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PRESS RELEASE
For Immediate Release ...................................... Contact: Ekrem Sarper
January 30, 2007 ........................................ . (202) 289-7460 x 33
International Trade Associations Urge the Use of
Global Best Practices in Privatizing Japan Post
WASHINGTON , D.C.: In a statement released today, a strong group of associations representing the global financial services industry collectively urged Japan to apply global best practices to the privatization of the Japan Post. “This will put both domestic and foreign competitors on a ‘level playing field’ in the Japanese market” said Robert Vastine, President of the Washington based Coalition of Service Industries (CSI).
The international business group urged that Japan’s Postal Privatization Commission consider carefully whether allowing “privileged postal financial institutions” to expand into new businesses prior to having “equal competitive conditions” would actually “heighten user convenience” as the Commission seeks. The business group also reminded the Commission that creating a level playing field was an obligation under Japan’s “national treatment” obligations under the General Agreement on Trade in Services (GATS) and Article 2 of the Postal Privatization Law.
“As one of the world’s largest financial services centers, allowing privileged postal financial institutions to expand into new businesses before having proper internal control and compliance systems in place could endanger the soundness of Japan’s financial markets,” said Vastine.
CSI also strongly believes that the postal reform must ensure that all of Japan Post’s corporations including Kampo (postal insurance), Yucho (postal savings) and Yubin (postal delivery) are required to meet the same regulatory, financial, tax, transparency and prudential requirements as their private sector competitors.
“A fair and competitive environment in finance, insurance and express delivery services is necessary to ensure the efficiency of Japan Post’s entities and the Japanese economy, provide Japanese consumers with the best service at competitive prices and ensure foreign firms equal treatment,” said Vastine. “These are important developments which we will continue to monitor closely.”
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The U.S. service sector accounts for about 80 percent of GDP and 80 percent of U.S. non-farm employment. It accounts for exports of $307 billion, with an export surplus of $51 billion. The U.S. exports far more business, professional and other private services that we import – we sell far more of our services to foreigners than we outsource to them. The U.S. is the world’s most competitive services exporter.
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Full Statement available at http://www.uscsi.org
PDF Version
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