ITA Expansion

Japan Electronics & Information Technology Industries Association1

January 10, 2013Las Vegas, U.S.A.

Shoichi Inoue General Manager, International Affairs Department

Contents

－　 ITA Expansion 　－i. What is ITA?ii. ITA contribution to global economyiii. ITA contribution to quality of lifeiv. ITA products aid disaster responsev. Products outside current ITA coveragevi. For the swift start of ITA expansion talksvii. 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

0

0.5

1

1.5

2

2.5

3

3.5

4

(trillion:$)

($1.2 trillion

$4.0 trillion

Source: US International Trade Commission

>3 times

ITA product>3 times

Non-ITA product>2 times

1996 2008

ITA contribution to global economy

ITA and non-ITA total trade, 1996-2008

• 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

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20100

10

20

30

40

50

60

70

80

90Mobile cellular subscriptions

19962.5%

201078.6%

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 informationControl Center

Urgent earthquake Alert information Urgent earthquake

Alert information

Urgent earthquake Alert information

Magnitude 5 earthquake will strike in 15 seconds

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

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,

IC ｓ 　 China, Chinese Taipei, EU, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, USA, Vietnam,

CapacitorsChina, Chinese Taipei, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand,

ResistorsChina, Chinese Taipei, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand,

ConnectorsJapan, Malaysia, Philippines, Thailand, Vietnam

InductorsChina, 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 EditingDigital 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

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

*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.”

For the success of ITA ExpansionTalks:15th Anniversary Symposium & APEC Leaders’ Meeting

• 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:ITA Expansion Symposium @ 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

14

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

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