Service Barriers

(1) Insurance

   The Financial Services Agency (FSA) normally utilizes the Public Comment Procedures and the Financial Council when new rules are being introduced, in order to have exchange opinions with concerned companies, including foreign ones to ensure transparency in administrative procedures. Thus, the report has inaccurately stated that there are issues the U.S. Government needs to address. The FSA has followed these processes to seek a broad range of opinions with regard to enactment of the rules necessary for the direct mutual cross-entry (hontai-sannyu) into the third sector. It is obvious that there is open competition in the Japanese insurance market.

   Insurance regulation in the United States has problems of its own, including delay in deregulation, lengthy processing period for product approval as seen in many cases, and considerable number of regulations discriminating against foreign companies. Thus, it is inappropriate for the report to refer problem in the Japanese market.

   The Joint Status Report of the Enhanced Initiative describes the respective measures that the two government should take in their respective countries. Those measures are not "new commitments" that the Government of Japan is going to implement. Therefore, the description in the report is inaccurate.

   In the Third Joint Status Report, Ministry of Public Management, Home Affairs, Post and Telecommunications confirms that, in response to requests from private interested parties, it will meet with those parties to explain matters regarding the formulation of proposals to seek from the Diet an amendment to the law to expand, or change, Kampo products. The issue of Kampo has already been dealt with and the description of Kampo expansion in the report is regrettable.

(2) Professional Services

a. Accounting and Auditing Services

   Japan's Certified Public Accountant examination is open to all nationalities. Therefore, the statement in the report that "a foreign accountant must pass a special examination for foreigners" is inaccurate. In the United States, only those who are certified as CPAs in the United States are allowed to provide audit services in the U.S. as well. Moreover, generally speaking, in major industrialized countries including the United States, being certified to provide audit services in a foreign country does not automatically qualify that person to provide audit services in their own country.

b. Legal Services

   The following was generally agreed at the Judicial System Reform Council in February 2001: i) In order to actively promote cooperation and joint action between Bengoshi and Gaikokuho-Jimu-Bengoshi (G.J.B.), such issues as the question of relaxing the requirements for specific joint enterprises (tokutei-kyodo-jigyo) between Bengoshi and G.J.B will be considered positively. ii) The question of relaxing the prohibition against G.J.B. from employing Bengoshi still requires careful study from a broad perspective, with due regard to the opinions of various countries on this issue. The Ministry of Justice is ready to take pertinent measures based on the results of the deliberations in the Judicial System Reform Council.

   Up to one year of employment by Bengoshi or G.J.B. before being certified as G.J.B. can be counted towards the three-year experience. As such a period cannot be regarded as a period of performing legal services, there is a rational basis for this.

   Under the current law, G.J.B. is allowed to perform legal business regarding third-country law provided that G.J.B. obtain written advice on each issue from competent persons. Japan does not see this as "discriminatory restrictions."

   The year the law was amended to allow tokutei-kyodo-jigyo was 1994.