ACTION REQUESTED
December 6, 1996
TO: INTERNATIONAL COMMITTEE No. 42-96
RE: MARKET ACCESS ISSUES IN MEXICO AND JAPAN
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Treasury Department officials have asked the Institute for information about the market
access issues of most interest to Institute members in Mexico and Japan. This information will
be used by Treasury officials in connection with discussions with Mexico assessing progress
under NAFTA and in discussions with Japanese officials about Japan’s recently announced
intention to liberalize further its financial services market.
In preliminary discussions with Treasury officials, we have identified two priorities
with respect to Mexico: obtaining the ability for Institute members to participate in managing
assets under Mexico’s new pension system and obtaining elimination by Mexican regulators of
the restrictions that prevent Mexican mutual funds from investing in non-Mexican securities.
With respect to Japan, we have advised Treasury officials that Institute members
generally share the concerns expressed in the attached memorandum prepared by the
American Chamber of Commerce in Japan. In particular, we highlighted the need for Japan to
permit foreign investment managers to use the services of their overseas affiliates in servicing
Japanese investment trust clients and the need to simplify the partnership structure required
for managing public pension plan assets. We also advised Treasury that the absence of a
credible system of performance measurement for Japanese investment trusts remains a problem
that adversely affects the ability of investment trusts to advertise performance in Japan.
Please let me know as soon as possible if you have any comments about the issues the
Institute has identified or if there are additional issues with respect to Mexico or Japan that we
should bring to the Treasury Department’s attention. You can reach me by phone at 202 326
5826 or by fax at 202 326 5839.
Mary S. Podesta
Associate Counsel - International
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