Kalistani Major History

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Kaliburg Welcomes news of Lodamese Ratification of AESA
Trade Union potentially represents largest bloc of this kind in Terra
Kaliburg, Ananto
February 28, 5367


AESA has become a defacto trade union for the Northern Anantonese

The agreement which led to integration of the economies and the abolition of borders between Kalistan and Lourenne has been extended to Lodamun, making the Anantonese Economic Standardization Act one of the, if not the largest trade union in Terra. The provisions now cover nearly 300 million people, and include one of Terra's largest economies, and two middle economies. Provisions of the act allow for free flow of goods, services, and capital between the three states, and the only economic activity excluded is monetary policy.

"The idea for integration came because Kalistan had long held a particularly favorable opinion of Lourenne," said Kalistan's Finance Minister Janine St. James. "The treaty was built to get rid of any remaining barriers to Lourenne's investment in Kalistan which are imposed even on nations we maintain free trade agreements with. In doing so, Lourenne became free to invest in Kalistan, and the Republic has benefitted ever since. Meanwhile, not creating a monetary union also helps each country stay independent enough that we can pursue different political economies and separate growth strategies without hindering capital flows between our two countries. The ZPG position of Kalistan doesn't prevent Lourenne from building new things in Kalistan, and Lourenne's liberal to social democratic orientation is strengthened by inflows of Kalistani capital who would prefer to do buisiness in the less restrictive environments that Lourenne offers. Adding Lodamun into the mix will just increase opportunity and diversity so companies can act in a way that best suits their business model and growth strategies."

A new partner in the trade union creates new opportunities but also new challenges for the centuries old partnership. Lodamun has committed to reviving its moribund economy, and has taken steps to secure important deals from both Kalistan and Lourenne, but at the moment, integration is slow, and both Kaliburg and Eroncourt will likely want to make sure that Lodamun is stable before full integration is achieved. "Kalistan will feel the effects of any changes first," said St. James. "We share a border, and Lodamun is our second largest trading partner, after obviously Lourenne. We have a number of important infrastructure connections, and while we look for more opportunities to invest, downturns in Lodamun, which has a more positive orientation toward capitalism than Kalistan does have to be insulated against. Kalistan already absorbs population pressure from Lodamun in the form of open borders, and given the long history of neglect in the Lodamese economy, there is not a lot of precedent that can help Kalistan plan for dramatic shifts in Lodamun. But we think they are very conservative in their approach to reform, and that is a good thing, especially from Kalistan's perspective. If Lodamun can keep that pace, slowly, deliberately, and responsibly reviving various aspects of their economy, I believe all three nations stand to benefit."

The news of Lodamun's ratification of the AESA and Lourenne's enthusiasm comes on the heels of Kalistan's announcement that the MoCo Plant in Addisjah is well ahead of schedule and is expected to be completed by year's end, with new products destined for Lodamun headed out by the second quarter of next year. Kalistani engineers are once again eyeing increased rail transportation across the Jah River and making the argument that the double track will provide excellent benefits, increased cargo turnaround time, and with the access of Lodamun into AESA, no more requirements about loading separate trains to transit the border. "The increase in efficiency and decrease in handing costs alone will pay for the bridge when it is finally completed," said St. James. "Lodamun is encouraged to complete thir half of it and link the double track cargo line into their rail network, a process which was started when we were talking about a northern Seleyan Rail Network almost 50 years ago."