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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Tito L. Nisperos Jr. who wrote (13284)	12/14/1997 9:02:00 PM
From: NightClub	Read Replies (1) \| Respond to of 70976

To All: This is the article I was referring to previously. If it has already been discussed, I apologize. Im too busy to catch every post. WASHINGTON (Reuters) - U.S. officials are hailing a global agreement to open banking, insurance and securities markets, saying it should help to restore confidence in Asia's troubled markets and boost world growth. Trade Representatives Charlene Barshefsky said the pact reached early Saturday at the World Trade Organization (WTO) in Geneva covered a broad range of services involving $18 trillion in global securities assets, $38 trillion in global bank lending and about $2.5 trillion in worldwide insurance premiums. "This agreement will open financial services markets to an unprecedented degree and provide lasting benefits to U.S. industry, the U.S. economy and the global economy," Barshefsky and Treasury Secretary Robert Rubin said in a written statement. "With this deal, 102 WTO members now have made market opening commitments in the financial services sectors," Barshefsky said at a White House news conference. She said U.S. firms stood to benefit greatly from the pact, which would give them more access to developing nations' markets. "The improved market access offers provided for in the deal won't just create opportunities for financial services firms, but it will also help strengthen the financial infrastructure that is critical for virtually every other major trading sector," Barshefsky said. Deputy Treasury Secretary Lawrence Summers told the news conference the pact should help restore confidence in Asian markets rocked by currency devaluations, falling stock prices and weak banking systems. "I would hope that the existence of this agreement would be a contributing factor along with a full set of policies taken in particular countries that can contribute to confidence almost immediately," he said. Over time, Asian nations' interactions with foreign financial institutions could attract capital and increase confidence, he said. "The extent will differ from country to country, but I think the willingness of countries to take this step at this difficult time is a demonstration of their recognition that the path of openness and integration offers them the best prospect for continuing the remarkable economic growth that has been the Asian story for the last several decades," Summers added. Barshefsky said Washington would continue to work with some countries before the pact takes effect to improve their offers. In particular, it wants to work out differences with Malaysia over its proposal to limit foreign insurance companies to 51 percent ownership of firms in Malaysia. Malaysia's proposal, a major sticking point in the negotiations, would require U.S. insurer American International Group to divest some its 100 percent-owned Malaysian subsidiary, American International Assurance (AIA). In Kuala Lumpur, Prime Minister Mahathir Mohamad said the 51 percent ceiling would apply to all foreign insurers and the government was not prepared to allow 100 percent ownership. Barshefsky said that as part of the deal, the United States would be able to impose sanctions against any country that forced U.S. firms to divest any existing businesses. She said that provision was specifically aimed at Malaysia. "This practice of forced divestiture is unacceptable," she said. The agreement is scheduled to be ratified by the end of January 1999 and go into force by March that year, Barshefsky said. U.S. implementation will not require changes in U.S. laws that would require congressional action, she added. Gary Benanav, chairman and chief executive officer of New York Life Worldwide Holding, Inc., said the deal would allow U.S. insurancefirms to expand into many markets previously closed to them, particularly in Asia and Latin America. "Places like Thailand were difficult for us to enter into, now they are much more open," he told reporters. He said those countries would benefit from the long-term investments foreign insurance companies could bring, and they could be less dependent on short-term "hot money that disappears quickly." He said U.S. industry was "very supportive" of the deal. REUTERS Thanks, Tom