SENATE TREATY RATIFICATION: Atlasia-Mozambique Free Trade Agreement (Ratified)

[Anna Komnene]

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To save on space, a few sections are incorporating by reference comparable sections from the U.S.-Singapore FTA, text found here:

https://ustr.gov/sites/default/files/uploads/agreements/fta/singapore/asset_upload_file708_4036.pdf
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Sponsor: Siren of Fremont - for the Secretary of State

The floor is open for debate Senators.

In order to bring this to the floor quickly, I sponsored it. But if any of the Senators who aren't currently sponsoring something would like to sponsor, I'd be more than happy to turn it over to you.

[Mr. Reactionary]

After negotiations, the government of Mozambique is interested in adopting a free trade agreement with Atlasia.
In general, I am a skeptic of universal free trade and support measures to protect Atlasian interests during trade negotiations. That being said, I believe free trade with Mozambique IS in the best interest of Atlasia. The predominate exports of Mozambique are commodities which often aren't produced in large quantities in Atlasia due to climate and geological concentration. Additionally, Mozambique has a small industrial base, meaning this agreement will boost our own exports of manufactured goods. I believe this agreement will also begin the process of repairing our image in Sub-Saharan Africa. During the 1980s Mozambique was temporarily one of the poorest countries in the war due to our backing proxies in a civil war. Since then, Mozambique has renounced marxism, violence has dropped exponentially, and free elections regularly occur.

Some specifics: The treaty will exclude BIS controlled technology from export, which basically means no dangerous technology or cyber stuff. Drugs which are illegal in either country are also excluded, as are endangered animals. And food may still be inspected for safety.

We managed to secure anti-dumping measures and the right to use countervailing duties if mozambique violates the terms. We also get very good intellectual property protections. Mozambique gets a pass on using government run agricultural marketing boards which help their small farmers pool their crops. Both countries can still have government policies which prioritize the purchasing of goods from their own producers, and we wont enforce the lacey act against timber imports from Mozambique.

The agreement would be phased in over 15 months and either party can withdraw with 6 months notice.

To cut down on length, for certain treaty sections I have decided to incorporate them by reference several provisions from the FTA with Singapore found below: (https://ustr.gov/sites/default/files/uploads/agreements/fta/singapore/asset_upload_file708_4036.pdf)

While not part of the treaty, I will disclose that the President and myself have pledged to use Atlasian influence with the IMF and World Bank to help Mozambique finance a LNG terminal so that they may begin exporting their untapped gas reserves.

I will gladly take any questions from the Senate. Thank you.

[Wikipedia delenda est]

Mozambique has democratized extensively since the 1980s, and I believe that a free trade deal would benefit both Atlasia and Mozambique. However, I am wary about the intellectual property protections included in this bill. I fear that they may benefit companies in the software, entertainment, and especially pharmaceutical industries at the expense of working Atlasians. A specific example of this, relating to pharmacy, is the possibility that these protections could increase drug prices. Also, intellectual property protections, which are basically a form of protectionism that still manage to be included in "free trade" deals like the TPP, could serve to continue the troubling trend of increasing income inequality in Atlasia.

[Mr. Reactionary]

Mozambique has democratized extensively since the 1980s, and I believe that a free trade deal would benefit both Atlasia and Mozambique. However, I am wary about the intellectual property protections included in this bill, as I fear that they may benefit industries like pharmaceutical companies at the expense of working Atlasians. Such protections, which are basically a form of protectionism that still manage to be included in free trade deals like the TPP, could serve to continue the troubling trend of increasing income inequality in Atlasia.

I agree with Senator Wallace that big pharma wields way to much power through its IP. I was very pleased when this body recently passed patent reform and medicine reform, and I believe that (assuming the house passes them as well) they will result in lower medicine prices as drug patent protections are weakened. To ensure that those benefits are realized by ALL consumers, instead of just the Atlasian ones, this treaty is worded so that mozambique only needs to comply with whatever law is current for Atlasia. That means when the house does pass those pending reforms, they will apply to Mozambique as well.

Add in the additional scale economies of Mozambique customers and big pharma would probably just decide that the easier wau to make more money is consolidating and focusing on delivering more product to make that money. That drops prices, so things like epi-pens will go from $300 per dose to $25 per dose. I could buy Epinephren for "veterinary uses" for $4 per unit online, and its 3 x as much as what's in an epi-pen, and its not like they have separate factories for dog medecine and people medecine. The price difference is a product of evergreen patents which will soon be restricted under the future changes. So the minimum entry price will soon be the same between the 2 countries.

I would argue that the bigger cost barrier to medicine reaching the Mozambique market would be transportation costs. The financing provisions in section 7 of this treaty should help by opening up credit for mozambique importers or wholesalers, and I believe Senator Scott is currently working on a bill that would reform export financing in Atlasia which will also help, but without more boat shipping it would still be costly to move medicine to an isolated market. Thats why this administration is working hard to expand trade to Sub-Saharan africa.This administration is currently talking to malawi and has future meetings planned once the GM confirmation is complete. That increase in scale will make shipping more common.

So in conclusion, I believe that this trade agreement will lead to lower prices.

[The world will shine with light in our nightmare]

Mozambique has democratized extensively since the 1980s, and I believe that a free trade deal would benefit both Atlasia and Mozambique. However, I am wary about the intellectual property protections included in this bill, as I fear that they may benefit industries like pharmaceutical companies at the expense of working Atlasians. Such protections, which are basically a form of protectionism that still manage to be included in free trade deals like the TPP, could serve to continue the troubling trend of increasing income inequality in Atlasia.

I agree with Senator Wallace that big pharma wields way to much power through its IP. I was very pleased when this body recently passed patent reform and medicine reform, and I believe that (assuming the house passes them as well) they will result in lower medicine prices as drug patent protections are weakened. To ensure that those benefits are realized by ALL consumers, instead of just the Atlasian ones, this treaty is worded so that mozambique only needs to comply with whatever law is current for Atlasia. That means when the house does pass those pending reforms, they will apply to Mozambique as well.

Add in the additional scale economies of Mozambique customers and big pharma would probably just decide that the easier wau to make more money is consolidating and focusing on delivering more product to make that money. That drops prices, so things like epi-pens will go from $300 per dose to $25 per dose. I could buy Epinephren for "veterinary uses" for $4 per unit online, and its 3 x as much as what's in an epi-pen, and its not like they have separate factories for dog medecine and people medecine. The price difference is a product of evergreen patents which will soon be restricted under the future changes. So the minimum entry price will soon be the same between the 2 countries.

I would argue that the bigger cost barrier to medicine reaching the Mozambique market would be transportation costs. The financing provisions in section 7 of this treaty should help by opening up credit for mozambique importers or wholesalers, and I believe Senator Scott is currently working on a bill that would reform export financing in Atlasia which will also help, but without more boat shipping it would still be costly to move medicine to an isolated market. Thats why this administration is working hard to expand trade to Sub-Saharan africa.This administration is currently talking to malawi and has future meetings planned once the GM confirmation is complete. That increase in scale will make shipping more common.

So in conclusion, I believe that this trade agreement will lead to lower prices.

I don't have a bill like that in the works.  My understanding was that the executive branch levied more influence over trade policy specifics (and I didn't want to introduce anything that could potentially jeopardize existing trade agreements anyway, although we should assess which of our current trade deals are fair and which ones aren't and should be renegotiated).

[Mr. Reactionary]

I don't have a bill like that in the works.  My understanding was that the executive branch levied more influence over trade policy specifics (and I didn't want to introduce anything that could potentially jeopardize existing trade agreements anyway, although we should assess which of our current trade deals are fair and which ones aren't and should be renegotiated).

We can discuss with maps sometime. I have one of existing free trade agreements as well as places id like to expand to and places id like to withdraw from.

[PPT Spiral]

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?

[Mr. Reactionary]

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.

[Anna Komnene]

Are there any more questions?

[Anna Komnene]

Thank you for all your answers so far Mr. Secretary. If there are no objections or further questions, I'll start the final vote in 24 hours.

[Anna Komnene]

We will now have a final vote on the ratification of the Atlasia-Mozambique Free Trade Agreement. Senators please vote AYE, NAY, or ABSTAIN.

[The world will shine with light in our nightmare]

Aye.

[PPT Spiral]

Aye

[Wikipedia delenda est]

Aye

[Anna Komnene]

Aye

[Anna Komnene]

With four votes in favor and 2 not voting, the Atlasia-Mozambique Free Trade Agreement is hereby ratified by the Atlasian Senate.

You must be logged in to read this quote.

To save on space, a few sections are incorporating by reference comparable sections from the U.S.-Singapore FTA, text found here:

https://ustr.gov/sites/default/files/uploads/agreements/fta/singapore/asset_upload_file708_4036.pdf
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People's Regional Senate
Passed 4-0-2 in the Atlasian Senate assembled

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