[Congressional Record Volume 140, Number 11 (Tuesday, February 8, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
             UNITED STATES-JAPAN FRAMEWORK INSURANCE TALKS

  Mr. MURKOWSKI. Mr. President, as President Clinton prepares for his 
summit with Prime Minister Hosokawa later this week, I want to make 
several points about the framework negotiations on insurance. First and 
foremost, the United States must not accept an agreement which fails to 
provide genuine competitive opportunities for American companies in 
Japan. An agreement for its own sake would be a serious mistake, and 
unacceptable to this Senator. A bad agreement would be worse than no 
agreement at all.
  It is critical for the administration to follow through on its 
publicly stated goal of a results-oriented insurance agreement with 
Japan. The MOF and Japanese insurance companies must understand that 
our Government's support for the United States insurance industry is 
real. The Japanese Government and insurance companies must no longer be 
allowed to discriminate with impunity against United States insurance 
interests.
  Foreign insurance companies currently hold less than 3 percent of 
Japan's market. In other OECD countries, the foreign share is at least 
10 percent, and up to 33 percent. If Japan's insurance deregulation 
program is to be truly meaningful, foreign firms must be allowed to 
compete in a fair manner, and the limited progress made to date by 
foreign firms must not be sacrificed in the name of deregulation. On 
the contrary, this progress should be fostered, so Japanese consumers, 
both individual and corporations, can enjoy the benefits that 
deregulation is intended to generate.
  The consequences of these negotiations will reach beyond Japan to 
elsewhere in Asia. Other Asian governments will take note of the 
serious support by our Government for industry objectives across the 
region.
  We cannot afford to wait as long as we did on the construction 
industry issue in Japan. My experience there suggests that real 
progress can be made on difficult access problems when a serious 
approach is taken. Reforms will benefit both economies and underscore 
that Japan is serious about reducing its trade imbalance with America.
  Further, Japan has suggested the United States is trying to manage 
trade. It is disingenuous for Japan, of all countries, to suggest the 
United States is somehow threatening fundamental market economics. The 
allegation is a red herring. Rather, the United States is simply trying 
to establish benchmarks to determine whether an agreement is achieving 
its objectives, something the Japanese should favor.

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