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
１. Global Development in IT Industry
２. Global Development in Computer Related
Service
３. Development in Asia
４. Next Step
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.
E- Government
Financial
Industries
Bio-Industries
Automobile
Industries
IT Industries
…
Adding value for
various products and
services
Information Service (Computer related Service)
( Business application, computer software etc.) (30%)
Hardware (Computers、Mobile Phones etc.)
(18%)
Physical Basis
IT infrastructure such as Broad band networks
(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”)
1.2. Global Development in IT Industry
Problems
Company A
(Transportation
Machinery)
Company B
(Construction)
Company C
(Office Machine)
Company D
(Hotel)
CRS
METI Japan
Effect
Inefficient product
development
sectors/countries
United systems
( sectors/
countries)
- 24 hour operation
- More transparency among
sectors/countries
- Shorten development periods
for new cars (17 →10 months)
Acceleration of
speed (process,
decision makings)
Information
sharing among
project members
- Speedy decision making
(3 weeks → 3 days)
- Procedures for Contract
( 3 days → Immediate)
- Administration cost →almost “0”
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)
Dependence on
Travel Agency
Home Page
set up
- Sales opportunity via-home
page ( 42.8%)
1.3. Global Development in IT Industry
METI Japan
The outline figure of IT-FRENS＆TRACE system
Automated Allocation
of Freights
On line reservation
Explanatory notes
:Dedicated line
:Public line
Client
Information
FRENS
•Emergency
•Container
tracking
Forwarder’s
office
•Date generalize
•Mutual server connection
•Other functions
container allocation management
commander support
forwarder support
“TRACE” support
system monitoring etc.
Wireless Allocation
Management
•Ecology
contribution
Fire
Fire
Wall
Wall
IT-FRENS server
Forklift
server
Internet／IP-VPN
CQIS
server
•Interface with
the date of “ITFRENS” and
“TRACE”
Transmission and direction of
car arrangement and others
by radio MCA or cellular phone
•Allocation
management in
container yard
ＴＲＡＣＥ
GPS
Driver’s
terminal
Intranet
Control center
support terminal
Automatic
Quick
Traceable
Accurate
Cost Reduction
ID tag reader
IT-FRENS terminal
（freight station）
→
Output the pickupdelivery slips and
the container
transfer slips based
on FRENS date
forklift
ID card
Allocation
A‐1
A‐2
B‐1
B‐2
C ‐1
C ‐2
Container yard
ID tag
2.1 Global Development in Computer Related Service
METI Japan
MARKET SIZE : Rapidly Growing CRS Market
Billion $
Africa
1,200
1,000
174
Middle East
156
136
800
126
115
600
102
182
102
316
104
249
189
206
340
Asia-Pacific
283
Eastern
Europe
226
400
200
345
356
350
380
417
450
483
509
Western
Europe
Latin America
0
2000
2001
2002
Year
2003
2004
2005
2006
2007
Projection After year 2003
North
America
Source: Digital Planet 2004 (WITSA)
Note: Computer Software Spending + Computer Service
2.2 Global Development in Computer Related Service
METI Japan
Computer and Information (Export)
Billion $
50
Chaina RP,mainland
45
Netherland
40
France
35
Sweden
30
Canada
25
Belgium-Luxembourg
20
Spain
Ireland
Germany
15
Japan
10
Ireland
5
0
U.K.
1996
1997
1998
1999
2000
Year
2001
2002
2003
2004
U.S.
(Resource) Balance of Payment Year book 2004 (IMF)
( N o t e ) This Graph is based on the figure at "Computer and information, Credit"category.
Mode 3 type transactions and others categories are not considered. Figures of India are not available.
3.1. Development in Asia
METI Japan
Rising trend of Export (Export = blue)
China
India
（100 million Rupies）
250
6,000
Export
Domestic
Billion renminbi
Export
5,000
200
Domestic
Use
4,000
150
3,000
100
2,000
1,000
50
0
0
1999
2000
2001
2002
2003
2004
96
97
98
99
2000
2001
2002
（Source: Nikkei Computer and other statistics compiled by METI)
2003E
3.2. Development in Asia（Other market)
METI Japan
Growing Market (Software Services)
Vietnam
million $
80
70
60
50
40
30
20
10
0
２０００
２００１
２００２
Year
Glowing Number of Software Engineers
persons
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
１９９８
１９９９
２０００
２００１
２００２
(source)
Nikkei Solution Business 2004.11.15
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.
Cases
140
120
Foreign Investment in
Japan
100
80
60
(Software Industry)
40
Cases
20
0
～80
1981-85
1986-90
1991-1995
year
1996-2000
2001-(p)
(Sourc: Toyo keizai)
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.
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?
4.3 Next Step
(Proposal)
METI Japan
Simplified messages to business
●Full commitment
Member
841
◐
Partial commitment
842
843
844
◒
Horizontal commitment
845
849
CPC level
Remarks
Full NT in
Mode 4
×××
●1-3◒4
●1-3◒4
●1-3◒4
●1-3◒4
●1-3◒4
●1-3◒4
3-digit
×××
●1-3◒4
●1-3◒4
●1-3◒4
●1-3◒4
●1-3◒4
●1-3◒4
3-digit
×××
●1-3◒4 exclude measures relating to content covered by CPC 844 & CPC 849
2-digit
×××
●1-3◒4 (full Mode 4 MA originally; full NT Mode 1-3)
3-digit
×××
●1-3◒4
×××
×1-2●3×4 except 843 and 849
●1-4
●1-3◒4
●1-3◒4
●1-3◒4
3-digit
2-digit
×××
Member
×××
×××
×××
×××
×××
×××
×××
84
CPC level
●1-3◒4
2-digit
Remarks
To Close
METI Japan
For the Win-Win game…
Thank you.