Washington, DC (PRWEB) October 05, 2015
The American Insurance Association (AIA) welcomes the announcement that the Trans-Pacific Partnership (TPP) parties have reached an agreement. AIA has engaged with the U.S. Trade Representative (USTR), the other TPP parties, and the business communities of all TPP parties since the U.S. joined the negotiations.
A statement by Steve Simchak, AIA’s director of international affairs and a member of a USTR advisory committee, follows:
“AIA is pleased that the TPP has concluded and we thank the U.S. negotiators for their hard work over the past six years. We look forward to reviewing the details of this agreement once the text of the agreement is released. Just the geographic scope of it alone creates the potential for unprecedented opportunity for U.S. insurers. We believe that it will encompass commitments that address 21st century issues faced by U.S. insurers abroad.
“International markets are increasingly where U.S. insurers are focused. But in many markets U.S. insurers face market access barriers. Even if U.S. insurers are permitted in foreign markets, they frequently face discriminatory treatment relative to domestic insurers. Breaking down those barriers, both at the border and behind the border, creates enormous opportunities for the U.S. In fact, the U.S. International Trade Commission, an independent federal agency, estimates that if insurance trade barriers were eliminated we would see significant increases in U.S. insurance trade and investment abroad. As a result, high paying jobs will be created here in the U.S. as well.
“As the debate about TPP moves from the negotiating table to Capitol Hill, it is essential that the insurance industry speak loudly about the importance of this deal to our industry’s growth. Our insurance market is already open to foreign insurers. It is time for markets in this important region to be more open to U.S. insurers.”
The TPP includes the U.S., Malaysia, Australia, Brunei, Chile, New Zealand, Peru, Singapore, Vietnam, Canada, Mexico and Japan. The U.S. does not have existing trade agreements with Malaysia, Brunei, New Zealand, Vietnam and Japan. Therefore, significant improvement in those markets relative to current market conditions is expected for U.S. insurers. In those markets where the U.S. has existing agreements, the TPP can create enhanced trade liberalization.