WASHINGTON--The American Insurance Association yesterday called for expediting the process for China to meet its World Trade Organization mandates.
With Deputy Secretary of State Robert Zoellick scheduled to testify before the House Committee on International Relations, the AIA hoped the discussion would include the topic of China's slow progress toward fulfilling the WTO requirements for insurance.
"We are increasingly impatient with the absence of more progress, particularly on insurance matters," said David Snyder, vice president and assistant general counsel for the AIA. "China is depriving its citizens of the compensation, loss reduction and infrastructure financing that insurance brings to a developing country."
Until assuming his current position, Mr. Zoellick served as the U.S. Trade Representative. Mr. Snyder said the AIA understands that Mr. Zoellick did as much as he could on insurance issues, but the lack of progress remains a serious issue, hindering the ability of U.S.-based insurers--and those from other countries--to operate in China.
"We are most concerned with the inability of foreign insurers to be licensed for multiple geographic territories at the same time," he said. "This delays and denies our insurers the ability to exercise the commercial rights they received upon China's WTO accession. We are deeply concerned that Chinese insurers have received more favorable treatment than foreign insurers."
Among the major regulatory problems, Mr. Snyder noted, is that the Chinese rulemaking process lacks fundamental procedures for notice and comment.
"For example, a reinsurance regulation was published late last year without a notice and comment period, and with a one-month compliance deadline," he explained. "This is protectionist, and it is inconsistent with international norms."
Despite these problems, Mr. Snyder said that insurers, as well as U.S. state insurance regulators, continue to work with Chinese officials toward resolving these issues, and that the AIA continues to support continued work to bring China more fully into the world economic community.
"We continue to support a close relationship with China that is mutually beneficial for reasons of commerce and the strategic well-being of the world," he said.
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