Technology is always at work to reduce transaction costs. The wheel allowed mankind to travel longer distances, as did the steamboat, railroad, and so on. Technology can reduce distances. The next technology is already here: atmospheric flight. Large special aircraft can fly high into the atmosphere, and "skip" along it, covering large distances in a fraction of the time. These type of aircraft have already been manufactured for various militaries. Their production is common, and they have become cheaper on average. This has allowed for their commercial use, and international trade through these aircraft is growing. Another new, and similar, technology is the Low-Earth Orbit (LEO) craft. These types of transports have become cheaper to launch over the years, and the technology is affordable — especially for larger nations.
One standing problem is that these aircraft are still relatively expensive, despite falling costs, and they are susceptible to disruption. Atmospheric trade routes, a category including several technologies (LEO and otherwise), are easy to block. Thus, an individual country could find its trade income severely reduced, and, on the other side, may also see its imports — including war materials — reduced if its atmospheric routes were closed. This discourages trade through this method. An international association of nations, agreeing to protect the right to trade, can curtail the threat of interference by making the cost too high. If an attack on a trade route is seen as a declaration of war against all nations of the association, and these nations come to defend these routes, few pirate governments would be willing to raid these networks. This type of guarantee would allow new trade to flourish, cheapened by new transportation technology that has made the world smaller than ever.
There are other ways this association promotes peace. Exchange brings welfare gains, and war brings welfare losses. As welfare gains rise, the relative attraction of war falls. Conflict is always preceded by the decision to embrace autarky. Trade also promotes bilateral capital flows, leading to foreign claims on domestic assets. These foreign claims are akin to collateral, that domestic governments can seize in the event of a war with this foreign power. Trade raises the costs to war along many margins. Further, GATA can reduce the costs of war for member nations. During a war, trade routes are often attacked. But, by defending atmospheric routes, and declaring them neutral to all conflicts, member nations will always be able to import needed materials — as long as neutral nations are willing to trade with you.
We invite all nations to partake in this endeavor. We ask that those who find the terms which follow acceptable should also nudge their neighboring governments, because the more GATA nations that sit along our trade routes, the more difficult they are to attack.
I. All members of the Global Aerospace Trade Association agree to defend the neutrality of the atmospheric trade networks that full under the jurisdiction of the association. The jurisdiction, in turn, is defined as all atmospheric trade routes between member nations.
II. An attack on a neutral trade line is to be interpreted by all member nations as a declaration of war. Member nations are only obligated to defend trade routes. In the event of an attack, GATA nations ought to organize a joint-defense. Member nations are, however, not obligated to defend each other proper.
III. Member nations agree to reduce tariffs and quotas on goods imported via atmospheric transportation to levels equal to goods imported via alternative transportation. In other words, atmospheric trade shall not be discriminated against.
IV. GATA has no jurisdiction over general trade policy.
V. Member nations who fail to meet any of the association's constraints will be automatically ejected, and those countries' atmospheric trade routes will no longer be protected by GATA law.
VI. In the event of "marginal neutrality," or — in other words — a situation where a government feels obligated to raise barriers to trade against individual nations (even member nations), GATA respects the right of a sovereign nation to set its trade terms in accord with its national security policy.
VII. If any GATA members find themselves at war with other GATA members, they can choose to restrict imports from and exports to those countries they are at war with. Third party GATA members are under no obligation to help either side, or protect those routes. However, trade routes between third party nations and those at war are still neutral, and an attack on those will be seen as an attack on GATA — the aggressor will be subjected to rule VI.
Signatories [15; Alphabetical]:
Azura
Eitoan
Haishan
Havensky
Houdou
Lamoni
Macabees, The
Mokastana
Morrdh
Palmyrion
Panama Coalition
Technocratic Syndicalists, The
United Vallerian Republic
United World Order
Urulandia