The American Council of Life Insurers is hoping U.S. officials will work with top Japanese officials to rein in the Japanese postal life insurance system.

The system, which is in the process of being privatized and stripped of many subsidies and privileges, should not get to introduce new products until it complies with the same rules governing private life insurers, the ACLI says in a statement.

Japan’s Postal Privatization Commission recently ruled that the giant postal life system can add products before “equal conditions” are established without violating the General Agreement on Trade in Services, which requires Japan to treat foreign-based suppliers of services in the same manner as it treats the most favored domestic suppliers.

U.S. Trade Representative Susan Schwab recently testified before the House Ways and Means Committee about privatization that U.S. trade negotiators either “will make sure that either they [government of Japan] are ideally going to do it in such a way that they’re not creating new barriers to trade that would be in violation, in contravention of their …commitments… or we will, if necessary, seek litigation.”

The ACLI welcomes that public commitment by our government to upholding GATS principles in this context, ACLI President Frank Keating says in a statement.