International Trade committee  It's our view that the principle of national treatment under the GATS obligations is being infringed by the existence of these advantages to Japan Post. We have participated in a coalition with other international insurance associations and trade groups for a number of years no

International Trade committee  That's right. There's Europe, U.S., and Japan itself.

International Trade committee  No. There hasn't been a formal complaint filed. We really are working through diplomatic means to try to resolve this.

International Trade committee  Well, it still is an outstanding issue that hasn't been resolved yet.

International Trade committee  The domestic insurers in Japan are similarly disadvantaged by these provisions, and they are also seeking a level playing field.

International Trade committee  In the context of the legislation that was just passed, that legislation, if enacted, would impose upon Japan the obligation to provide those products. It's state owned and the government wants to apply that requirement to it, and we are saying that private insurers, including fo

International Trade committee  We're actually not aware of that provision ever being used in the case of Canadian insurers under the NAFTA arrangements or anywhere else. It just, on the face of it, appears to be an extra level of security, and given the situation with Japan Post, for example, would give more l

International Trade committee  Yes, I agree with what Peter has said, that the existence of an investor-state dispute settlement mechanism would give a greater level of security to Canadian insurers investing in Japan. Its existence helps to keep governments in line with their obligations under the agreements.

International Trade committee  Back in the mid-2000s, in 2005, there was a bill passed in the Japanese diet to privatize Japan Post. In 2007—

International Trade committee  Yes, that's right. It was subsequently split into the four corporations: banking, insurance, and two for postal services. Because of politics in Japan, in 2010 those reforms to privatize were stalled. The four companies are owned by a holding company. The Japanese government hol

International Trade committee  Effectively, the whole of Japan Post is owned by the government. The 30% represents the shares that have been released for ownership, if you will. I don't pretend to quite understand how that works.

International Trade committee  Is it owned by someone else? No.

International Trade committee  Yes, we could do that.

International Trade committee  Okay. There's also the aspect of distribution. Japan Post is actually four different corporations, which includes insurance, banking, and the postal services. Under the new legislation, Japan Post Insurance has almost exclusive access to distribution through the Japan Post netwo

International Trade committee  Thank you, Mr. Chair. As you can see, the Canadian life and health insurers welcome the Canadian government's decision to pursue a comprehensive and high-level economic partnership agreement with Japan. We believe an EPA will help to eliminate impediments to Canadian businesses