The American Insurance Association continued its longtime support of “Normal Trading Relations” with China and its entry into the World Trade Organization at hearings held Tuesday by the House Ways and Means Committee.
The AIA cited the following insurance related issues as remaining in dispute:
-The elimination of the mandatory 20 percent reinsurance cession on non-life insurance products.
-Opening the market to “large-scale commercial risks”
-Master policy coverage. The agreement will permit insurers to underwrite blanket coverage for the same person’s property and liabilities but located in different places.
-Licensing criteria.
On the last point U.S. Trade negotiators are currently in a dispute with the European Union over the licensing of “branch offices” by companies already doing business in the Chinese market, notably American International Group. (See previous article). The AIA statement diplomatically omitted a discussion of this particular problem.
Its support for PNTR and China’s entry into the WTO, however, remain strong. John Savercool, AIA VP for federal affairs stated that he was confident that “these issues will be favorably addressed in the ongoing negotiations over China’s WTO accession and look forward to China’s becoming a WTO member so that U.S. insurers can have greater access to that market.”
Topics China
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