[Congressional Record Volume 144, Number 67 (Friday, May 22, 1998)]
[Extensions of Remarks]
[Page E973]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       VIOLATIONS OF THE UNITED STATES-JAPAN INSURANCE AGREEMENT

                                 ______
                                 

                      HON. SANFORD D. BISHOP, JR.

                               of georgia

                    in the house of representatives

                          Friday, May 22, 1998

  Mr. BISHOP. Mr. Speaker, I would like to express my concerns 
regarding current violations of the United States-Japan Insurance 
Agreement. Effective enforcement of existing trade agreements must be a 
fundamental objective of U.S. trade policy. I am sad to report, 
however, that blatant violations of the United States-Japan Insurance 
Agreement are now taking place with barely a word of protest from the 
United States Government.
  The United States-Japan Insurance Agreement is one of the United 
States' primary market access agreements with Japan. It is supposed to 
promote liberalization of the Japanese insurance market by maintaining 
existing safeguards in the third sector, where United States companies 
have traditionally had success, until the primary first and second 
sectors have been liberalized by the Japanese Government. Currently, 
however, this arrangement is under direct attack by Yasuda Fire and 
Marine Co., Ltd., Japan's second largest non-life insurance company--
who has used its affiliate and de facto subsidiary INA Himawari Life 
Insurance Co., Ltd. to prematurely ramp up its presence in the third 
sector.
  If we allow Yasuda to continue expanding its third sector presence 
before the life and non-life sectors are substantially deregulated, the 
Agreement will lose its primary incentive for compliance by Japanese 
firms (i.e., the promise of access to the third sector). Although it 
failed to comply with the Agreement's critical third sector provisions, 
Japan appears ready to start the clock running on the two and one-half 
year lead up to opening the third sector to large Japanese companies on 
July 1 of this year. The Government of Japan must not be allowed to 
take this action until measures are taken to remedy the violations. The 
future of United States companies in the Japanese market is at stake. 
The Administration should take immediate action to ensure full and 
effective enforcement of this agreement.
  The current violations also pose a substantial threat to U.S. foreign 
and trade policy. If the United States is unable to take forceful 
action in the face of clear violations of the United States-Japan 
Insurance Agreement, the Administration will be signaling Japan, as 
well as other countries that would negotiate with us in the future, 
that the United States is unwilling or unable to enforce commitments 
made to it.

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