The Office of the U.S. Trade Representative (USTR) on March 30 published its 2005 National Trade Estimate on Foreign Trade Barriers. The report emphasizes the importance the U.S. government has attached to the privatization of postal services in Japan's structural reform.
The USTR is a U.S. presidential body in charge of foreign trade negotiations.
The USTR report is straightforward in explaining why the United States presses Japan to carry out structural reforms: "Structural and regulatory reform not only contributes to growth, but also plays an enormous role in increasing market access opportunities for U.S. companies."
U.S. evaluates performance
The Koizumi Cabinet is close to drawing up an outline of the postal privatization bill. However, the ruling parties are still discussing why it is necessary to privatize the postal services. The fact that this basic question is being discussed at this late stage shows how unreasonable the privatization proposal is.
Why are the ruling parties unable to clearly state their case for postal privatization? It's because the call for privatization originates in the self-centered demand of the financial sector and the United States.
In order to increase opportunities to make profits, the financial sector has been demanding that postal savings and post office "Kampo" insurance be downsized or abolished. The United States is also calling for postal services to be privatized so that U.S. businesses can prosper through take-overs of postal savings and post office insurance programs.
In the Japan-U.S. summit talks in September 2004, U.S. President George W. Bush raised the topic of postal privatization and asked about its progress. Prime Minister Koizumi said, "We will do our best."
In June 2001, just after he took office, Prime Minister Koizumi held his first talks with U.S. President Bush and agreed to launch the Japan-U.S. economic partnership for growth. The partnership is in name only. It is a framework in which the United States places unilateral requests on Japan's structural reform and then appraises its progress.
Japan-U.S. trade talks are based on "The Initiative Regulatory Reform and Competition Policy" established by the USTR and Japan's Foreign Ministry, and "The Investment Initiative" by the U.S. State Department and Japan's Ministry of Economy, Trade and Industry.
The "request" which the USTR put forward last October in "The Initiative Regulatory Reform and Competition Policy" praised the Japanese government's basic policy proposal for postal privatization as an "important step" and cited more than ten specific requests. Insisting that the privatization "should be implemented based on market forces", the USTR demanded that the government fully pull out from postal saving as well as postal life insurance services, and that these steps be reflected in a law on privatizing postal services.
The USTR usually submits a "report" to leaders of both countries in May or June concerning Japan's efforts in response to U.S. requests. The "request" and the "report"are more like an "order" and an "evaluation."
Aso Taro, the minister of Public Management, Home Affairs, Posts and Telecommunications, has expressed concern that foreign investors may take over the Japanese postal business if the postal services as joint stock companies sell their postal savings and postal life insurance shares. In fact, the American Chamber of Commerce in Japan calls for stocks of the privatized postal companies to be acquirable by foreign investors.
Retract the privatization plan!
Based on the "The Investment Initiative," Prime Minister Koizumi Jun'ichiro in his 2003 policy speech said, "I will take measures for Japan to attract foreign companies, looking for a twofold increase in the investment balance to Japan in five years." His remark greatly pleased the United States.
The postal services are important assets of the Japanese people. How can we allow these public assets to be swayed by U.S. requests and exploited by U.S. companies?
The Japanese Communist Party demands that the plan to privatize the country's postal services be retracted.
