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Orioni

European Commercial Alliance (ECA)

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Mission Statement: "Bringing nations closer together"

1. INTENTION

In an effort to bring the European nations closer together, the government of Orioni seeks to create a commercial alliance with other European nations. This alliance is to carry the name European Commercial Alliance (ECA). Within it shall be all nations who volunteer to be a member of this ECA. The main focus is commerce: the free movement of goods between the ECA countries. This means that all members agree to a equalization of tax, tariff and trade.

The ECA will be a commercial alliance but will NOT be a political instrument. It is not the objective of this alliance to influence of determine a country's government policy.

2. EXPLANATION

In economics, the theory of comparative advantage explains why it can be beneficial for two countries to trade, even though one of them may be able to produce every kind of item more cheaply than the other. What matters is not the absolute cost of production, but rather the ratio between how easily the two countries can produce different kinds of things.

Let me explain this with the following example:

Quote
Suppose there are two countries, Northland and Southland. Both have a wine-making industry and a clothing industry. In Northland, it takes a worker 3 days to make a suit of clothes, and 5 days to make a bottle of wine. Southland is more efficient in both industries – a Southlander can make a suit of clothes in 1 day or a bottle of wine in 1 day.

Southland has an "absolute advantage" in both industries – it is more productive at making both wine and clothes. However, it is 5 times more productive than Northland in wine making and only 3 times more productive than Northland in Clothes making. That is, it has a comparative advantage in wine making. While Northland is worse at making either kind of goods, it is least deficient at making clothes.

The price of goods must reflect the cost of making them, so it is likely that in Northland, a bottle of wine (takes 5 days work for a Northlander to make) costs more than a suit of clothes (takes only 3 days). As the Southlanders can make either wine or clothes at the same production cost, it is rational to export wine to Northland, and take the higher profit. Wine will be a better export than clothes for Southland as long as this is true, and it would be rational to deploy more resources into the wine industry at the expense of the clothes industry.

2

3. OBJECTIVES

As you may have learned from this example, the creation of such a ECA is beneficial to all nations who wish to join it. The objectives of this ECA will be:

  1. The basic principle of the ECA is peaceful cooperation. By working together, we will get to know each other and see one another as equals, not enemies.
  2. The ECA will be a commercial alliance but will NOT be a political instrument. It is not the objective of this alliance to influence of determine a country's government policy.
  3. Every member of the ECA shall agree to a equalization of tax, tariff and trade. (OOC: I won't get any more detailed on this issue, it won't get us anywhere since this is NS-RP.)
  4. Every member of ECA sets up a port that will be that nations port of entrance for all goods that are traded in the ECA. (OOC: Almost every nation that is on the map of Europa connects to the sea, except Empire Europa. If this nation wishes to join, it must create some sort of trade-airport.) Trade-cities at borders may also be created.
  5. Every member of the ECA that is on the map will be marked by the same color (or symbol, if color is impossible). (Example) (DISCUSSION PLEASE)

4. MEMBERS

All nations who will agree to this will be considered as founding members.

All nations who join afterwards must agree to the same objectives and must be admitted by the present ECA-members.

These are the founding members of the ECA (joined before 28th of october 2004):

  1. Orioni (2) (ports of entrance: Nordhaven, Zuidhaven, Andro, Meda, Eridanus, Corona Borealis)
  2. Sevrun (port of entrance: Gripps)
  3. Phil IV
  4. Byzantium Nova
  5. Great Kings
  6. Selene2u
  7. San Ba
  8. Mongol-Swedes
  9. Lesser Palestine
  10. ZiqXx
  11. Vanarambaion
  12. Millbrex

These are the other members of the E.C.A. (joined after the above date):

  1. Ironicus
  2. Tamurin (port of entrance: Hlondeth)
  3. Baltirow-woud
  4. Meteorola
  5. Koku
  6. Haken
  7. Tagmatium (port of entrance: Petrium)
  8. Akiiryu (port of entrance: Nithonac)
  9. Microglup (port of entrance: Glllup)
  10. Bhalman (port of entrance: Port Nian)
  11. Terre d' Ange (port of entrance: Markilikos)
  12. Pirilao
  13. Xheng
  14. Upper Strathyclyde
  15. Rekamgil
  16. Miiros

Map with all E.C.A. member nations:

user posted image

(Updated on 23 December 2005)

Government budget details concerning commerce: (list out of date!)

  1. Orioni (2): $580 482 878 976,00 (4)
  2. Sevrun: $280 698 089 459,55 (6)
  3. Phil IV: $258 333 904 857,60 (7)
  4. Byzantium Nova: <unavailable>
  5. Great Kings: <unavailable>
  6. Selene2u: <unavailable>
  7. San Ba: $554 493 189 322,80 (5)
  8. Mongol-Swedes: $25 079 386 624,29 (10)
  9. ZiqXx: $805 586 396 460,30 (2)
  10. Vanarambaion: $877 757 309 520,00 (1)
  11. Millbrex: <unavailable>
  12. Tamurin: $665 687 808 000,00 (3)
  13. Baltirow-woud: $132 733 549 462,50 (8)
  14. Meteorola: $42 170 429 466,00 (9)

5. PROSPECTS FOR THE FUTURE (DISCUSSION PLEASE)

  • The Euro could be Europa's favoured currency. It might be useful for the ECA if, after a matter of time, the Euro would be used as a common currency. If it were to be used by all member nations, it would greatly facilitate the interaction between member nations.
  • Balitrow-woud wants to organise a meeting for the proposal of a European Stock Exchange, which the House finds vital for the success of the ECA. (OOC: A thread will be started on this subject as soon as possible.)

ECA_4.gif

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His excellence is very interested in furthering trade in the region. He feels that our nation would benefit greatly from such an alliance, especially if it remains commerce only and does not attempt to interfere with local and regional politics. Also, we have no problem whatsoever using the Euro currency for intra alliance trade.

 

I, Jacob Taren, hereby request to join the ECA in the name of The Principality of Sevrun.

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Phil IV also wishes to join in the Commercial allience, we hope that we can increse trade between nations in the region, and between our close neighbours of Orioni, Vanarambain and ZigXx

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Sevrun, Phil IV and Byzantium Nova have been added to the memberlist. We are glad they chose to join the ECA. All other nations have received a private message concerning this issue. Hopefully this will increase the members of our alliance.

 

We regret to see SSSS does no wish to join us but we respect their choice.

 

 

DEADLINE

Any other member who wishes to be one of the founders should sign up in the course of two weeks since the start of this thread (oct 14th). After that, new members will still be accepted, but they will not be designated as founders.

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The Federation of Great Kings wants the join this economic organisation. U are free to use our canals for transport. Just dont interfere with our national policy.

 

Sincerely,

Arthur Pendragon

Member of the Great Kings

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That's great, Great Kings! wink.gif *haha* Good to have you aboard. You will be added to our memberlist asap. (OOC: I can't edit my first post so someone else will have to add Great Kings)

As you can see above, there are many benefits to this alliance, especially for your commerce. We're no political entity, just for trade. If you have anything you would like to export to other nations within the alliance, you can do this at an equal ratio. It's a win-win-situation.

 

With Great Kings as its fifth member, the European Commercial Alliance would look something like this:

Map removed by Orioni, moved to first post.

 

That looks pretty good I believe. Now wouldn't you want to join that!? Just drop me a line and I'll add you rightaway. Nothing more, nothing less. It's free and your nation will benefit. Only in NationStates could you work together so well. biggrin.gif

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The line has been dropped. The Emperor is terribly skeptical about the ECA and will join it, but reserves the option to bow out later, should things become bad for the roaring Vanarambaion economy. He will not, however, submit to a common currency, as this is an invasion of state sovereignty.

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He will not, however, submit to a common currency, as this is an invasion of state sovereignty.

Of course not, this is only a thought towards the future and it needs a lot more discussion.

 

So you're not joining right away or did I interpret that wrong?

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I, Queen Selene, have decided we will join this Alliance...Our main export will be Marijuana(and all things that can be made from that) Maybe President Pot will change his mind and join wink.gif (I'll make sure you never run out!!! tongue.gif )

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With the addition of the two latest members, Selene2u and San Ba, the European Commercial Alliance would look like this.

Map removed by Orioni, moved to first post.

 

There are a few nations we definately would like to include in our commercial alliance:

- Castillanos

- Millbrex and/or Huntsburg

- Iruseia and/or Suriyah

- Exiled Militants

- Morsetania

 

All other nations are still welcome and will still be considered founders untill the passing of the deadline (28th of october).

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These new nations have answered to our invitation:

- Mongol Swedes

- Lesser Palestine

They will be added to the list of founding nations.

 

In other news: the draft maps of the ECA members will be removed from all posts and inserted in the first post, to give a comprehensive overview.

 

@ European Commander: I'm sorry to have confused you. Did you know our own army is called TEA?

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Great to have you ZiqXx! laugh.gif

 

The map has been already been updated (see post #1).

 

The economic zone created by the E.C.A. at this very moment contains 4.597.000.000 citizens in 10 different nations.

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And so it will be. We welcome our great and proud neighbour Vanarambaion into the E.C.A.

 

The provisional map (see post #1) has also been updated.

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Millbrex, a bridge between the East and West.

 

Orion, Phil IV, Vanarambaion and ZiqXx.

Great Kings and Selene2u.

 

2 separate blocs. But not any longer. After consideration, Millbrex has decided to "bridge the gap".

 

We throw our hat into the ECA hoping that it meets the Objectives it has set, and surpasses the vision created by its founders.

 

Millbrex would like to take this opportunity to state that any rumours heard regarding planned disruption of the ECA are completly untrue. Never had it crossed our minds to put up huge barriers and charge a fortune for the passage of sea and land transport. smile.gif

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Millbrex has decided to "bridge the gap".
Great! We're really getting somewhere with this.

 

I also updated the map (again) so you can see the extent of the E.C.A. I know the map looks really ugly but it's just for show, not for play. Maybe later (after the deadline) I will work on a prettier version. With 'traderoutes' and that sort of thing.

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All nations please realise that the deadline for being a fouding member is tomorrow, 28th of october. All nations who choose to join the E.C.A. after that date will be considered members but not founders.

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The Holy Empire of Ironicus

Received: 6 hours ago Sorry for the late reponse but I have been out of town for acouple weeks now.

 

I have read over the proposal you sent me and have read over the charter for the alliance aswell and would be more than happy to join and look forward to building strong relationships with the other countires within the Alliance.

Ironicus will be added to the alliance, as a member. The map will also be updated rightaway.

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