ITA Expansion Japan Electronics & Information Technology Industries Association 1 January 10, 2013 Las Vegas, U.S.A. Shoichi Inoue General Manager, International Affairs Department

Contents － ITA Expansion － i.What is ITA? ii.ITA contribution to global economy iii.ITA contribution to quality of life iv.ITA products aid disaster response v.Products outside current ITA coverage vi.For the swift start of ITA expansion talks vii.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

4 $1.2 trillion $4.0 trillion Source: US International Trade Commission >3 times ITA product >3 times Non-ITA product >2 times ITA contribution to global economy ITA and non-ITA total trade, Trade in ITA products tripled

Asia accounts for 66% of IT exports 5 Source: WTO(2012) “15 years of the Information Technology Agreement” Asia ITA contribution to global economy

ITA contribution to quality of life 6 Source: World Bank (Per 100 people) ・ Access to disaster information ・ Medical services, etc.

7 ITA products aid disaster response Urgent earthquake Alert information Facility C Facility A Facility B Alert information Control Center Urgent earthquake Alert information Magnitude 5 earthquake will strike in 15 seconds

ITA supports global supply chains 8 Mobile phones Signal processing boards Antennas Speakers Keyboard switches Microphones Liquid crystal modules Assembled in Brazil, China, Chinese Taipei, India, Japan, Korea, Malaysia PartsMain 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, IC ｓ 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 Covers Parts Camera modules Batteries Brazil, China, Chinese Taipei, India, Japan, Korea, Malaysia Intermediate commodities

9 Multi- component IC Multi- chip IC Digital Wireless Network Digital Network Digital Media Digital Editing Digital TVs Video cameras/camcorders BD/DVD recorders and players Car navigation systems Product scope of the agreement has not been expanded for the past 15 years. Many new and innovative products are not covered by ITA Products outside current ITA coverage

In March 2011, the global high-tech industry (39 organizations from 17 countries) requested the launch of ITA expansion talks 10 For the success of ITA Expansion Talks: Global Industry Paper For the success of ITA Expansion Talks: Global Industry Paper *As of October 2012, 61 organization have joined the Paper

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 11 （出典）ＷＴＯ事務局 website 。 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.” 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.” For the success of ITA ExpansionTalks: 15th Anniversary Symposium & APEC Leaders’ Meeting For the success of ITA ExpansionTalks: 15th Anniversary Symposium & APEC Leaders’ Meeting

JEITA organized an international symposium for WTO/ITA expansion during CEATEC Japan 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 : ITA Expansion CEATEC For the success of ITA Expansion Talks : ITA Expansion CEATEC

13 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. For the success of ITA Expansion Talks: DIGITALEUROPE, ITI, JEITA Joint Paper For the success of ITA Expansion Talks: DIGITALEUROPE, ITI, JEITA Joint Paper

14 For the success of ITA Expansion Talks : ASSOCHAM Roundtable “Expanding Delhi For the success of ITA Expansion Talks : ASSOCHAM Roundtable “Expanding 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

15 Conclusion Need for WEF’s strong leadership and tangible results of the ITA expansion talks  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.

16 Thank you for your kind attention. Japan Electronics & Information Technology Industries Association