Power & Revolution | Free Trade Agreements Tutorial

[Music] what is up guys politics gaming here and today we are going to finally be looking into free trade agreements go ahead and leave a like subscribe to the channel if you are new and hit the bell notification icon for new tutorials i am planning on in the future all of this is exclusive to the 2021 edition otherwise we're gonna go ahead and get into it and i'm gonna go ahead and teach you guys a couple of things about free trade about free trade agreements how they can be used and more a free trade agreement is an agreement between nations to form a free trade area which can be bilateral between two countries or multilateral between multiple countries free trade is a policy which does not restrict imports or exports it also promotes the idea of a free market this also means that trade restrictions will be loosened between the countries mainly this means tariffs or it also means that business between the two countries and economic cooperation will be improved under the clauses of this agreement depending on which one that you sign trade and power and revolution works under the table and then at the forefront of your administration basically trade happens regardless of whether contracts be it free trade or economic are signed the difference with an economic contract is that you can sign prices above or below market price which can affect the sector's profits and sales economic contracts are also specifically for that sector instead of a free trade agreement which kind of goes over a variety of sectors in geopolitical simulator a free trade agreement is available as one of three options a reciprocal commercial contract an economic treaty or a political economic agreement between the partner country before we discuss each of these we should also discuss custom duties and how they work in the 2021 edition customs duties are now allowed to be negative or positive essentially reducing customs to negative means that the country is lowering tariffs on all countries or a specific country and then raising these beyond zero percent means yours making it more expensive for other countries or a specific country to export to your country in free trade agreements these are automatically lowered depending on the agreement this will be discussed further soon it is also important to note that there are custom duties every time that you send a product into a country and this uh feature is meant to eliminate those so if you actually look at your revenue tab you will see that you're making a you know a couple billion dollars depending on what your country is off of custom duties essentially what this is that is the amount of money that you are making from the import of product regardless of whether you have tariffs on it or not whether you've increased or lowered tariffs on it so essentially you know all these countries are paying you so and so amount to send one product into your country but then it's multiplied by you know the billions of dollars depending on the size of your economy going on a reciprocal commercial contract is much like a trade contract but extends to the largest sectors in both economies to find out what these are go to finance and refer to the bar graph on the bottom right this is main production which shows the economic sectors that drive your economy it also serves as a way to find out what you should export first if needed for example as brazil chemicals fuel fertility vehicles commercial oil building housing and roadway automobiles hydraulic electricity iron steel and sugar all serve as the sectors that have the most effect on the economy at this moment going on the rcc is limited to a portion of these dominant sectors free trade agreements in accordance with being free is also automatically lowering tariffs between your nation and the target country with the rcc tariffs are reduced by 50 automatically as soon as signed the terms of this agreement also go on to say with control of goods at the border these restrictions are reduced which means products from either country aren't as controlled as they are under no agreement and then finally there are no regulations under the rcc but there will be under the next two ftas and finally the requirements for a commercial agreement is none but relations with the target country must be neutral or trade relations should be zero or more depending on if you have god inspire or not and then if i am wrong there go ahead and correct me down in the comments below the next section will discuss a global economic treaty a global economic treaty is the second highest type of agreement and is preferable for any type of country you have good relations with as well if it makes sense for you to sign this agreement with that country for example as united states signing agreements with the country to counter another country economically like china or russia is recommendable global econ treaties are best used to bring others closer to your sphere of influence and this is the best way to do it and it is a very good tool in geopolitical terms clauses of the agreement include the following it affects any sector with a quota on certain products considered strategic by the partner this includes energy sectors infrastructure sectors farming and natural resources border control measures on products from either country are very light so there are less customs factors and profits toward this country custom duties are reduced by 80 in this global economic treaty regulations are now a factor in this treaty with compliance of security and health regulations imposed by the partner for incoming product this essentially means that your food safety funding needs to be adequate in funding meaning that it needs to be more than 5 stars next is access to the members public market which essentially means that any sector can be accessed in this agreement lastly the recognition of country of origin label means that any product that comes in or goes out of your country under this agreement is recognized by the partner this is to prevent products from say argentina slipping into the brazilian market and then into the american market to avoid custom duties qualifications to enter this agreement are as follows increased funding for food safety or increasing funding for organic farming according to everson the agreement will be denied if the percentage of organic farming is less than 1.5 or star funding for food safety is less than 5 stars so to get the 1.5 organic farming increasing your stars to 5 or more will do the trick in less than a few months finally the big kahuna herself the economic and political agreement packed this is my favorite one these are the most difficult to get into as they are very specific and require your country to abide by certain environmental and social protocols to enter them as well as to stay within this agreement epas affect all sectors regardless of quota systems so the entire economy can be affected by this this includes services as well as other industrial sectors tariffs are completely eliminated and then border control is almost non-existent regulations are the same as a global economic contract country of origin labels are verified by the partner countries which completely prevents customs avoidance compliance with environmental impact standards are strict which will be discussed shortly observance of human rights and working conditions are also strict which means workers must be paid a reasonable minimum wage and gdp per capita must be a certain amount we will discuss this again very shortly intellectual property protection is observed under this agreement for copyrights brands and patents and fiscal harmonization is also observed and social dumping is opposed under this type of agreement requirements for this agreement are as follows organic farming must be 1.5 percent or food safety must be more than five stars funding but i recommend doing both the dictatorship level of the country must be less than 18 which you can view in guidance by here so essentially you need to be a free country in order to have this type of agreement renewable energy must be more than 15 of the country's energy production and co2 emissions per capita must be less than 10 tons per resident which you can find here it is important to note that for renewable energy nuclear power is not considered renewable in-game although nuclear is zero emissions and will assist in lowering co2 emissions it carries the risk of a meltdown therefore pumping out nuclear plants will not be considered whenever getting to 15 renewable energy all other energy parks such as biomass hydro solar wind and geothermal are all considered renewable in this case if your country dips below this 15 requirement well inside of this agreement the agreement will be dissolved and the agreement will have to be renegotiated again free trade agreements all of them take about one week to be negotiated as this is the negotiation process in order to find out whether the countries that are involved in the free trade agreement do abide by the standards of whatever agreement is being signed in terms of workers rights the gdp per capita must be 8 000 euros or more than nine thousand three hundred dollars it is also required that your minimum wage in the country be at least three hundred euros or three hundred and fifty dollars note that and minimum wage in-game is a monthly wage not an hourly wage this is to fight social dumping which is when companies hire workers for a cheaper wage or none at all lastly the corporate tax must be 20 or more this is the balance fiscal harmonization which essentially means to prevent a tax haven for companies under this agreement for example if you have a zero percent corporate tax and another country has a 35 percent company tax companies from that country can relocate to yours to avoid taxes this agreement prevents that and pursues a common tax policy to prevent this practice from occurring in the next section we will discuss economic organizations economic organizations are free trade areas that encompass multiple countries this essentially works as a free trade agreement but multilateral an example of this is the trans-pacific partnership which is an organization which the united states left in the early days of the trump administration essentially these organizations can allow you to form trade blocs to counter specific countries like china to serve geopolitical goals the biggest thing about free trade agreements in theory is that they are the greatest tool that we have been given in power and revolution to advance into the international arena and actually start courting people economically in the game multilateral agreements are formed in new organizations found here examples of multilateral agreements are mercosur the trans-pacific partnership and the united states mexico canada agreement or usmca which seceded the nafta agreement the final section of this will discuss the calculation of gdp what fta is best and what my final thoughts are according to everson the game calculates gdp boosters or multipliers which depends on the organization the player belongs to first the level of tax harmonization of those organizations and the amount of free trade agreements that have already been signed to quote eversom roughly speaking the boosters depend on the economic power of the signatories a reciprocal contract has a booster of one while a global economic treaty has a booster of two and an economic and political agreement has a booster of three essentially signing agreements with economies the size of yours or larger is recommended some countries will refuse this free trade agreement if their economy is extremely small compared to yours so who should you sign a free trade agreement with this is a question some of you guys may ask and i'll try to suggest which one is best for you this depends on who you play as if you're a small country signing a contract with a larger country near you or one of the bigger ones like china or america is recommended now as for which contract this again depends on the goals over your foreign policy if you're say america focusing on asia is a good way to counter china's growing influence in the region but you can also use it to lower trade restrictions for products you need such as bauxite or other raw materials for your economy like indonesia or taiwan or japan reciprocal contracts are best used for smaller deals such as nations with raw materials global treaties are best used if you want access to that nation's market such as raw materials energy or finished products like automobiles economic and political agreements are best used for nations you have great relations with and if you want closer ties to them these provide the best type of gdp boost but should be used very seldomly depending on your geopolitical ambitions don't sign these with your enemies even if they would accept them in the first place my thoughts on it free trade agreements are a great way to expand your geopolitical influence they also serve as a way to allow other nations access to your market at the benefit of economic growth however signing too many of these agreements will increase your economic growth rate over the duration of the agreement this means that the player must account for this excess growth and fight it before inflation gets the better of your economy increased company taxes employee employer social security payments and industrial pollution taxes as well as carbon taxes and other types of taxes are best used to fight this and increase in inflation in your country but if you don't want to sign a free trade agreement or become protectionist by raising tariffs at the risk of getting kicked out of the wto is what is recommended for you but you need to note that raising tariffs on products can lead to you being removed from the world trade organization but instead of the previous seven percent across the entire economy this has actually been changed to three percent over every sector so if you increase it on if you have it like three percent across all of your sectors and then increase one of them to four percent that will get you removed from the wto it will get you a warning or it will just flat out get you removed depending on what else you've done with your economy otherwise just leave the wto and raise tariffs as much as you want if you don't want to deal with this [Music] ah [Music] but this does allow others to tariff you as well free trade agreements do however prove useful in the event that this happens by accident as they prevent your partner country or any target country from tariffing you at all because automatically in these agreements tariffs are removed uh like 50 80 and then completely under an economic political agreement and that's gonna be it for today so go ahead and check out my economic tutorial listed here and don't forget to subscribe to the channel like this video and comment your thoughts on this video down below if you have any ideas for tutorials just make a comment down below and i will look into it for you and give you my thoughts or i'll make a video on it if it requires it otherwise it was a pleasure making this video thank you so much and i will see you guys in the next one [Music]

Channel: PoliticsGaming

Views: 446

Rating: 5 out of 5

Keywords: politicsgaming, geopolitical simulator 4, geopolitics, geopolitical simulator, power and revolution, P&R Tutorial, P&R Tutorial 2019, Power and revolution tutorial, power and revolution military tutorial, political game, political game tutorial, power & revolution military and foreign policy tutorial, power and revolution secret services, gps4 secret services, gps 4 spies, gps 4 gameplay, gps 4 politicsgaming

Id: DAimDCthIAg

Length: 16min 10sec (970 seconds)

Published: Thu Sep 30 2021