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Sino-Fillipino Summit


Triyun

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Taibei's foreign ministry had been setup to receive a delegation from the Philippines Islands. Chairman X would be attending the proceedings as the primary representative. The island had come a long way since he was stationed there. He would look forward to meeting its new rulers. He stood in front of the building in a the formal issue olive green military garbs of the Neo Whampao Brotherhood flanked by the Vice Foreign Minister to represent the Civilian Government.

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Antonio Pilar, First Director of the Economic Division, greeted the representatives warmly upon his arrival. "I'm honored to be here, and we have much to discuss. I believe there's much our two nations can do for each other."

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[quote name='iKrolm' date='27 April 2010 - 04:01 AM' timestamp='1272337277' post='2276822']
Antonio Pilar, First Director of the Economic Division, greeted the representatives warmly upon his arrival. "I'm honored to be here, and we have much to discuss. I believe there's much our two nations can do for each other."
[/quote]

Indeed. We would like to discuss a general agreement on trade, maritime borders, and non-aggression. We believe that these three issues can set the stage for fruitful relations in the future and closer cooperation.

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"I couldn't agree more. The obvious first steps would seem to be the elimination of tariffs and entering into a free trade agreement. The industries of Selenarctos are always looking for new markets to expand into, and I'm sure you'll find Selenarctan metals and electronics provide close to, perhaps even [i]the[/i] best value in the world.

"As you may already know, Selenarctan waters are already open to civilian and military vessels from any recognized nation. (OOC: Water policies and borders are in my factbook.) I can, however, offer you reduced port fees in exchange for a reduced taxation should any Selenarctan corporations wish to establish a branch within the United States of China. Finally, of course, with such an agreement in place non-agression would only make sense."

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"We would favor a decrease in tariffs first on goods such as metals. At the moment, our producers have sufficient industrial capacity to produce things such as this. We would like gradual reductions for things such as electronics as we are still a developing country. We propose on complex production goods like semi conductors and automobiles that your companies be allowed to take advantage of our cheap labor markets through joint ventures with Chinese companies. These actions will help China modernize and allow your corporations to get maximum benefit. Over time as we develop tariffs will go down and you will have not only Chinese labor but also Chinese consumers to trade with.

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"While your offer is quite generous, I can't guarantee what the industry leaders will do. The current manufacturing trend in Selenarctos tends to be towards highly-mechanized assembly lines requiring minimal, well-trained employees. As such, I'm not sure of how much benefit transferring operations to unskilled-labor assembly lines would be, however there is something else we believe could be mutually productive. As an island nation, albeit a rather large island nation, we are in constant search of low-cost, high quantity supplies of raw materials, especially various semi-precious, precious and rare-earth metals. Some of these require a reasonably labor-intensive process to refine and many are not present in useful quantities within the Philippine Islands. Given the proximity of our two nations, your resource reserves and the cheap labor available within China, I believe significant capital could be moved your way to help you mine these reserves; the companies responsible for mining could even be China-based and chinese owned."

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This would be acceptable. However we are well aware of the so called, resource curse. We would like to then have the ability to keep some of our tariffs on some infant industries. Opening ourselves up to foreign competition completely without a willingness to outsource labor towards China could result in our manufacturing taking a significant hit before it gets off the ground.

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"If you feel this is necessary, I'm sure an agreement can be reached. If you could elaborate upon the areas you feel are especially vulnerable, instead of removing all tariffs in these areas perhaps we could agree upon a mutual reduction of tariffs."

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"We propose reduction on agricultural, aquaculture, raw minerals, and services are all areas where we can reduce tariffs. Manufacturing is our primary area of concern. We would like to propose a scaled draw down of tariffs there starting with basic consumer electronic goods such as radios, children's toys, relatively low technology manufacturing, we expect that a few years after that we will be prepared to scale back tariffs on heavy industry and vehicle manufacturing, by the end of the decades we can probably remove most tariffs in this area and be able to compete."

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The following pact was offered up.






[quote]Sino Fillipino Friendship Treaty

Article I. Non-Aggression

Neither power shall engage in armed conflict with the other. Both countries agree to respect the sovereign territory of one another.

Article II. General Agreement on Trade and Tariffs

Both Countries shall remove tariffs on agricultural, aquacultural, raw materials, and services effective next fiscal year. Both countries shall gradually reduce trade barriers on manufacturing. Within one fiscal year, radio, and low complex consumer goods shall have tariffs removed. Within four fiscal years automobile and heavy industry tariffs shall be removed. Within ten fiscal years tariffs on high tech manufacturering goods shall be removed.

Article III. Termination

This pact may be terminated with 90 days (7 IRL Days) notice.[/quote]

Edited by Triyun
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