Republic, Commonwealth Sign Historic Trade Agreement 08/11/3133
INN - Interstellar News Network
GENEVA, TERRA—After months of talks, including ten weeks of intense back-and-
forth negotiations on Terra, yesterday Republic Exarch Damien Redburn signed an
historic long-term trade agreement with Lyran Commonwealth Ambassador Wilhelm
Steiner.
Exarch Redburn appeared alongside Ambassador Steiner for a press conference just
minutes after the signing ceremony. Said the Exarch, “We have had a long history of
close relations, both diplomatic and economic, with our friends within the Lyran
Commonwealth. This agreement simply represents the natural progression in that
relationship.”
Ambassador Steiner had similar sentiments. “This agreement is nothing more than the
official recognition of a prosperous interstellar trade that our two nations have had
with each other for quite a long time. We have always had open and free borders with
each other. It just took us this long to codify that.”
The agreement, which some insiders say weighs in at several thousand printed pages,
opens The Republic’s borders to almost anything the Lyran Commonwealth may want
to ship into our nation and likewise keeps the door open for trade the other way.
There are, of course, conditions, riders and more legalese to codify the rules and
regulations for this trade, but supporters all agree that this treaty will do nothing but
benefit The Republic.
In an exclusive INN interview following the signing ceremony, the Exarch had this to
say. “Our nation, like every other, was hit hard by the loss of the HPG network.
Interstellar trade nearly ground to a halt, and that hurt us terribly. We may be the seat
of Humanity, but even we still rely upon selling our goods and resources to worlds
throughout the Inner Sphere, and beyond. We have been hurt by the events of the
past year, but this agreement is a clear signal that we are on our way to healing those
wounds.”
But what of detractors’ statements about the agreement? Many believe that this
agreement will open the doors wide for the Commonwealth and result in a trade
deficit that will bankrupt our already weakened economy, inviting in Lyran business to
take over what they couldn’t possibly conquer through military action. Senator
Warren Halverson, backed by ten of The Republic’s Senators, attempted to block this
agreement with all their might, but in the end, especially with the Exarch’s vocal
support, the treaty passed in the Senate.
Senator Halverson hasn’t been dissuaded from his opposition, though. “This
agreement is a time bomb ready to explode. Already Lyran interests have invaded our
nation and taken advantage of our devastated economy. They’re buying up land at cut-
rate prices and extending lines of credit to businessmen driven to desperation by near-
bankruptcy. The only thing this agreement will ensure is that the Steiners will own our
nation before the end of the decade.”
If Senator Halverson represents the opposition, Senator Ross Kain, Chairman of the
Senate Trade Subcommittee, it one of its greatest supporters. “We’ve argued the
basics of this agreement [in the subcommittee] for more than half a year, and spent
the better part of two months hammering out the legal wording before signing off on
it. Our only concern is for our citizens, and I think we’ve more than protected the
people of this great nation from any potential hazards. I’ve heard some individuals call
this a minefield. I think it’s more like a map through the minefield.”
So what will this trade agreement do for us?
Well, first off it virtually eliminates the tariffs on all Republic goods shipped into the
Lyran Commonwealth and likewise eliminates tariffs on most Lyran goods imported
into the Republic. Certain goods, like military hardware and some restricted
substances, would still have governmental license fees applied, but for the most part
the border would be opened. Likewise, citizens traveling abroad within the
Commonwealth will have an easier time of it at border stops and will find their taxes
on most transactions reduced significantly.
Both governmental and private analysts agree that this treaty will bring a boon to The
Republic within the next twelve to eighteen months. In the short term, The Republic
will see a four or fivefold increase in exports to the Commonwealth, as the reduction
in tariffs brings prices on our goods down below other nations’ products, especially
when transportation costs are factored in. Our worlds are among the most heavily
populated in the Inner Sphere, but are also resource rich. Many worlds export far
more than they import, a fact that will only serve to increase the profits from this
agreement. The treaty also considerably lowers the barriers for businesses from both
nations to set up divisions within the other, potentially bringing even more Lyran
money into the Republic.
But detractors concentrate on the flip side of this agreement. They argue that The
Republic’s borders are now wide open to millions of Lyran capitalists, intent on one
goal and one goal only: owning The Republic of the Sphere. The Commonwealth has
always had a much more robust economy than The Republic, or any other Inner
Sphere nation for that matter, and has managed to weather the economic depression
of the last year with little difficulty. As Senator Halverson alluded to, thousands of
Republic businesses, facing the prospect of bankruptcy and turned down by creditors
here within The Republic of the Sphere, have turned to Lyran bankers, who in turn
have been more than happy to lend money to these beleaguered businessmen at decent
interest rates.
And what are the results of these cross-border loans?
Unfortunately, not good for many Republic businesses. So far there has been no exact
numbers, but it seems that Commonwealth interests have called in quite a few credit
markers and gained the assets of scores of bankrupt Republic businesses in the
process. More chilling to the opponents of this trade deal is that these Lyran bankers
are reportedly selling the assets off to interests from their own nation, keeping the
money “all in the family,” so to speak, and leaving Republic businessmen high and dry.
At the same time, the Lyrans are already shipping hundreds of millions of tons of
goods into The Republic, many with price tags that undercut similar home-grown
products. Entire convoys of cargo DropShips are reportedly sitting just on the other
side of the Commonwealth-Republic border, waiting for the trade agreement to go
into affect (and, of course, for enough JumpShips to transport them into The
Republic). Likewise, more than a hundred major Lyran corporations have applied for
permits to conduct business within The Republic, business that will now be
significantly less expensive to conduct thanks to the trade agreement.
“I can’t believe the Exarch had the incredible short-sightedness to sign that damnable
agreement,” said Roderick Han, former President and CEO of the now-bankrupt T.C.
Enterprises, a one-time major supplier of navigation computers to shipyards
throughout the Inner Sphere. “First the Senate refused to authorize the short-term
emergency loans they are legally required to provide in times of emergency, and now
they hand over the keys to the house, so to speak. I have shipments worth well over
two billion C-bills sitting in warehouses right now because the communications
blackout prevented us from getting payment transferred to us. When the Senate
refused to authorize short-term loans, we had to go to other sources to get the capital
we needed to stay open, and the Lyrans were the only ones willing to make the loans.
Now that they’ve called in the markers, and with this damn agreement in place, they
get to liquidate our assets at ridiculous prices. Semier Data Tron on Tharkad now gets
to buy up five years worth of stock at a quarter its value. You tell me who’s
benefiting here.”
On the other hand, it’s not just Lyran Commonwealth businesses that are benefiting
from the economic depression that has hit The Republic. Jacob Bannson has made
similar deals that in just the past three months have brought a dozen medium to large
companies under his corporation’s banner, with dozens more sitting on the potential
chopping block, further increasing his own fortune and prestige. Likewise, Bannson,
and a number of other Republic businessmen, are taking as much advantage of the
opening of the Lyran border as the Lyrans are. Which means that the jury’s still out
on whether the trade agreement is a good thing.
So what should we do?
“This agreement gives us all the chance to get back to a state of normalcy,” says
Exarch Redburn, “and before any of the other nations can. We have an incredible
opportunity here, but we all must have the confidence to take that opportunity and
turn it into a reality.”
Towne Log
+ Somebody’s living in a fantasy world here. We’re already hemorrhaging cash to the
Lyrans, and instead of using a tourniquet, the Exarch made the slash larger. Just who
is he really working for? This is the first big move he’s made since the blackout, and
he’s just given away the keys to the kingdom. :- Chungabunga
+ For the first time in my life, I’m speechless. If this is a prelude of things to come,
this entire nation is screwed. Chunga’s right. We’re just bleeding C-bills into the
Commonwealth. :- PanzerGruppe
+ What you’re seeing is just the reactionaries. This thing will be good for us in the
long run. Think of it this way: out of everyone in the Inner Sphere, the Lyrans have
the most money and the best economy. If we’re going to hitch our wagon to anyone,
it ought to be to them. And we’ve got resources that they need, natural resources,
that they’ll now get for cheaper – and before you go there, they’re going to get them
for cheaper because all those extra taxes have been cut. Because they can get them
cheaper here, they’ll buy more. The more they buy, the more they spend. The more
they spend, the more money we make. The more we make, the more taxes we pay.
The more taxes we pay, the more the government makes, suddenly making up for all
those taxes that got cut. And the more we make, the more we spend – preferably
within The Republic – and the even more we make. The wonders of trickle-down
economics. :- CMike
+ Don’t tell me you buy into that! Trickle down economics is a fantasy invented by a
bunch of fascists looking for a reason to spend more money on conquering their so-
called enemies. The Exarch just allowed the Steiners to do something they’ve been
trying to do since The Republic was formed. But he’s been in bed with them for
years. He just needed the right time to spring his trick. :- Hippee
+ Oh, boy, not again… Next thing you know, FM is going to go off on some sort of
uber-conspiracy between ComStar, the Steiners and Clan Wolverine. Pretty soon, a
dozen regiments of black ’Mechs piloted by genetically enhanced ants will drop on
Terra and declare it their queen-hive-home. :- Goobs86
+ So, if we assume CMike is right about the trickle thing and that Hippee is insane,
there’s still the thing about the Lyran bankers. They’ve been trying to get into The
Republic for years. Decades, really. And this agreement opened the door for them.
Hippee is right about that (but that only!). So we’ve got an almost immediate deficit
direct to the Lyran coffers that we’ve gotta make back up. That’s the hard part of it
all. :- Kemo
+ Well, who knows, this could turn out to be a good move. It may well open up some
new avenues into the Commonwealth. And maybe Bannson can slap them around a bit
on their own turf… nothing wrong with that, if you ask me. We know they’re going
to try to take advantage of this, and if we do, Redburn sure does. And if he knows,
then he’s got a plan. And if he’s got a plan, then my worries are pretty much gone. :-
Pooky
INN - Interstellar News Network
GENEVA, TERRA—After months of talks, including ten weeks of intense back-and-
forth negotiations on Terra, yesterday Republic Exarch Damien Redburn signed an
historic long-term trade agreement with Lyran Commonwealth Ambassador Wilhelm
Steiner.
Exarch Redburn appeared alongside Ambassador Steiner for a press conference just
minutes after the signing ceremony. Said the Exarch, “We have had a long history of
close relations, both diplomatic and economic, with our friends within the Lyran
Commonwealth. This agreement simply represents the natural progression in that
relationship.”
Ambassador Steiner had similar sentiments. “This agreement is nothing more than the
official recognition of a prosperous interstellar trade that our two nations have had
with each other for quite a long time. We have always had open and free borders with
each other. It just took us this long to codify that.”
The agreement, which some insiders say weighs in at several thousand printed pages,
opens The Republic’s borders to almost anything the Lyran Commonwealth may want
to ship into our nation and likewise keeps the door open for trade the other way.
There are, of course, conditions, riders and more legalese to codify the rules and
regulations for this trade, but supporters all agree that this treaty will do nothing but
benefit The Republic.
In an exclusive INN interview following the signing ceremony, the Exarch had this to
say. “Our nation, like every other, was hit hard by the loss of the HPG network.
Interstellar trade nearly ground to a halt, and that hurt us terribly. We may be the seat
of Humanity, but even we still rely upon selling our goods and resources to worlds
throughout the Inner Sphere, and beyond. We have been hurt by the events of the
past year, but this agreement is a clear signal that we are on our way to healing those
wounds.”
But what of detractors’ statements about the agreement? Many believe that this
agreement will open the doors wide for the Commonwealth and result in a trade
deficit that will bankrupt our already weakened economy, inviting in Lyran business to
take over what they couldn’t possibly conquer through military action. Senator
Warren Halverson, backed by ten of The Republic’s Senators, attempted to block this
agreement with all their might, but in the end, especially with the Exarch’s vocal
support, the treaty passed in the Senate.
Senator Halverson hasn’t been dissuaded from his opposition, though. “This
agreement is a time bomb ready to explode. Already Lyran interests have invaded our
nation and taken advantage of our devastated economy. They’re buying up land at cut-
rate prices and extending lines of credit to businessmen driven to desperation by near-
bankruptcy. The only thing this agreement will ensure is that the Steiners will own our
nation before the end of the decade.”
If Senator Halverson represents the opposition, Senator Ross Kain, Chairman of the
Senate Trade Subcommittee, it one of its greatest supporters. “We’ve argued the
basics of this agreement [in the subcommittee] for more than half a year, and spent
the better part of two months hammering out the legal wording before signing off on
it. Our only concern is for our citizens, and I think we’ve more than protected the
people of this great nation from any potential hazards. I’ve heard some individuals call
this a minefield. I think it’s more like a map through the minefield.”
So what will this trade agreement do for us?
Well, first off it virtually eliminates the tariffs on all Republic goods shipped into the
Lyran Commonwealth and likewise eliminates tariffs on most Lyran goods imported
into the Republic. Certain goods, like military hardware and some restricted
substances, would still have governmental license fees applied, but for the most part
the border would be opened. Likewise, citizens traveling abroad within the
Commonwealth will have an easier time of it at border stops and will find their taxes
on most transactions reduced significantly.
Both governmental and private analysts agree that this treaty will bring a boon to The
Republic within the next twelve to eighteen months. In the short term, The Republic
will see a four or fivefold increase in exports to the Commonwealth, as the reduction
in tariffs brings prices on our goods down below other nations’ products, especially
when transportation costs are factored in. Our worlds are among the most heavily
populated in the Inner Sphere, but are also resource rich. Many worlds export far
more than they import, a fact that will only serve to increase the profits from this
agreement. The treaty also considerably lowers the barriers for businesses from both
nations to set up divisions within the other, potentially bringing even more Lyran
money into the Republic.
But detractors concentrate on the flip side of this agreement. They argue that The
Republic’s borders are now wide open to millions of Lyran capitalists, intent on one
goal and one goal only: owning The Republic of the Sphere. The Commonwealth has
always had a much more robust economy than The Republic, or any other Inner
Sphere nation for that matter, and has managed to weather the economic depression
of the last year with little difficulty. As Senator Halverson alluded to, thousands of
Republic businesses, facing the prospect of bankruptcy and turned down by creditors
here within The Republic of the Sphere, have turned to Lyran bankers, who in turn
have been more than happy to lend money to these beleaguered businessmen at decent
interest rates.
And what are the results of these cross-border loans?
Unfortunately, not good for many Republic businesses. So far there has been no exact
numbers, but it seems that Commonwealth interests have called in quite a few credit
markers and gained the assets of scores of bankrupt Republic businesses in the
process. More chilling to the opponents of this trade deal is that these Lyran bankers
are reportedly selling the assets off to interests from their own nation, keeping the
money “all in the family,” so to speak, and leaving Republic businessmen high and dry.
At the same time, the Lyrans are already shipping hundreds of millions of tons of
goods into The Republic, many with price tags that undercut similar home-grown
products. Entire convoys of cargo DropShips are reportedly sitting just on the other
side of the Commonwealth-Republic border, waiting for the trade agreement to go
into affect (and, of course, for enough JumpShips to transport them into The
Republic). Likewise, more than a hundred major Lyran corporations have applied for
permits to conduct business within The Republic, business that will now be
significantly less expensive to conduct thanks to the trade agreement.
“I can’t believe the Exarch had the incredible short-sightedness to sign that damnable
agreement,” said Roderick Han, former President and CEO of the now-bankrupt T.C.
Enterprises, a one-time major supplier of navigation computers to shipyards
throughout the Inner Sphere. “First the Senate refused to authorize the short-term
emergency loans they are legally required to provide in times of emergency, and now
they hand over the keys to the house, so to speak. I have shipments worth well over
two billion C-bills sitting in warehouses right now because the communications
blackout prevented us from getting payment transferred to us. When the Senate
refused to authorize short-term loans, we had to go to other sources to get the capital
we needed to stay open, and the Lyrans were the only ones willing to make the loans.
Now that they’ve called in the markers, and with this damn agreement in place, they
get to liquidate our assets at ridiculous prices. Semier Data Tron on Tharkad now gets
to buy up five years worth of stock at a quarter its value. You tell me who’s
benefiting here.”
On the other hand, it’s not just Lyran Commonwealth businesses that are benefiting
from the economic depression that has hit The Republic. Jacob Bannson has made
similar deals that in just the past three months have brought a dozen medium to large
companies under his corporation’s banner, with dozens more sitting on the potential
chopping block, further increasing his own fortune and prestige. Likewise, Bannson,
and a number of other Republic businessmen, are taking as much advantage of the
opening of the Lyran border as the Lyrans are. Which means that the jury’s still out
on whether the trade agreement is a good thing.
So what should we do?
“This agreement gives us all the chance to get back to a state of normalcy,” says
Exarch Redburn, “and before any of the other nations can. We have an incredible
opportunity here, but we all must have the confidence to take that opportunity and
turn it into a reality.”
Towne Log
+ Somebody’s living in a fantasy world here. We’re already hemorrhaging cash to the
Lyrans, and instead of using a tourniquet, the Exarch made the slash larger. Just who
is he really working for? This is the first big move he’s made since the blackout, and
he’s just given away the keys to the kingdom. :- Chungabunga
+ For the first time in my life, I’m speechless. If this is a prelude of things to come,
this entire nation is screwed. Chunga’s right. We’re just bleeding C-bills into the
Commonwealth. :- PanzerGruppe
+ What you’re seeing is just the reactionaries. This thing will be good for us in the
long run. Think of it this way: out of everyone in the Inner Sphere, the Lyrans have
the most money and the best economy. If we’re going to hitch our wagon to anyone,
it ought to be to them. And we’ve got resources that they need, natural resources,
that they’ll now get for cheaper – and before you go there, they’re going to get them
for cheaper because all those extra taxes have been cut. Because they can get them
cheaper here, they’ll buy more. The more they buy, the more they spend. The more
they spend, the more money we make. The more we make, the more taxes we pay.
The more taxes we pay, the more the government makes, suddenly making up for all
those taxes that got cut. And the more we make, the more we spend – preferably
within The Republic – and the even more we make. The wonders of trickle-down
economics. :- CMike
+ Don’t tell me you buy into that! Trickle down economics is a fantasy invented by a
bunch of fascists looking for a reason to spend more money on conquering their so-
called enemies. The Exarch just allowed the Steiners to do something they’ve been
trying to do since The Republic was formed. But he’s been in bed with them for
years. He just needed the right time to spring his trick. :- Hippee
+ Oh, boy, not again… Next thing you know, FM is going to go off on some sort of
uber-conspiracy between ComStar, the Steiners and Clan Wolverine. Pretty soon, a
dozen regiments of black ’Mechs piloted by genetically enhanced ants will drop on
Terra and declare it their queen-hive-home. :- Goobs86
+ So, if we assume CMike is right about the trickle thing and that Hippee is insane,
there’s still the thing about the Lyran bankers. They’ve been trying to get into The
Republic for years. Decades, really. And this agreement opened the door for them.
Hippee is right about that (but that only!). So we’ve got an almost immediate deficit
direct to the Lyran coffers that we’ve gotta make back up. That’s the hard part of it
all. :- Kemo
+ Well, who knows, this could turn out to be a good move. It may well open up some
new avenues into the Commonwealth. And maybe Bannson can slap them around a bit
on their own turf… nothing wrong with that, if you ask me. We know they’re going
to try to take advantage of this, and if we do, Redburn sure does. And if he knows,
then he’s got a plan. And if he’s got a plan, then my worries are pretty much gone. :-
Pooky
| August 11, 3133 |