NationStates Jolt Archive


Commonwealth of Tolvan to Raise Tariffs (Open, MT, ATTN: NU in particular)

Tolvan
18-07-2008, 04:42
Commonwealth Press

www.commonwealthpress.tol

BRAYTON- Parliament passed the controversial Grant-Morgan Act by a vote of 601 - 397 with 2 MPs absent. The Act, which was backed by both Prime Minister Hutchins and Commerce Minister Burke, raises tariffs on exports from "Tier Three Markets". Tier Three markets are nations whose prevailing wages, working conditions, and enviromental laws give employers there an inherent advantage over Tolvanic competitors. The Act boosts tariffs on such nations by 1.05% to an average of 10.25%. Nations with existing trade agreements with Tolvan will not affected by the Act.

The Act had faced widespread opposition from the Libertarian Party and many members of the PM's own Conservative Party but the endorsements of Minister Burke and influential University of Brayton economics professor Thomas Stewart effectively quashed much of the opposition.

The new tariffs are expected to add 27 billion Pounds to the Commonwealth's coffers for the rest of remainder of the fiscal year. Of this windfall T$5 billion is to be earmarked for investment into renewable energy programs and another T$5 billion will be made used for foreign aid. These funds were set aside in order to secure the support of Progressive Party MPs who had sought even higher tariffs aimed at nations that produce large amounts of greenhouse gases. The Act in its final form was a compromise that enjoyed widespread multipartisan support, with the exception of the Libertarian Party which opposed the Act en masse.

In response the COMEX Craig-Chang Index closed up 105 points as investors expect the tariffs, which take effect July 25th, to boost revenues at Tolvanic based manufacturers who have been suffering as of late due to cheaper foreign imports.

A complete voting record for the Act can be found at: www.commonwealthpress.tol/grant-morganrollcall

OOC: You may respond however you please, if you wish to be a nation affected by the tariffs, feel free to RP as such.