Istalia

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Free Trade and Economic Cooperation Agreement Signed between Istalia and Dundorf

The long negotiations secure our country’s access to the raw materials its industry is hungry for

The signature of the bilateral agreement

August 5628

After long and intense negotiations, Istalia and Dundorf have officially signed an agreement on economic cooperation, free trade and on investment. The treaty, the result of years of negotiations aimed at defining in detail the best conditions for both nations, represents a significant step towards deeper and more advantageous economic cooperation.

To sign the agreement with the Federal Chancellor, the Minister of Foreign Affairs Anita Pierrini, the Minister of Industry, Trade and National Resources former Brigadier General Gianpiero Dalmasso and the Grand Prince of the Crown, the Regent Alessandro, flew to Dunburg, the capital of Dundorf. The latter, in his absence from the country, asked the Emperor to appoint Grand Prince Tommaso as Pro-Regent of the Empire, marking the first important official role entrusted to the son of the Regent, second in line of succession, a recent graduate of the Imperial Naval Academy of Neapulia where he also attended a degree course in Political Science and International Relations with historical orientation.

The agreement provides for the total elimination of duties on retail goods sold to consumers in the other country, thus promoting trade and accessibility to foreign products for citizens of both nations. As for goods sold in large quantities between companies or between companies and governments, a maximum tax ceiling of 3.5% has been set. This tariff, however, will progressively decrease as the overall value of trade between the two countries increases, until it reaches zero once a certain threshold has been exceeded. This mechanism aims to further encourage the growth of trade relations. An exception will be made for a series of materials and products included in a specific list that can be expanded through consultation with the other party, considered as strategic and on which no duty will be applied but which will be subject to specific procedures regarding the indication of the use and, above all, the purposes of common interest for the two countries.

In addition to the tariff aspects, the treaty introduces a framework for customs and excise cooperation to speed up customs clearance procedures and facilitate the movement of goods. Transit procedures will be simplified, the documentation required will be reduced and measures will be adopted to reduce bureaucratic barriers, in order to make trade between the two countries more fluid and dynamic.

Another pillar of the agreement concerns private investments. The treaty establishes guarantees for the fair and equitable treatment of investors, protection against unjustified expropriation, the free movement of capital and complete security measures for foreign investments, therefore commits the two countries to settle disputes before recognized international arbitration bodies. Furthermore, the two countries committed to actively promote mutual trade, through the exchange of economic information, market studies and support initiatives for companies interested in operating in their respective markets.

A particularly relevant topic in the negotiations was that of tax cooperation on which Istalia has cofussed carefully taking its time to reach a satisfatory agreement. Istalia insisted that the agreement include concrete measures to combat double taxation and, above all, to strengthen cooperation in the fight against tax evasion. This aspect aims to ensure a context of transparency and fairness for economic operators of both countries.

With the signing of this agreement, Istalia and Dundorf lay the foundations for a lasting economic collaboration, aiming to increase bilateral trade, facilitate investments and strengthen cooperation in strategic areas. The treaty represents a model of modern and dynamic economic cooperation, with expected benefits for companies, consumers and investors of both nations.