Mr. Secretary, we both come with the common ground of a protectionist mindset on matters like these, but I am open to this agreement. What I would like to know is the long-term trajectory of trade with Mozambique. Is it fair to say that the largest motivation for this agreement is to boost the country's economic development and strengthen an African ally? Should Mozambique take off in the future well after the window to withdraw from the agreement closes and the terms are no longer as beneficial for Atlasia, is it worth sticking by indefinitely?
Great questions.
So as for motivation, Id say there are several.
- Broadly speaking, this administration is concerned with the potential consequences of absolute free trade. However we do not wish to suggest to the world that Atlasia is a cranky hermit state. We hope this (and other agreements in the works) will signal that Atlasia is not shutting its doors on commerce, especially if we renegotiate some existing free trade agreements in the future.
- we do not want china to corner the African market early and block the entry of our products
- Mozambique has little industrial development. While the low cost of living may seem like it could result in outsourcing, there is comparatively little infrastructure, unreliable electricity, and high transportation costs. That makes it better for our workers than say NAFTA or a potential EU deal.
- it helps atlasian businesses by opening new markets to sell in with comparatively little local competition, without risking outsourcing.
- it helps atlasian consumers by increasing the supply of commodities.
- it helps repair atlasias reputation in africa.
- it helps mozambique access medicines, foods, technology, and other products which were previously unavailable, and spurs more investment and economic development. This in turn makes a previous enemy much less antagonistic.
- it helps energy production by opening up mozambiques untapped natural gas reserves to the world matket.
- it gives us a trade foothold in the region to assist with pending trade agreements being negotiated with other african countries.
As for your concerns about potential unfair practices by Mozambique, sections 5 and 9 contain multiple mechanisms to address this risk. Section 9 requires Mozambique to participate in dispute resolutions (think trade court) if we sue them over trade issues. We also have anti-dumping language which allows us to freeze imports of certain goods if mozambiques seeks to flood our markets. We have countervailing duties which are basically retaliatory tariffs that can be imposed on mozambiques goods in proportion to their degree of cheating. And finally, we too would have the power to withdraw forever, as long as we give 6 months advance notice.