GlobalValueChain”inEastAsia.pptVIP

“Global Value Chain” in East Asia Michitaka Nakatomi President Japan External Trade Organization(JETRO) * Implications of WTO/IDE study Issues of global value chains and vertical specialization highlighted Diversity and complementarities of production networks cause fragmented value chains The concept of country of origin is becoming increasingly difficult to apply Importance of lowering trade barriers A new trade regime is needed, as firms go beyond national boundaries * The regime should include: Wider regional coverage Universality Elimination of trade barriers Freer movement of goods, services, capital, people and technologies Contribution to global business activities * Importance of WTO WTO as a universal regime WTO as a regime for ensuring companies productions and activities globally Swift conclusion of Doha Round necessary A regime that provides solutions to business challenges is needed Not only tariffs, but also anti-dumping rules, trade facilitation, trade and investment, competition policy and intellectual property rights, etc.cf. Chapter IV of the study: necessity to deal with NTMs Speed : Business requires a regime which responds quickly to its needs. * Complementary regimes for WTO FTAs Bilateral Regional Plurilateral Agreements (such as ITA) Other bilateral or regional cooperation ? Consistency with WTO rules is required * Japans action and global value chains in East Asia Supply chains in East Asia Deepening of intra-regional trade The widespread system of supply chains Japans support for WTO regime Only 17% of Japans trade is with FTA partners A multilateral-based trade rule is the best solution * Major Flow of Intermediate Goods and Finished Goods in Asia (Electrical/Electronic) Source: RIETI-TID(2009), White Paper on International Economy and Trade 2010 (METI) Japan South Korea China/ Hong Kong Taiwan ASEAN * Electric/electronic machinery export value (billion USD) 3.2times (36.7←11.6) US/ Europe 5.9times(124.4←21.1) 1.6times(8.7←5.4) 1.8ti