NationStates Jolt Archive

To all UN delegates,

I strongly encourage you to review the following proposal, which was submitted on Tuesday 11 at 11 am, PST. I ask for your support in approving this proposal so that it may be brought to a general vote by all UN members.

Thank you very much.

The Commonwealth of Windleheim



Banning of Subsidies
A resolution to reduce barriers to free trade and commerce.


Category: Free Trade
Strength: Significant
Proposed by: Windleheim

Description: WHEREAS it is recognized that when there are no barriers to trade between nations, market forces will work to encourage nations to specialize in what they are best at producing, and

WHEREAS when nations specialize in the production of one or a few goods and/or services there will be more economic efficiency than when each individual nation tries to produce as much as it can of everything it has the ability to produce, and

WHEREAS the efficiency brought about by a network of specialized, free-trading nations will stimulate the economies of all participating nations and benefit the citizens of the afore-mentioned nations, and

WHEREAS even when tariffs are removed, free and unfettered trade cannot exist when nations support domestic businesses with subsidies,

Subsidies being DEFINED AS any financial benefit given by a nation's government to domestic businesses that allows domestic businesses to drop their prices below foreign competitors' prices against the dictation of natural market forces; and thus a barrier to free trade,

All members of the United Nations will agree to ban all subsidies within their countries, except where enumerated in past or future United Nations resolutions, in the interest of increased freedom of trade between nations.

um... no.

What he ^ said.

Um...no.

except where enumerated in past or future United Nations resolutions

I don't think you can second guess Future UN Resolutions...

Banning of Subsidies

I think a proposal limiting subsidies in the interest of free trade among member nations might get enough support. But I'm opposed to the outright banning of them in all UN nations.

By doing what you suggest, countries will each specilise in what they make best because of comparitive advantage caused by the difference in opportunity cost ratios. This will increase the total output of the UN drasticly. One problem with this is that if each country made only one thing (which would eventualy happen depending on the number of countrys) which would cause huge competition problems and destroy the whole economies of some countries. Becaues of this I think it it a bad idea to ban subsidies.

Doesn't this wipe out all power for the Support Hemp resolution and make it effectively unable to be used?

Up with fair trade

Free Trade :mp5: :headbang: :headbang:

Fair Trade :)

Subsidies in developing countries are essential. The author clearly hasn't thought the issue through.

Mathieu Vergniaud
Deputy Speaker to the UN

Up with fair trade

Free Trade :mp5: :headbang: :headbang:

Fair Trade :)

Thanks for that...eloquent...post

Doesn't this wipe out all power for the Support Hemp resolution and make it effectively unable to be used?
DemonLordEnigma is correct, of course. Even though Squirrelmania voted against "Support Hemp Production" BECAUSE it included a subsidy plan, this "hidden repeal" presents a problem for us.

We're not in favor of a blanket ban on subsidies, either. For example, Squirrelmania is part of a regional electricity grid, and we offer tax subsidies to domestic electricity generators using nonpolluting methods of generation. Our primary goal is to reduce pollution. However, under this resolution, the fact that a coal-fired generating plant in neighboring Beboland lost sales because the tax break enabled a Squirrelmania geothermal plant to undercut it on price per megawatt means that the tax break would have to go.

No, thanks. Squirrelmania supports the goal of "free trade, not fair trade," but the resolution would have to be more narrowly tailored to garner its support.

I agree. This proposal doesn't take into account that subsidies have a wide range of uses, and are not just used as a means of competing with foreign imports.

Subsidies are a key part of every nations economic policies. If there are no subsdies many economies will go under, and many farmers will loose their jobs. Also when a government provides subsidies for its framers it allows them to turn around and sell the products for a cheaper price to other nations. This allows other nations that cant afford the high price of food to recieve it. For example the Unites States Government will buy corn from its farmers for $20 a buschel (not actual), and then they turn around and sell it to poor African nations for $5 per buschel. Even though the government looses money it keeps it farmers in business and helps feed those in need. Subsides are one of the most important economic tools, and nations must be allowd to use them.