1. PROMOTING FREE TRADE January 10, 2011 Las Vegas,USA Shoichi Inoue Deputy Director, International Affairs Department Japan Electronics & Information Technology Industries Association (JEITA) WEF Presentation

2. 1. RECENT JAPANESE TRADE POLICY 2. GLOBAL PRODUCTION FORECASTS FOR JAPANESE ELECTRONICS AND IT COMPANIES 3. DTV COVERAGE IN JAPAN 4. ADOPTION OF JAPANESE SYSTEM FOR TERRESTRIAL DIGITAL TELEVISION BROADCASTING 5. HOT ISSUES - US DoT’s Proposed Changes to Lithium Battery Transportation Regulations - Stable and Secure Rare Earth Supply - Building Internationally Harmonized Systems for the Safety of Telecommunications Networks 6. CONCLUSION 1 TALKING POINTS

3. 2 1. Japanese Trade Policy - Further advance of global free trade through agreement in the WTO Doha Round negotiations - Necessary to deepen economic relationships with Asian and emerging countries, and with Western and resource-rich countries, to achieve a “strong economy” EPAs as well as WTO MONGOLIA Research/discussio n underway EU ASEAN+6 ASEAN+3 JAPAN KOREA CHINA In negotiation/basic framework agreed In force or signed KOREA INDIA GCC AUSTRALIA PERU MEXICO CHILE SWITZERLAND PHILIPPINES VIETNAM THAILAND BRUNEI MALAYSIA INDONESIA SINGAPORE A J C E P CHINA JAPAN US NZ TPP

4. 3 (1) Global Production 2008 (Results) 2009 (Results) 2010 (Estimates) 2011 (Forecasts) Global production by Japanese electronics and IT companies Communications equipment Computers & information terminals Other electronic equipment Electronic components Display devices Semiconductors IT solution services ($ million ; % change YoY) 2008 (Results) 2009 (Results) 2010 (Estimates) 2011 (Forecasts) AV equipment ($ million ; % change YoY) 2008 (Results) 2009 (Results) 2010 (Estimates) 2008 (Results) 572,97 2 459,689 508,573 530,72 0 113,10 1 96,401 106,02 6 110,071 50,20 6 41,615 41,844 42,46 8 108,547 85,362 94,582 102,374 30,30 7 23,17 3 27,916 29,24 0 98,11 6 73,67 6 85,95 4 89,38 1 32,933 23,94 7 26,20 8 72,17 1 54,78 7 65,81 1 67,48 8 67,59 1 60,72 7 60,23 2 62,43 5 27,26 2 2. Global Production Forecasts for Japanese Electronics and IT Companies

5. 4 2. Global Production Forecasts for Japanese Electronics and IT Companies (2) Flat-panel TVs ($ million ; % change YoY) -10% 16%4% 2009 Global Recession High value of the yen 2010 ECO POINTS Switching over to Terrestrial Digital Television Broadcasting 2011 Analog TV Switched- off in July 2011 Market forces in Japan

6. 5 90.3 ％ Oct.2010 Household Coverage 97.0 ％ Mar.2009 Area Coverage 3. DTV Coverage in Japan Dpa Digital TVs Support Center JEITA / NHK Promotion and Consumer Support

7. 6 4. Adoption of Japanese System for Terrestrial Digital Television Broadcasting The Japanese system (ISDB-T) has now been adopted as the standard for terrestrial digital television broadcasting by the majority of South American countries. Bolivia, Brazil, Peru, Argentina, Chili, Venezuela, Ecuador, Costa Rica, Paraguay and the Philippines Source Wikipedia: The Free Encyclopedia. Retrieved from http://ja.wikipedia.org/wiki/ISDB

8. 7 5. Hot Issues (1) US DoT’s Proposed Changes to Lithium Battery Transportation Regulations - Association letter to US DoT from IT industries in the US, Japan, EU and Korea - We strongly request that regulations be well-balanced between safety and economic efficiency. - Great impact on American people’s daily lives Ｃ Ｃ

9. 8 5. Hot Issues (3) International Harmonization of Information Security Systems (2) Stable Supply and Open Access to Mineral Resources - All countries should work together to find pragmatic and sustainable solutions for a stable and secure rare earth supply. - Association letter to the G-20 Leaders from world industries - Ensuring the global safety of telecommunications networks with the latest technology and products - All countries should develop their systems with full consideration to international standards and contract practices.

10. 9 6. Conclusion ~ To Promote Innovation ~ - Build a secure global IT society for economic development - Commit to maintaining open markets and fighting protectionism - Collaborative and coordinated approaches by WEF members to resolving common concerns

11. Thank you very much for your attention.