Free Trade Died in the New World
Day 538, 18:39
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Published in USA 
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by
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by Jewitt
11 May, 2009 (Day 538 of the New World), this is an "open letter" submitted by our own Chief Editor, Jewitt. It does not express the views of The Report and it is not liable for any statements made in this article.
The eUSA has always been a supporter of equal trade among allies, but the allies of Atlantis have barely been so. Here is a quick little synopsis of our trade situation and what is wrong with it.
The United States of eAmerica
High Productivity regions: Grain, Oil, Wood
Average Import Tariff: 29.50%
Our tariffs allow us to import foreign goods without protection to our domestic producers. Our tax scheme has been designed to allow our domestic companies to compete, not be protected. This is how all nations should operate.
Unfortunately, we do not have this in-game. We are open to all imports of finished goods while our allies have shut us out. This is unacceptable.
The eUnited Kingdom
High Productivity regions: Grain
Average Import Tariff: 72%
The eUK lives off of imports of raw materials, but why do they overtax all of us when we allow in their heavily protected (some having 99% tariffs) manufactured goods for our lowly 20% or so? Unfair trade in my opinion. It seems they need us, their allies, since due to these war games and their having a trade embargo because of the Alliance/MPP structure has crippled their economic output.
Maybe they will lower their tariffs?
eSpain
High Productivity regions: Grain, Iron
Average Tariff: 81%
Okay, many people have had problems with this e-country. We import ~40% of our iron from eSpain. Our problems with this e-country began when they raised wood tariffs to 50% (and then, 99
Maybe we should block out their iron with a raise in tariffs?
eSweden
High Productivity regions: None
Average Tariff: 30%*
eSweden is a country with no high productivity regions and they have proven that by having a low tariff in their raw materials they can competitively create their own finished goods. But, their finished goods average 50% tariffs, but three are ten higher. Why have up to 60% tariffs when your ally across the Atlantis is allowing your goods to be sold for only 20%?
eCroatia
High Productivity regions: Grain
Average Tariff: 70%
With gifts, tickets,housing and grains having the utmost protection (99
Then again...last time I checked I saw about four Croatian weapons companies and a ticket company exporting to the eUnited States, undercutting our domestic companies and definitely making a wonderful profit. Why can we not do the same?
eRomania
High Productivity regions: Grain, Oil, Wood, Diamonds, Iron
Average Tariff: 95%
With all tariffs being 99% with exception to weapons (40
This is not a new story. A few months back, eRomania began to raise tariffs on finished goods to 99% and raised the tariffs on their raw materials (Iron and Grain were first).
I could had sworn I bought Q3 food from an eRomania...and I think my Q1 weapon was of eRomanian make. How many eRomanians can say they bought eAmerican goods?
What's up?
Our national government needs to take an active stance in fixing this. We have two options:
1. Demand that our allies lower their tariffs in the name of free trade amongst "friends"
2. Raise our own tariffs to match their own.
Does anyone else see something wrong with this picture? Why are we allowing our allies to come in and take our domestic GOLD when we cannot profitably export over in their own countries? One sided trade is a harm unto society, and in my opinion this is Atlantis abusing our membership and tariff scheme.
________________________________________ __________________________________
To do List:
Get ready, elections for Party President is beginning soon!
With the promise of bringing more forms, take this survey so we can regulate how the eAmerican populous feels about certain issues.
-Jewitt, Chief Editor
The eUSA has always been a supporter of equal trade among allies, but the allies of Atlantis have barely been so. Here is a quick little synopsis of our trade situation and what is wrong with it.
The United States of eAmerica
High Productivity regions: Grain, Oil, Wood
Average Import Tariff: 29.50%
Our tariffs allow us to import foreign goods without protection to our domestic producers. Our tax scheme has been designed to allow our domestic companies to compete, not be protected. This is how all nations should operate.
Unfortunately, we do not have this in-game. We are open to all imports of finished goods while our allies have shut us out. This is unacceptable.
The eUnited Kingdom
High Productivity regions: Grain
Average Import Tariff: 72%
The eUK lives off of imports of raw materials, but why do they overtax all of us when we allow in their heavily protected (some having 99% tariffs) manufactured goods for our lowly 20% or so? Unfair trade in my opinion. It seems they need us, their allies, since due to these war games and their having a trade embargo because of the Alliance/MPP structure has crippled their economic output.
Maybe they will lower their tariffs?
eSpain
High Productivity regions: Grain, Iron
Average Tariff: 81%
Okay, many people have had problems with this e-country. We import ~40% of our iron from eSpain. Our problems with this e-country began when they raised wood tariffs to 50% (and then, 99
😵for wood to product their medium production region. After huge inflation they lowered it. They continue to have 50%+ tariffs on all finished goods and their domestic raw materials.
Maybe we should block out their iron with a raise in tariffs?
eSweden
High Productivity regions: None
Average Tariff: 30%*
eSweden is a country with no high productivity regions and they have proven that by having a low tariff in their raw materials they can competitively create their own finished goods. But, their finished goods average 50% tariffs, but three are ten higher. Why have up to 60% tariffs when your ally across the Atlantis is allowing your goods to be sold for only 20%?
eCroatia
High Productivity regions: Grain
Average Tariff: 70%
With gifts, tickets,housing and grains having the utmost protection (99
😵and weapons not far behind (50
😵they have shut out most, if not all, of their allies. They have most of their raw materials open to import, similar to Sweden, but they seem to be trying to copy the model.
Then again...last time I checked I saw about four Croatian weapons companies and a ticket company exporting to the eUnited States, undercutting our domestic companies and definitely making a wonderful profit. Why can we not do the same?
eRomania
High Productivity regions: Grain, Oil, Wood, Diamonds, Iron
Average Tariff: 95%
With all tariffs being 99% with exception to weapons (40
😵and the defense system/hospital industries (1%, which is the same for all Atlantis nations), eRomania is the ultimate protectionist. After they gained all five high productivity regions, they set up a system to shut out all of their allies.
This is not a new story. A few months back, eRomania began to raise tariffs on finished goods to 99% and raised the tariffs on their raw materials (Iron and Grain were first).
I could had sworn I bought Q3 food from an eRomania...and I think my Q1 weapon was of eRomanian make. How many eRomanians can say they bought eAmerican goods?
What's up?
Our national government needs to take an active stance in fixing this. We have two options:
1. Demand that our allies lower their tariffs in the name of free trade amongst "friends"
2. Raise our own tariffs to match their own.
Does anyone else see something wrong with this picture? Why are we allowing our allies to come in and take our domestic GOLD when we cannot profitably export over in their own countries? One sided trade is a harm unto society, and in my opinion this is Atlantis abusing our membership and tariff scheme.
________________________________________ __________________________________
To do List:
Get ready, elections for Party President is beginning soon!
With the promise of bringing more forms, take this survey so we can regulate how the eAmerican populous feels about certain issues.
-Jewitt, Chief Editor
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Comments
First DENIED.
Second
Good to see The Report still printing.
Jewitt I think the real problem with this is simple. With the elimination of FTA's in V1, trade for large countries, i.e. countries that have competition for production at all quality levels of every product, has become an example of the prisoner's dilemma. There's no way to keep other countries from raising tariffs against you, so 90% you might as well raise your own as well, consumer surplus be damned. Oh well. Thailand will lead the world to a glorious period of free trade.
very interesting article. somethings not right here...
eRomania's tariffs are ridiculous.
I was JUST thinking about this an hour ago 😛
agreed voted
Down with tariffs!!!
Well you now know how we in Australia feel in real life. American Tariffs often exceed 100%. 52% of American farm income is via American subsidies. Entire ranges of products restricted for sale, just to protect America.
That's how America treats Australia.
@ australian warlord
remember one thing...this isn't real life...
Beerman: Exactly. This is a game, and we should work for a better eWorld, regardless of what our corrupt or business-minded politicians do in reality.
Apr 3, me to you: "'Free' markets are a two-way street. One-way 'free' markets are for chumps."
Welcome to the party, bro.
Agreed Jewitt. We can't be alone with tariff rates in our range.
Another convert to the church of the true light. May free trade be with you (yes, I know exactly how nerdy that sounded)
Free trade in this game is a fantasy. All of the top 3 countries have high tariffs, and so should we.
Many view eRep purely as a war game. Tariffs are a form of economic warfare short of embargo. Atlantis is a military alliance, not an economic alliance. The 'allies' use high tariffs for strategic advantage. It is really as simple as that.
100% agreed, I can't see myself voting for someone who won't fight for this. Raise the tariffs before they rape us.
Good points ssomo. We must raise our tariffs then!
Thank you Jewitt! I have already proposed higher import taxes in congress, but I do not have enough support to propose in game. People, lobby your congressmen/congresswomen. Get your views heard, and if they are not heard vote em out of office on the 25th.
First off, Australian Warlord, don't take real life squabbles onto the game. Second, America needs to raise our tariffs. Don't play the "why can't we all lower them?" because, quite frankly, no one will. They are playing us for chumps, and we're buying it hook, line, and sinker.
Jewitt: Well-researched and great work as usual.
I disagree that we should bring tariffs up to isolationist levels. I might be a little off on this but, the way I see it, the problem is that with the ATLANTIS countries they are already excluded from trade with PEACE, which means that these tariffs only hurt the allies.
Voted.
I agree with ssomo and Beat Boot. For as long as our allies have their tariffs this high, ours should be the same so that we're at least not hemorraging gold. If they should ever be so inclined as to discuss this matter and for everyone to lower tariffs, then so be it.
lol, what a noble idea. Free trade only works if everyone plays along.
Great article,
Voted and Subscribed.
Preach it brotha!!
I have been saying this for months. All these countries keep whining that we aren't helping them enough while they are making a bundle off of us and not allowing us fair access to their markets. The only way this will change is if we raise our import taxes to the same levels in land areas we have high regions in and on manufactured products. Then, maybe our "allies" will think about lowering their tarrifs.
Very well written article.
And I absolutely agree: If we're the only ones attempting to engage in free trade, it's not so much trade as exploitation. I understand each country's need to protect their own markets, but 70-99% tariffs are ridiculous. To be fair to our ATLANTIS allies, though, many (if not all) of the big players in PEACE all have the same protectionist mentality.
OMG my eyes are opened! This is an outrage! Thanks for bringing this to everyone's attention; I had noticed that it seemed as if our allies had really high tariffs, but until now I never had a good high level view of what was going on.
do we need to rely on there imports at all? Why not become self sufficient?
The big problem is that we cannot target our tariff rates for individual countries. This makes it far less practical to punish a particular country's trade policy or to negotiate tariff reductions.
Of course, that could lead to hub and spoke situations, where one country has lower tarrifs with two third parties than they have with each other. This allows them to exploit the situation by becoming a cheaper intermediary for for the godds. However, that would be an interesting game dynamic.
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By the way Australian Warlord, how do you think I feel about it as an American? Everytime a go shopping, I run into an invisible tax imposed by my government by pushing more cost efficient foreign goods out of the market. I'd love to buy Australian stuff if they can make it cheaper than we can. Adam Smith worked all that out more than 200 years ago.
The problem is intensity of interest. Producer benefits for protectionism is highly concentrated while consumer benefits of free trade are widely dispersed. That means that its much easier to rally people for tariffs and subsidies, than it is against them.
You always cioer your own peoples needs first. So in the smaller countries I dont so much have a problem with this, ub the bigger countries would benefit greatly from opening trade. Even Romania would benefit from increased numbers of finished goods though with their hold high regions in everything they can afford to stand alone. Yet another reason we should keep a close eye on Romania.
It's only free trade if the rich nations can keep their tariffs!
and the protectionism!!!
Totally agreed, Jewitt.
@ beat Root
hey will not rape us...yet.
OMG. I agree with Jewitt. Voted
Jewitt made an article, must vote.
FYI, Jewitt trade barriers are falling.
Among the nations of the former Atlantis most have a 1% import tax for almost all of their RM. This pool of free RM trade is a good start. The US and Spain have low RM on at leas some manufacturing goods.
Negotiations continue. Expect to see more import taxes fall.