COMPREHENSIVE MARKET DEVELOPMENT PLAN

1. JAPAN COMPREHENSIVE MARKET DEVELOPMENTPLAN

2. DUE TO IT BEING A LEADING WORLD POWER Second biggest economy worldwide after the USA Represents 11.7% of world GDP and 2% of its population Market of 127 million consumers with a per capita income of $38,000 Third biggest economy in the world by PPP Represents 6% of total world exports and 5.5% of imports Accounts for 5% of total world Foreign Direct Investment made and 10% of that received World leader in: Motor cars Steel and new materials Electronic equipment Machine tools Industrial automation Chemicals DUE TO ITS RECOVERY IN GROWTH In 2003 and 2004 it grew 1.4% and 2.6% respectively Expected growth for 2005 is close to 1% In 2004 imports grew by 8.9% Financial restructuring Better corporate earnings JAPANPRIORITY MARKET FOR SPAIN

3. SPAIN’S PRESENCE IN JAPAN

4. OPPORTUNITY SECTORS For trade For investment and Industrial co-operation • Creative, quality designer consumer goods • Food products targeting gourmet cuisine • Industrial goods (machinery and parts for the auto industry, alternative energies etc) • Machine tools with competitive price and quality • Other sectors with a future • Spanish as an economic resource • Leisure and tourism-related services • Banking and insurance • Telecommunications and other services • Sectors related to reorganisation, deregulation and liberalisation processes • Trading establishments for promoting Spanish product exports • Biotechnology • Information technology • Nanotechnology and the environment

5. To improve market share and step up Spain’s exports to Japan To increase reciprocal investment flows To enhance Spain’s image in Japan To strengthen co-ordination between institutions and between companies: setting up programmes or agreements such as Eureka To foment Spanish and Japanese co-ordination in other zones: China, Latin America etc JAPAN CMDP OBJECTIVES

6. LINES OF ACTION FOR THE CMDP Backing up trade Accessing the market Financial instruments Promotion and image Backing up investment Institutional, information and training Promoting tourism

7. REMOVING BARRIERS TO ENTRY INTO THE JAPANESE MARKET MOVES TO • REQUEST FURTHER CONCESSIONS FROM JAPAN IN THE DOHA ROUND (QUOTAS FOR LEATHER GOODS AND FOOTWEAR, LEGAL FINANCIAL AND DISTRIBUTION SERVICES) • BOOST EU-JAPAN REGULATORY DIALOGUE TO SMOOTH OVER PROBLEMS BETWEEN THE TWO ZONES • BROADEN SECTOR PROTOCOLS SIGNED WITH SPAIN, TO STEP UP THE PRESENCE OF SPANISH PRODUCTS IN THE JAPANESE MARKET • SIMPLIFY DISPROPORTIONATE SANITARY AND PHYTOSANITARY REQUIREMENTS (LATENT HINDRANCES TO TRADE) • GO INTO MORE DEPTH IN TALKS ON ACCESS TO THE JAPANESE MARKET FOR INVESTMENTS, AIMED AT GAINING FAVOURABLE CHANGES IN THE ANTI-TRUST ACT AND CODE OF COMMERCE

8. FINANCIAL INSTRUMENTS TO BACK UP TRADE • STEPPING UP THE GENUINE CO-OPERATION BY ICO-EXIMBANK (JBIC) OF JAPAN WITH SPANISH COMPANIES IN UNDEVELOPED THIRD-PARTY COUNTRIES FOR PROJECTS FINANCED USING EMISSION RIGHTS • INCREASING CO-OPERATION WITH JAPAN THROUGH IFIs (ASIAN DEVELOPMENT BANK) ODA CO-OPERATION WITH JAPAN IN LATIN AMERICA AND ASIA

9. TRADE PROMOTION AND IMAGEGENERAL STRATEGIES • To enhance the image of Spanish products in Japan • Promoting sectors with high added value (Gourmet products, fashion, interior decor, boosting branding programmes and improving funding terms) • Carrying out parallel activities for ExpoAichi 2005 (gastronomy, interior decor, fashion, design) • Reinforcing the presence of Spanish companies in Japan • Stepping up promotional activities including official pavilions at trade fairs • Implementing preferential financing for promotion activities in Japan

10. TRADE PROMOTION AND IMAGE2005-2008 SECTOR STRATEGIES Foodstuffs • Japan priority market, both for wines and food, where quality and gourmet positioning is sought in the higher segment • General plan for wines • Japan is one of Spain’s principal opportunity markets for wines, with resources concentrated on events for high quality wines. • Activities aimed at distribution: mini-shows, reverse mission for journalists, advertising, image and communications activities: wine-waiting competitions for Spanish wines, seminars and tastings • General plan for promoting foods (several sectors and gourmet products) • Consolidation of the gourmet trade fair mini-show organised in collaboration with the Chambers of Commerce. • Official pavilion at Foodex Tokyo. • Image activity: gastronomy thematic days with the presence of the 15 best Spanish cooks (built into the ExpoAichi 2005 programme). New sectors being positioned: citrus and dried fruits and nuts.

11. TRADE PROMOTION AND IMAGE2005-2008 SECTOR STRATEGIES Foodstuffs • Olive oil plan • Retail and catering segments with image of variety and quality. • Communications and promotions activities: advertising, marketing features, seminars and promotions in major stores and delicatessen. Consumer goods • Spanish general fashion and in interior decor plans • Image creation: fashion image plan (support for catwalks and designer image creation), communications programme, www.fashionfromspain.com web-page in Japanese. • Internationalising promotion of fashion image plan (support for catwalks and designer image creation), communications programme, www.fashionfromspain.com web-page in Japanese. • Japan interior design plan • Informative activities and image creation. New promotional activities for designer products for interior decor: Involvement at Tokyo Designer’s Week (Nov. 2005). • Promotion of internationalisation.

12. TRADE PROMOTION AND IMAGE2005-2008 SECTOR STRATEGIES Industrial and technology products • Communications campaign regarding Spain’s image in technology • Corporate co-operation on ICT, biotechnology and environmental projects Services • Design Services: Encouraging Japanese Industry to be aware of and take an interest in Spanish expert designers (Industrial, Textile, Fashion and Graphic Design, Interior and Multi-sector Design) (Technical Design Conferences in Tokyo) • Publishing Sector: increasing awareness of Spanish books in non-Spanish speaking countries (joint participation at the TIBF, the Tokyo International Book Fair) • Educational Services: the aim is to promote the teaching of Spanish as a Foreign Language in Japan (Linguistic Agents’ Meeting at the Pacific Rim Workshop) • Musical Instruments: Encouraging musical instrument sales in Japan, particularly the Spanish guitar.

13. TRADE PROMOTION AND IMAGE2005 ACTIVITY 43 PROMOTIONAL ACTIVITIES ARE PLANNED • 8 involve taking part in trade shows (3 official pavilions, 1 information pavilion and 4 joint participations) • 6 direct trade missions, 10 reverse missions and 1 study mission. 1 design sector technical day, 4 consumer goods sector exhibitions and 3 promotional campaigns for the wines and interior decor sectors. • By sectors 45% of these activities are in consumer goods, followed by 25% in food and farming, 16% in services and 14% in industrial products

14. Organisation of informative and training activities on investment in Japan at the centre of internationalisation experiences Framework co-operation agreement on the subject of promoting investment with institutions specialising in attracting investment into Japan Programme to back up trips to explore investments (PROSPINVER) Spanish-Japanese corporate assembly (Nov. 2005) Strengthening the PAPI programme in support of investment projects INVESTMENT PROMOTION

15. INSTITUTIONAL BACK-UP ACTIVITIES • Organising seminars to attract japanese investment • Encouraging visits by Keidanren delegations to Spain • Promoting the Spain-Japan forum • Reinforcing the bilateral committee with high level visits • Visit by the Prince of Asturias to Expo Aichi 2005

16. ICEX – INFORMATION-TRAINING HUMAN RESOURCES • INFORMATIÓN • Launch in December 2005 of a reverse web-site in Japanese. • Publication of a Country file in Japanese in 2006 • Increase of number of specialist conferences and seminars for sectors and products of interest in Japan • Conferences to study the Japanese market are planned in 2005 in Barcelona, Seville, Caceres and Valencia on 12,14,16 and 19 of December. From 2006-2008 there are plans to continue organising this type of conference for certain products or sectors of interest in Japan (consumer and farming mainly). • Exporta international meeting place • TRAINING • Of professionals in foreign trade and investment who specialise in the Japanese market for the internationalisation process in Japan • Increasing the number of internationalisation interns on placement at the Economic and Trade Office in Tokyo to 6 (5 specialising in internationalisation and one in IT.) New technology scholarship winner. • New technology intern on placement in Tokyo

17. SPAIN’S PROMOTIONS PROGRAMME IN SPAIN 2005 OBJECTIVE: To reinforce Spain’s image generally paying special attention to its sight-seeing and scenic assets Support for developing and marketing linguistic and cultural tourism products and trying to diversify regional destinations 2005 BUDGET: Promotions € 519,353 Advertising€ 900,000 TOURISM PRODUCTS: Cultural tourism (65%) in its various forms: individual and package tourism, business and incentives tourism (20%), linguistic tourism (15%) TURESPAÑ ACTIVITIES IN THE AREA OF TOURISM

18. ACTION ON THE DEMAND FOR TOURISM: Improving and widening the range of content in Japanese onTurespaña's www.spain.info web-site Advertising campaign Press familiarisation trips Sponsoring festivals (Flamenco) Collaboration agreement for the Aichi Universal EXPO TURESPAÑ ACTIVITIES IN THE AREA OF TOURISM • ACTION ON PROMOTING THE RANGE ON OFFER: • Trade Fairs (Jafa WTF, Korea World Travel Fair). • Direct marketing (Camino de Santiago, Heritage Cities) • Trips for agents

19. BUDGET FOR THE JAPAN CMDP

20. Market barriers Impact and results of promotion and image-related activities Promoting exports and bilateral business co-operation for high-tech industries Maintaining and boosting Japanese investment into Spain FOLLOW-UP FOR JAPAN CMDP Plan Handler OFECOMES TOKYO Follow-up Action In charge • SGCOMEX • ICEX • ICEX • State Corporation for Investment Promotion (SEPI)