alert information Control Center Urgent earthquake Alert information Facility B Facility C Magnitude 5 earthquake will strike in 15 seconds Urgent earthquake Alert information Urgent earthquake Alert information 7 ITA supports global supply chains Parts Mobile phones Intermediate commodities Liquid crystal modules Parts Main production country Liquid crystal panels China, Chinese Taipei, Japan, Korea, Singapore Printed circuit boards China, Chinese Taipei, EU, India, Japan, Korea, Malaysia, Mexico, Singapore, Thailand, USA, Vietnam, ICs China, Chinese Taipei, EU, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, USA, Vietnam, Capacitors China, Chinese Taipei, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, Resistors China, Chinese Taipei, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, Connectors Japan, Malaysia, Philippines, Thailand, Vietnam Inductors China, Chinese Taipei, Japan, Korea, Malaysia, Philippines, Thailand, Vietnam Signal processing boards Camera modules Brazil, China, Chinese Taipei, India, Japan, Korea,Malaysia Assembled in Speakers Brazil, China, Chinese Taipei, India, Japan, Korea, Malaysia Microphones Batteries Keyboard switches Covers Antennas 8 Products outside current ITA coverage • Product scope of the agreement has not been expanded for the past 15 years. • Many new and innovative products are not covered by ITA Video cameras/camcorders Products outside current ITA coverage Multi- Multichip IC component IC BD/DVD recorders and players Digital Network Digital TVs Digital Media Car navigation systems Digital Editing Digital Wireless Network 9 For the success of ITA Expansion Talks: Global Industry Paper • In March 2011, the global high-tech industry (39 organizations from 17 countries) requested the launch of ITA expansion talks *As of October 2012, 61 organization have joined the Paper 10 For the success of ITA ExpansionTalks: 15th Anniversary Symposium & APEC Leaders’ Meeting • 14 May 2012, Symposium on the 15th Anniversary of ITA • Dr. Chubachi (JEITA Chair) provides keynote speech • 15 May 2012: Informal talks set to begin on expanding the Information Technology Agreement • September 8-9, 2012, APEC ECONOMIC LEADERS' MEETING, Vladivostok, Russia “We welcome the ongoing work to expand the product coverage and membership of the WTO Information Technology Agreement (ITA) and instruct our officials to work in earnest in order to swiftly achieve a good outcome of the negotiations.” 11 (出典)WTO事務局website。 For the success of ITA Expansion Talks: ITA Expansion Symposium @ CEATEC • JEITA organized an international symposium for WTO/ITA expansion during CEATEC Japan 2012. • JEITA Chair Dr. Chubachi expressed his expectations for ITA expansion. • Speakers from DIGITALEUROPE, ITI and JEITA called strongly for ITA expansion and released a Joint Paper. 12 For the success of ITA Expansion Talks: DIGITALEUROPE, ITI, JEITA Joint Paper • On October 12, Dr. Chubachi directly handed the Joint Paper by DIGITALEUROPE, ITI and JEITA to WTO Director-General Mr. Lamy, who was visiting Japan. 13 For the success of ITA Expansion Talks: ASSOCHAM Roundtable “Expanding ITA” @New Delhi ・20 Dec 2012, ASSOCHAM Roundtable “Expanding ITA” , supported by JEITA and global major IT companies ・Mr. Chihara , Chairman of JEITA Trade Policy Committee, provides speech for expanding the ITA 14 Conclusion The ITA has contributed to the advance of the global economy, higher standards of living and innovation. ITA product coverage needs to be expanded in line with technological advance and regularly updated. ITA expansion would benefit all countries via global supply chains. Need for WEF’s strong leadership and tangible results of the ITA expansion talks 15 Thank you for your kind attention. Japan Electronics & Information Technology Industries Association 16