FICT General Assembly of May 3, 2014
On May 3, 2014, the fourth regular summit of the General Assembly of the Forum for International Cooperation and Trade (FICT) was held in Port de Boiguehenneuc, Île de Romanhe.
- 1) Opening and welcome.
- 2) Approval of the agenda.
- 3) The reduction of the contribution and the allocation of the budget.
(-In this matter there are two proposals: the Kaupelanese proposal and the Adzhatian).
- 4) Review of the free trade agreement - Remove the exception for raw materials
- 5) FICT primary schools for the less developed countries.
- 6) Admission of New Courland (if it applies for FICT).
- 7) Any other business.
- 8) Scheduling of the next General Assembly.
- 9) Closing of the meeting.
- Adzhatia: prime minister Eigĕń Hameen and foreign minister Demitrieź Fŭĺgan
- Guelphia: prime minister Matthew Jones and foreign minister Colin Perrott
- Île de Romanhe: president Aristide Faroz-Zaran and prime-minister Guillaume Keztil-Surt
- Kaupelan: prime minister Sindi Wisnumatan, foreign minister Elisbet Yemsawa and finance minister Charles Li
- Tarmorya: president Abdelkarim Darmqran and foreign minister Didier Basqri
- Voskia: prime minister Luçia Apavia and foreign minister Hasan Aliçka
- Yukland: prime minister Rœslin Óstfjœrd and foreign minister Gabrjæl Kristjanssœn
- Yutyrama: president Francisco Matos Oiampi and foreign minister Jerônimo Ramalho
Reduction of the contribution
As a funding organisation, FESD loans money to the member states/governments at low interest rates to sponsor projects. Since these funds are paid back through the years, FESD capital does not decrease. In fact, it increases continually with the yearly FICT contributions. With the 2014 budget and the previous contributions, the accumulated capital of FESD will be close to 300 million US dollars, an amount considered reasonable for the purposes of the organisation. Concerning the point of reduction of the contribution and the allocation of the budget, two proposals are presented.
The Kaupelanese proposal is to reduce the budget with 50% and to allocate the same amount as previously allocated to the administrative expenses but less to the Financing Fund. The Fund will therefore continue to increase, but at a lower rate. With the proposed contribution (0.05%), the budget would be 115 million US dollars. The proposed distribution would be:
- Administrative expenses: 46 million (40% of total).
- FESD: 69 million (60% of total) for the emergency Fund (18 million US dollar) and 51 million US dollar to be added to the capital of the financing fund.
The Adzhatian proposal for the funding of FESD is a more flexible system with a fixed maximum annual amount of money reserved to FESD that is to be reviewed after five years. In this system, only the amount that has been spent by FESD will have to be replenished by the member states, so FESD won't receive a fixed amount of money each year 'no matter what', but only the difference between the amount that FESD hasn't spent at the end of a year and the maximum amount that was determined by the General Assembly. If, after five years, it turns out that this amount is too high or too low, it can be altered. As FESD gets back loaned money (which therefore doesn't have to be replenished by the member states), this may be a much cheaper option for the member states.
Decision: Four memberstates (Adzhatia, Île de Romanhe, Tarmorya, Yutyrama) vote in favour of the Adzhatian proposal, two (Guelphia, Kaupelan) in favour of the Kaupelanese proposal, one (Yukland) is against both proposals, and one (Voska) abstaines from voting. The Adzhatian proposal is accepted.
Review of the free-trade agreement
This point concerns the proposal from Yutyrama to remove from the trade agreement the exception for raw materials and agricultural products. For Yutyrama the export of these products is important and the country wants to export to other memberstates of FICT.
In this matter, Voskia asks for an exception from this to protect its economy from cheaper Tarmoryan agricultural import.
Decision: Seven of the member states (Yukland abstains) vote for a review of the free-trade agreement with the possibility of opt-outs. The reviewed trade agreement will be presented to the GA in 2015. If approved then, the new free-trade agreement will enter into force as soon as all member states have ratified the agreement.
FICT primary schools for the less developed countries
This proposal was withdrawn by Yukland, who originally introduced it.
Admission of New Courland
The minister of foreign affairs of New Courland, Mr. Andrejs Berķis, is present on the meeting as an observer. A formal membership application, if any, will be done before the next regular GA in 2015.
Any other business
FICT fairs. Any memberstate can organise a FICT fair about any subject that is of interest for the other member states, and at any time. Guelphia will look at organising a fair later this year, probably with an invitation for states to showcase their agricultural and industrial goods.
Scheduling of the next General Assembly
The next regular General Assembly will be held in 2015 in the Town Hall Building in Kingsbury, Guelphia. Concerning the date, the GA decides that the annual meeting could be held every first Saturday in May (with the exception for May 1st, as that is a holiday in many countries).