AINERO Free Trade Zone

The Ministry of Finance's first Finance Ministers Summit, hosted by the United Kingdom of Cattala in June 2012.
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Thomas
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AINERO Free Trade Zone

Postby Thomas » June 4th 2012, 7:23 pm

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AINERO Free Trade Zone[/centre]

As the formation of the AINERO Free Trade Area and the abolition of the single currency was passed into law last month, the minor details about the AINERO FTA should be ironed out with you, the AIN members, having an input into what the Ministry decides to do with our free trade area. There's several ways you can put across your thoughts on the matter:

~ Answer the following questions, posted below.
~ Ask your own questions to the Ministry and other members in here about the topic of discussion.
~ PM or Skype the Minister and suggest your own topics of discussion, changes to the order/structure of the summit and your own questions.

At the end of the summit's planned discussions, the floor will be opened to all members with queries and questions about the Ministry of Finance and Information's work, so please try and keep it civil and on topic until then.

Without further ado, here's that set of questions to generate discussion.

1. Do you want your country to be a part of the AINERO Zone?
2. Do you believe the Free Trade Area should be compulsory for all members?
3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?
4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?
5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

Feel free to discuss these questions and any of your own in this thread over the course of June. Other threads will also be started, so several topics may be being discussed at once during the month. :)
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Waterclaw
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Re: AINERO Free Trade Zone

Postby Waterclaw » June 4th 2012, 8:41 pm

1. No, I don't like the idea that if one or 2 economy's in the zone fails everyone in the zone dips down a little with it.
2. No
3. No
4. Yes (can't think of a discussion at the moment)
5. Still thinking

Yeah this sucks, but I don't know economics that well
Last edited by Waterclaw on June 4th 2012, 11:13 pm, edited 1 time in total.
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Re: AINERO Free Trade Zone

Postby RedAurora » June 4th 2012, 9:13 pm

1. No. (Purpose behind it is exactly what the Shawland government has pointed out.)
2. No. That would mean that Communist states would have to either leave the AIN or become Capitalist.
3. Yes. However, nations should be allowed to switch between blocs.
@Waterclaw: I think it just means a group of nations that use the same currency.
4. Free trade, in some areas and some situations, might be a better economic exercise. However, non-Capitalist nations should not be forced to exercise free trade.
5. Perhaps. I'm also puzzled on this.

I guess I suck at economics, as well.
Last edited by RedAurora on June 6th 2012, 4:58 am, edited 2 times in total.
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Jacob
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Re: AINERO Free Trade Zone

Postby Jacob » June 4th 2012, 9:46 pm

1. No
Ciarnesia wishes to reserve it's rights to regulate it's entry into a Free Trade treaty with any and all nations of the world.

2. No
Ciarnesia believes that every country should have the discretion to regulate their respective Free Trade rights except in the case of a formal Economic Alliance, of which the AIN is not.

3. No
Ciarnesia believes that every nation should have the right to establish and regulate it's own unique national currency if it so wishes.

4. Yes
Ciarnesia believes that Free Trade can be beneficial to any economy if it is properly executed, but does not encourage forcible Free Trade by any means outside of a formal Economic Alliance.

5. No
Ciarnesia believes that every country should be able to retain it's right to regulate immigration and travel, except in the case of a Free Travel Zone such as the Schengen Area, in which case it is completely obligatory and not in any way mandated upon the nation.

(( Remember we're also roleplaying how our countries would respectively address this... so think of your nation's politics as well. ))
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Re: AINERO Free Trade Zone

Postby futbolguy11 » June 4th 2012, 10:19 pm

1. Do you want your country to be a part of the AINERO Zone?

Yes, Yucatan as the second nation with the Most Free Trade Agreements would love to join and be a part of the AINERO Zone.

2. Do you believe the Free Trade Area should be compulsory for all members?

No, as other nations have said, every nation has the right to regulate and choose if they are willing or not to be a part of.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?

No, Yucatan believes that every nation can have its right to have their own currency or monetary unit if it wishes.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?

Yes, as Ciarnesia said, a Free Trade Union is beneficial.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

No, Yucatan wishes to remain the right to regulate its immigration and travel, and also other nations in the AIN.
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Re: AINERO Free Trade Zone

Postby Ace » June 5th 2012, 12:35 am

1. Do you want your country to be a part of the AINERO Zone?

No, Atlantsia wishes to regulate trade with other nations independently.

2. Do you believe the Free Trade Area should be compulsory for all members?

No, this would bypass profits from tariffs, which Atlantsia relies on in some cases.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?

No, Atlantsia is a steadily growing nation, has not had a history of volatile inflation, and thus would not benefit from a currency union.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?

The beneficial factors, depend upon a nation's resources. FT can be encouraged, but should not be mandatory by any means.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

This heavily depends upon execution and restrictions. What if a nation which was doing economically better than another nation with poor education and health began to recieve heavy immigration from the other?
Last edited by Ace on June 5th 2012, 2:27 pm, edited 1 time in total.
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Re: AINERO Free Trade Zone

Postby Fox » June 5th 2012, 2:55 am

1. Agard would require more indepth details and further discussion of this before taking the decision to the Parliment.

2. We believe Nations should be able to opt in or out of the free trade agreements of their own will depending on their current economic situations.

3. Asgard thinks this could benefit a few member nations that are in such close proximity such as the Asian nations, but don't beleive the rest of the AIN would benefit as much.

4. Asgard believes that free trade would be beneficial to the more developed nations and think some protection for smaller nations or certain industries could be a necessity, such as agriculture.

5. Asgard would be highly in favour of this option being included in to the agreement.
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Re: AINERO Free Trade Zone

Postby bigro » June 5th 2012, 7:00 am

1. Do you want your country to be a part of the AINERO Zone?
The IARC must decline on this offer as we gain too much from taxing foreign traders to lose this for the sake of some better relations.

2. Do you believe the Free Trade Area should be compulsory for all members?
Entirely not, this would damage the structure of several other AIN members and tarnish the I an AIN.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?
This could be beneficial to some newer members near to large groups of condensed AIN members but for others like us, this only stands to hinder. So no.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?
Not entirely, for some it is beneficial but for others like ourselves we thrive on taxing foreign shipping companies as this raises the amount of shipping companies in our own nation. With the current shipping boom we do not want to restrict this.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?
Freedom of movement is an entirely different thing from free trade. We support freedom of movement in it's entirety but not free trade.
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Thomas
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Re: AINERO Free Trade Zone

Postby Thomas » June 5th 2012, 9:12 am

A few notes should be pointed out regarding these questions.

AINERO Zone will be a Free Trade Area. This means that countries involved won't be able to place tariffs on imports from overseas. This would improve the competitiveness of less economically developed countries, who rely on agricultural exports. For example, the EU imposes tariffs on bananas from Ecuador, but not bananas from the Caribbean. Poorer farmers in Ecuador are nowhere near as competitive, as 20p in every £1 of bananas sold in the UK is tariff, not income to the farmer. More competition means lower prices for consumers and less protectionism.

Regional currency blocs would be things such as the Eurozone - for example, the nations of the Atlantic Commonwealth joining together to use one currency. Regional currencies are widely documented at the moment so not much explanation is required, I don't think.

Freedom of movement in this context is an open border policy. So for question 5, it's asking whether you would support an AIN version of the Schengen area, a border that enables free movement of people between different jurisdictions with limited or no restrictions to movement. This policy obviously couldn't go as far as no borders in such a global alliance, but would mean less checks on AIN citizens than non-AIN citizens.

If anyone has any further questions about the current topic, or if you want some more information, feel free to PM me or post in here. I know that some of this might go over people's heads a bit, so if I can help to explain it, I will try my best to do so. :)
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Re: AINERO Free Trade Zone

Postby Kevin » June 5th 2012, 12:56 pm

1. Do you want your country to be a part of the AINERO Zone?
The AINERO FTZ, with its promised removal of all existing trade barriers and regulations between AIN member nations, will result in more competitive exports and eventual economic expansion. At such a crucial period of time, with the US and EU economies stumbling and China's growth slowing, such a potential engine of growth is all the more important and necessary. With the above, Corraile fully supports the idea of a AINERO FTZ.

2. Do you believe the Free Trade Area should be compulsory for all members?
No. Every state has the sovereign right to determine its position on international trade, and other countries should therefore not be allowed to infringe upon another country;s right to self-determination by forcing them to join the AINERO FTZ against their will.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?
Regional currency blocs have their pros and cons. The improved ability to manage currency inflows and outflows due to a standardised currency between certain countries will certainly act as a catalyst for further growth. However, with increasing concern over the fiscal position of certain countries, it may not be fiscally prudent to implement such a policy at this time. As it stands, talks within the AC for the creation of a regional currency have stalled.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?
Free trade is the essence of globalisation and indeed, the entire purpose of the alliance, to work for the betterment of all citizens in its member states. There is no denying the potential benefits of free trade, such as improved inflows of capital into other countries to equalise uneven development within the alliance. Free trade can result in dramatic improvement in a country's economic standing and its standard of living.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?
The freedom of movement will allow for the free, unrestricted movement of labour within the Alliance's member states, by removing any requirements before any citizen of the Alliance can move to work and live in another country (within the Alliance, of course). This, naturally, will have ramifications for both the developed and developing countries within the Alliance, since unrestricted labour flow will result in a brain drain in the developing countries. Similarly, there will be a glut of labour, both skilled and unskilled, entering the developed countries. This saturates the job markets and can fuel the rise of radical conservatism and xenophobia, especially in the light of current economic conditions. Thus, while there are noble principles underlying the implementation of the freedom of movement, it is not advisable at this point in time.
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Re: AINERO Free Trade Zone

Postby Thomas » June 5th 2012, 1:19 pm

If you want an exemplar answer, please see the Corraile reply above. Thanks, @Kevin !

1. Do you want your country to be a part of the AINERO Zone?

The undeniable benefits of free trade are widespread and can help to improve lives across the world, with those in less developed economies benefiting from a more level playing field against the wealthy nations that use tariffs to actively inhibit the growth of poorer countries. The United Kingdom of Cattala will put its full support behind this globally significant free trade area.

2. Do you believe the Free Trade Area should be compulsory for all members?

Despite the pivotal socio-economic benefits to all nations in the AINERO FTA, we believe that making it compulsory will be detrimental to the development and global image of free trade, and will infringe on the democratic rights and principles of nations within our Alliance.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?

Monetary union could prove beneficial to some regions of the world, but would require considerable multinational efforts to be made sustainable in the long term. As we have seen in the Eurozone, monetary union requires some form of fiscal union as well. In regions like East Asia and Veratlantia, this could prove workable in the years to come.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?

Absolutely. Free trade is crucial to the development of an equal, sustainable world in the future and will not only support poorer, developing countries in the Alliance, but will encourage economic and political friendship between countries, as well as more competition and lower prices for consumers across the world. Embracing globalisation and using it to help all of the Alliance's citizens should be of paramount importance.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

Cattala opposes any form of relaxation of visa and immigration controls and believes that countries should always have the right to control the movement of incoming migrants.
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Re: AINERO Free Trade Zone

Postby Liberater444 » June 6th 2012, 4:31 am

1. Do you want your country to be a part of the AINERO Zone?
Yes. The Emperor and Economics Minister believe that the AINERO Zone will be beneficial to the Alliance's economy as a collective. However, there should be careful watch to make sure this Free Trade Zone doesn't turn into an obligation, much like the Eurozone appears to be today. Economic integration and cooperation is important to the international community, but economic dependence is detrimental to the community.
2. Do you believe the Free Trade Area should be compulsory for all members?
As per AIN's stance on sovereignty, the Empire believes that making the FTZ compulsory would both relinquish nations' economic sovereignty, and make the "Free" aspect moot.
3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?
No. Economics Minister Colwaal had provided the following input: "The current state of the AINERO Bloc is a negative one. Spread too thin, a currency can cause instability and prove fatal to regional economies if not managed properly. I feel that if a Bloc should only be implemented in the area only if members in that region agree to it. That being said, that exact sentiment is also the best environment for an economic bloc."
4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?
Yes. Free Trade allows savings to be made both in the consumer and the corporate areas. This also supports emerging economies, thereby accelerating the collective Alliance economy across the board. This FTZ should definitely be encouraged.
5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

The Empire would like to see a Freedom of Movement, however this poses serious security concerns. It would also negate national migration policies if the migrants are covered by the FTZ. The Ministry of the Population, Ministry of Interior Affairs, and the Ministry of Justice would allow an ease of movement, however Freedom of Movement is not an option, according to Interior Minister Gottfried. This decision is also compounded by the fact that the Tirnreich shares no borders with Alliance members, meaning that there would be migration checks regardless; the FTZ would merely grant ease to fellow Union members.


The Tirnreich would like to recognize the following delegates for their service at this Summit:
Minister Heinz Colwaal, ME
Minister Hans Fogle, MFA
Lord David Eikmaier OPM
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Re: AINERO Free Trade Zone

Postby Neeltro » June 6th 2012, 10:15 pm

1. Do you want your country to be a part of the AINERO Zone?

Yes, a country such as Onubis would benefit because of less trade barriers and would overall benefit the country in various aspects (social, economic, and political).

2. Do you believe the Free Trade Area should be compulsory for all members?

FTAs allow smaller nations to compete in the global market, thus the more larger, developed nations will have a boarder choice in the market.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?

The current situation in the E.U. proves that if one country is economically failing, it would cause other nations within the bloc to suffer along with the initial country. Therefore, economic blocs should not established.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?

There is much to lose if no free trade agreements are established because it stimulates the domestic and global economies, promotes global peace and diplomatic relations, and develops countries.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

The possible new FTA should include some form of freedom of movement as more regulations would cause foreign investors to invest elsewhere. However, it should be regulated in order to check for any possible security threats.

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Re: AINERO Free Trade Zone

Postby Ee99 » June 9th 2012, 11:11 am

1. Do you want your country to be a part of the AINERO Zone?

The Commonwealth of Torglavia believes that it would benefit from being in a free trade zone as it would provide tax free trade with other countries in the FTA. This would improve Torglavia's relationship with other nations and provide cheaper goods for business's around Torglavia.

2. Do you believe the Free Trade Area should be compulsory for all members?

No as every country has a right to economic sovereignty as stated by other nations.

3. Would you like to see regional currency blocs set up, to replace the previous AINERO currency union?

Torglavia doesn't beileve a regional currency would be viable in the current economic climate. If the economic situation is to improve then Torglavia would be cautious in joining a currency union as not only does this potentially place the fate of Torglavia's economy in the hands of other but actually converting everything to this new currency would be expensive.

4. Do you believe free trade is beneficial to all members of the Alliance and should be encouraged?

Free trade should only be encouraged if the supply of a certain good is stable. Free trade can be beneficial but only if used correctly and nation shouldn't be forced or just do it for the sake of it.

5. Do you think extending the Free Trade Area to include freedom of movement would benefit the Alliance and its member states?

Free movement could be beneficial between certain nations but should be optional as free movement between ,say, Torglavia and Asgard would be unnecessary though free movement between Torglavia and Valsgarde may be beneficial. This would be beneficial because the ferry service would gain slightly more customers and skilled workers could easily move to where the demand is. So if there was a doctor in Valsgarde that couldn't find work in Valsgarde then the doctor could easily move to Torglavia where there might be work and then easily go back to Valsgarde to see his family etc.
Last edited by Ee99 on June 13th 2012, 6:55 pm, edited 2 times in total.
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Thomas
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Re: AINERO Free Trade Zone

Postby Thomas » June 9th 2012, 11:34 am

Free trade doesn't make you reliant on another nation for a product. It means that you don't charge taxes (tariffs) on imports from the countries in the free trade area. You can still import from outside the free trade zone if their goods were cheaper priced. So if Cattala sold you olive oil, but Cattala had a civil war, you could stop buying Cattalian olive oil and start buying more Italian, as it's easier to supply.
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