Washington–U.S. efforts to reach agricultural agreements in World Trade Organization talks could clear the agenda for other issues, including services agreements that impact insurers, the American Insurance Association said today.
Service industry agreements establish how foreign companies are treated in other markets, and the insurance industry has consistently pushed to ensure that domestic insurers do not receive favorable treatment.
"Insurance can help developing nations increase financial security and support growth, but insurance can only provide those benefits if the market is liberalized and insurers can enter," commented David Snyder, American Insurance Association vice president and assistant general counsel.
Mr. Snyder's comments came as the AIA voiced support today for recent efforts by the United States to resolve the agricultural issue and called on developing countries to follow suit.
"The U.S., said Mr. Snyder, "has made substantive offers on agricultural agreements this week during the WTO Doha Development Agenda meeting in Geneva, Switzerland. Unfortunately, developing countries have not."
Mr. Snyder said the WTO agenda has been largely dominated by the agricultural issue, keeping negotiators from dealing with other areas of concern such as those dealing with service industries.
"Service industry negotiations have been held up because of the lack of agreement in the agriculture sector," he said. "The U.S. has this week made the kind of offer that should accelerate the agriculture negotiations and put an end to the excuses that have been plaguing the service industry talks."
The AIA said that U.S. Trade Representative Robert Portman has offered a plan that would help move the agricultural talks along and possibly lead to a new global free trade agreement for 2006, and Mr. Snyder noted that European Union negotiators have also made concessions and efforts on the issue. Developing nations have been slow to act, however, which he added does them more harm than good.
"Developing countries are hurting themselves by not stepping up to the level of commitment demonstrated by the U.S. so that the talks in Hong Kong can result in the kind of truly productive agreements that would instill confidence in the global economy," said Mr. Snyder, adding that, "U.S. insurance and service industries still seek access to foreign markets.
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