U.S. Concerned about Japan's Postal Reform Plans

Washington, March 31 (Jiji Press)--The United States voiced concern
Wednesday that revisions to the Japan Post Holdings Co. group's
privatization process may seriously hamper competition in Japan's financial
markets.
In an annual report to Congress on foreign trade issues, the Office
of the U.S. Trade Representative said that "as modifications to the postal
financial institutions and network subsidiary could have serious
ramifications for competition in Japan's financial market, the U.S.
government continues to carefully monitor the Japanese government's postal
reform efforts."
The 2010 National Trade Estimate Report on Foreign Trade Barriers,
submitted by US Trade Representative Ron Kirk, said, "The United States does
not have a position on whether Japan Post should be privatized or otherwise
restructured."
But it urged Japan to "ensure that all necessary measures are taken
to achieve a level playing field" between the Japan Post companies and
private-sector participants in the country's banking, insurance and express
delivery markets.
"The U.S. government also continues to emphasize the importance of
transparency and disclosure in the postal reform process," the report said.
The government of Japanese Prime Minister Yukio Hatoyama is
planning to scale back the postal privatization process launched by the
previous government and raise the limits on deposits at Japan Post Bank and
"Kampo" insurance benefits to be paid out by Japan Post Insurance Co.
The Japan Post group is a sprawling network of post offices across
the country that also handles banking, insurance, and mail and parcel
delivery businesses.
The USTR also pressed Tokyo to relax its qualification standards
for a subsidy program for purchases of environmentally friendly vehicles so
that more U.S. models can be eligible.
The number of U.S. models that qualified was "greatly limited"
under the current criteria.
In a separate report, the USTR said the U.S. government remains
"highly concerned by Japan's unwillingness" to open its market fully to U.S.
beef imports and "is working vigorously to normalize exports to this
important market."
Japan restricts U.S. beef imports due to worries about the risk of
infection with mad cow disease, formally called bovine spongiform
encephalopathy, or BSE.