DC Japan Post Draft

BC-DC-Japan-Post-Draft

To: NATIONAL EDITORS

Contact: Jack Dolan, ACLI, +1-202-624-2418, [email protected]

American Chamber of Commerce in Japan

American Council of Life Insurers

Americas Health Insurance Plans

American Insurance Association

Association of Bermuda Insurers and Reinsurers

Canadian Life and Health Insurance Association

Coalition of Service Industries

Comite Europeen des Assurances (Association of European Insurers and

Reinsurers)

European Business Council in Japan

Foreign Non Life Insurance Association of Japan

Property Casualty Insurance Association of America

U.S. Chamber of Commerce

U.S. - Japan Business Council

WASHINGTON, Feb. 26 /PRNewswire-USNewswire/ -- On February 8, the

Government of Japan released a "Postal Reform Preliminary Draft" ("Preliminary

Draft") that lays out the government's framework for Japan Post restructuring.

According to the government, the contents of the Preliminary Draft constitute

the basis for deliberations on a final government legislative draft to be

submitted to the Diet in March 2010.

The Preliminary Draft contemplates a number of measures that, if

implemented, would be inconsistent with Japan's international obligations and

best practices to provide a level playing field between the Japan Post

entities and private banks, insurers, and delivery companies and to refrain

from special favors that would give Japan Post an unfair competitive

advantage. For example, it contemplates:

-- Implementing special measures such as exemptions from consumption

taxes, stamp taxes, etc., to compensate the Japan Post Group for the

costs it incurs as a result of universal service obligations imposed

by the government.

-- Raising or eliminating the per-person deposit and coverage limits

currently imposed on Japan Post Bank and Japan Post Insurance's

businesses.

-- Permitting the Japan Post entities to enter new business areas,

including those where foreign companies are strong.

-- Providing Japan Post Bank, Japan Post Insurance, and Japan Post

Services special legal and regulatory exemptions, including from

provisions of the Banking Law, Insurance Business Law, and Road

Traffic Law.

-- Allowing Japan Post to compete on an un-level playing field with

foreign express delivery companies.

For years, industry groups have engaged Japan regarding Japan Post

reform, repeatedly emphasizing the need to establish a level playing field

with the private sector across the broad spectrum of Japan Post's competitive

services, including banking, insurance, express delivery, and other services.

Industry groups have long expressed the view that there should be no new or

modified products or services introduced by Japan Post until a level playing

field is established between Japan Post and private companies in accordance

with Japan's international obligations.

The organizations listed above - representing a broad and global group of

stakeholders - have a large stake in any restructuring of Japan Post. The

organizations strongly urge the Government of Japan to use the time remaining

before the new postal legislation is finalized as an opportunity to ensure a

level playing field. In this effort, we urge the governments involved to

commit to a process with Japan that facilitates the adoption of such measures

and would bring Japan into full compliance with its national treatment

obligations under the General Agreement on Trade in Services (GATS), a

cornerstone of multilateral efforts to liberalize international trade in

services, as well as adoption of international best practices of open

competition to benefit consumers - before existing restrictions on Japan Post

are removed or it is allowed to expand its existing operations or enter new

lines of business.

SOURCE American Council of Life Insurers

-0-