Opening Markets in a Turbulent World

Maurice R. Greenberg

American International Group (AIG) has always been at the forefront of opening markets. AIG was born in China in 1919 and has since expanded into every part of the world. Time after time, AIG was the first company to identify opportunities in new markets and the first to introduce new products around the world. AIG companies were the first foreign insurance companies to enter Japan, South Korea, and many Southeast Asian countries. Our joint ventures in Central and Eastern Europe were the first of their kind in those markets. We were the first American insurers in many Middle Eastern countries. Beginning during World War II, AIG established a strong presence in Latin America, which had been traditionally dominated by European companies. We have introduced literally hundreds of new products to markets around the world that have been replicated by other domestic and foreign companies. Innovation is a way of life for us and we have always seen opportunity in markets that were too remote or too foreign for our competition.

AIG is in the service business, but it was not until the Uruguay Round of the GATT negotiations that services were even considered by the World Trade Organization (WTO). I was serving at the time on the President's Advisory Committee on Trade Negotiations, and Bob Strauss was the U.S. Trade Representative. When we raised the topic of services, it was considered very strange since all previous trade negotiations had focused on tangible goods, things that you could touch and see. Although trade in services was first raised in the early days of the Uruguay Round, it did not get anywhere during those negotiations.

Prior to the Uruguay Round, AIG took the lead in creating the Coalition of Service Industries-a group of U.S.-based service companies, including American Express and Citigroup among others-to help lobby for trade in services to be negotiated. Today, trade in services is part of all trade negotiations, American service industries now have better access to foreign markets and enjoy protection in those foreign markets-and U.S. foreign policy has been furthered as a consequence…

Maurice R. Greenberg is Chairman and Chief Executive Officer of American International Group (AIG).