ACLI Issues Statement on North American Free Trade Agreement

WASHINGTON, May 18 -- The American Council of Life Insurers issued the following statement in response to the Trump administration's announcement of its plan to renegotiate North American Free Trade Agreement (NAFTA):

"The North American Free Trade Agreement (NAFTA) has been a resounding success for the U.S. life insurance industry, expanding opportunities for companies to compete in providing products and services to consumers in Mexico.

"Prior to NAFTA, U.S. life insurers could only be minority investors in Mexican insurance companies. Now, a U.S. insurer can own 100 percent of a company. Industry data shows that before NAFTA, U.S. affiliated companies had less than 20 percent market share. Today, U.S. life insurers have 34 percent market share.

"NAFTA has resulted in jobs for American workers and greater financial and retirement security for Mexican consumers.

"Despite its successes, changes to the agreement would help NAFTA reflect current economic practices. This is most important with respect to changes in technology that have taken place since NAFTA took effect in 1994. Toward that end, the U.S. industry supports inclusion of commitments on cross-border transfer of data and against forced localization of data.

"Modernization of NAFTA also would set an example for other bilateral and regional trade agreements which the Trump Administration has indicated will be at the core of its strategy to create U.S. export jobs and support economic revitalization.

"U.S. insurers are not alone in supporting NAFTA. Trade associations representing the respective industries in Canada and Mexico support NAFTA and encourage its modernization.

"A modernized pact and a continued commitment to serving the best interests of insurance consumers and companies in the three countries will help ensure NAFTA's continued success."

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 290 member companies operating in the United States and abroad. ACLI advocates in state, federal, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers' products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing 94 percent of industry assets, 93 percent of life insurance premiums, and 97 percent of annuity considerations in the United States. Learn more at www.acli.com.