| WYSTERIAN UNION - REPUBLIC OF NEPHIA TRADE AGREEMENT AN AGREEMENT UNDER THE WU PARTNERSHIP FOR PROSPERITY PROGRAMME Preamble The Wysterian Union and its constituent governments and the Republic of Nephia ("the parties") resolved to: Reinforce the ties of friendship and cooperation between them: Strengthen their economic relations and further expand bilateral trade and investment; Establish clear and mutually advantageous rules governing their trade and systematically reduce the barriers to trade that exist between them; Encourage a closer economic and political partnership that will bring economic and social benefits and create new employment opportunities, and improve living standards for their people; Promote a predictable, transparent, and consistent business environment that will assist private business to plan effectively and use resources efficiently; Have agreed as follows: 1. Definitions OOC: Out of character, i.e., real life VAT: Value added tariff, a general tariff that is derived from taking an agreed upon percentage of a good's wholesale cost, and submitting that percentage (in monies) to the authorities of the party to which you are exporting to. 2. National Treatment and Market Access for Goods, Services, and Investment 2.a. Scope and coverage Except as noted, this chapter applies to goods, services, and investment. 2b. Recognition of national currencies Both parties agree that the national currencies of all parties involved are legal tender for the payment of all debts, public and private. 2.c. Reduction of trade barriers The parties agree to an incremental elimination of all trade barriers to goods, services, and investment along the following schedule: Immediately: Implementation of a flat, across the board value added tariff (VAT) of five percent on all imports of goods, services, and investment. At the end of five months: Decrease of one percent (4%) in the VAT. At the end of six months: Further decrease in VAT by one percent (3%). At the end of seven months: Further decrease in VAT by one percent (2%). At the end of eight months: Further decrease in VAT by one percent (1%). At the end of nine months: Full free trade (no VAT). 3. Certification 3.a. Implementation of certification processes The parties agree that exports of goods under the agreement shall be subject to certification by a competent national representative or in the case of the WU, supranational representative. This competent representative shall have broad oversight of trade, commerce, or the treasury in their portfolio. This representative may appoint a designate to oversee the certification process. 3.b Applicability To ensure that the goods traded under this agreement originate from either Nephia or the WU, certificates must be signed and assigned a unique identifier and be made accessible for each shipment of goods traded between the parties. This is to ensure that third-party, free riders do not benefit from the terms of the agreement. 3.c Breech of certification Any party which knowingly falsifies certification documents has breeched the agreement. Upon being breeched, this agreement immediately becomes null and void, and the party not in breech retains the right to erect retaliatory, punitive tariffs. 4. Creation of a joint trade office 4.a This agreement authorizes a joint trade office to be established in the non-WU party’s state. This office will monitor certification and coordinate a list of non-tradable items (e.g., hazardous or explosive materials, illicit weaponry). 5. Withdrawal from the agreement 5.a Any party may withdraw from the agreement given that they provide an OOC week;s notice of intent to withdraw. 6. Treaty enforcement This agreement becomes immediately enforceable as soon as it is signed by a representative of the Wysterian Union and and the Republic of Nephia. 7. Signatories Helva Laata Maani, D.Econ., High Minister for Trade and Commerce, The Wysterian Union Dayton Hargrove, President, The Republic of Nephia July 31, 2005 |
 |
 |