Joined by Global Industry Coalition, ACLI Expresses 'Regret' Concerning Japan's Postal Legislation

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May 10, 2010, 04:01 ET

WASHINGTON, May 10 /PRNewswire/ -- Thirteen global stakeholder organizations joined with the American Council of Life Insurers (ACLI) in a statement today expressing regret that legislation approved by Japan's Cabinet does not appear to reflect the stakeholders' repeated expressions of concern regarding plans to expand Japan Post's huge businesses in violation of Japan's WTO and GATS commitments.

According to the coalition's statement, the groups "urge our respective governments to help Japan find a solution that ensures that it can fulfill its international trade commitments."

Frank Keating, President and CEO of ACLI, said, "Frankly, in spite of tremendous domestic criticism and numerous global messages from other governments and from private sector participants, Japan has not responded to those who have appealed to it to live up to the GATS (General Agreement on Trade in Services) commitments it has made."

On April 30, the Government of Japan issued a Cabinet Decision approving new postal legislation that contemplates legal and regulatory exemptions from laws applying to private sector companies; entry into new business areas through a streamlined "notification" process; higher deposit and coverage limits that will greatly expand the market reach of Japan Post's businesses despite their current advantages; special tax exemptions, and the provision of an unlevel playing field for express delivery companies.

"Moreover, by calling Japan's commitment to honor its obligations under the GATS further into question, the draft legislation could harm Japan's international interests," the statement said.

"We respectfully urge," the statement continued, "the Government of Japan to use the time remaining before the postal legislation is finalized as an opportunity to ensure equivalent conditions of competition with private sector banks, insurers, and delivery companies is enforced."

Joining with ACLI were the American Chamber of Commerce in Japan, America's Health Insurance Plans, the American Insurance Association, the Association of Bermuda Insurers and Reinsurers, the Canadian Life and Health Insurance Association, the Coalition of Service Industries, the Conference of Asia Pacific Express Carriers, the European Business Council in Japan, the Foreign Non-Life Insurance Association of Japan, the European Insurance and Reinsurance Federation, the Property Casualty Insurance Association of America, the U.S. Chamber of Commerce, and the U.S.–Japan Business Council.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 300 legal reserve life insurer and fraternal benefit society member companies operating in the United States. ACLI members represent more than 90 percent of the assets and premiums of the life insurance and annuity industry. In addition to life insurance and annuities, ACLI member companies offer pensions, 401(k) and other retirement plans, long-term care and disability income insurance, and reinsurance. ACLI's public Web site can be accessed at www.acli.com.

SOURCE American Council of Life Insurers