Kalistan

[Doc]

Kalistan expands trade with Xsampa
More diamonds, and lumber, jewelry and precision tools, cars for aluminum
Port Elga, Sulari, Duchy of Suldanor
March 15, 5662


A cargo ship carrying tons of both raw and machined lumber from Xsampa arrives in Sulari

The expanded trade deal with the Dovani state of Xsampa has begun providing new materials for Kalistan's building, industrial and luxuries sector, with follow on trade to introduce Xsampan luxury vehicles into the Kalistan market. The deal involves cash purchases and direct trade of aluminum for limited quantities of diamonds, both industrial and ornamental, several shipments of lumber to help relieve the pressure on the already heavily regulated Kalistani lumber industry to help provide new building materials for housing, some precision tools, and higher valued fine jewelry. The initial transfers will later include a limited number of Xsampan Cars to Kalistan, opening a new market for the Dovani car maker.

"Kalistani consumers will benefit from expanded trade with Xsampa," said Trade Minister Melanie Boone. "We seriously need to build more homes in Sulari and Kaliburg, and our lumber market is one of the most restricted markets in Northern Seleya, due to environmental concerns and the need to protect Kalistan's forests. Meanwhile we have a glut of aluminum capacity, and can supply Xsampa with a LOT of aluminum for various applications, including their own housing industry, and automobiles and aircraft parts if they like."

Most of the direct cash payments will come once again from House Ananto, who counts Xsampa as its main source for gem quality diamonds. "The Xsampans have a long and certified history of ethical diamond production," said Minister Boone, "and knowing House Ananto, it is likely that there is a limitless market for these stones from the Imperial Family. As long as Xsampa is selling at world market prices, the Empress is buying." Boone said House Ananto is currently looking for a source for emeralds, rubies and sapphires as well. "Unfortunately, for us, there are not a lot of suppliers for these stones: It seems that Kalistan has a significant portion of the world's precious stones stored in Her Imperial Majesty's gem vault and our previous sources have eiher dried up, stopped producing, or don't like Kalistan."

More than gem quality diamonds, Xsampa is also a major supplier of industrial grade diamonds, specifically for cutting, grinding, and drilling applications. "Kalistan is a major purchaser of industrial grade diamond crystals," said Boone. "Our heavy industry relies on the steady supply from Xsampa, and like the more gem quality stones, Kalistan is always in the market for industrial grade diamond cutting tools."

But new items added to the trade deal, the luxury items like fine jewelry and eventually automobiles, are being handled by private sector importers in Kalistan looking to profit. "The deal provides a standard of exchange for these sorts of luxury items," said Boone, "but in fact, its more of a deal to aim to keep prices for the Kalistani consumer market down by keeping costs to Kalistani Importers down. Xsampa will not be exporting bulk fine jewelry: that would be ridiculous. But the deal smooths the way for individual wholesalers to travel to Xsampa, buy lots at a time, and bring them back to Kalistan to sell to retailers in Kalistan. With Cars it will be the same way. I can't imagine we will import more than 50,000 automobiles from Xsampa a year. But these will be marketed in the Empire as luxury vehicles, so they are not competing with MoCo or MV. Kalistanis like new and foreign things, and for those who can afford the premium, we don't doubt that Xsampan EVs will make a splash."

The first shipments have begun arriving by ship to Sulari. "We were initially concerned that the war in Rildanor would interrupt shipping," said Minister Boone, "but we are not a party to that conflict, and the Egelian Navy seems to have things pretty well under control in and around Rildanor. Plus, the shipments can skirt the Dovani Coast north of Temania, skipping the conflict zone all together. Our first shipments encountered no problems arriving at Port Elga."

The deal is expected to be worth something on the order of ₭65 million Imperial over the next 5 years.

@TheRepublic