December 20, 2020       Asgardia Trade and Commerce Committee Authored by: John Fine, Committee Chairman

Agenda 2021

Introduction   This report is an overview of what legislative Acts the Trade and Commerce committee has worked on previously and a short description of each, plus the agenda moving forward into 2021. Our hope is this gives the reader enough information to seduce this committee's actions and plans accurately. Consider this report as a bridge to close the gaps in communication as we share this report with all of Asgardia, allowing the discussion process to get started from those who wish to share valuable information that may help with our efforts.  We hope that those who read this report become excited about becoming an Asgardian resident; you can join our team at https://asgardia.space/en/ and become a resident. Asgardia is genuinely the future of humanity in creating a peaceful Nation in space; if this sounds like something that interests you, please give us a look.   Our Mission Statement

“To create Private Business within Asgardia, we must create laws that support business creation, operations, opportunity, security, accountability, and management.”

Previous Agenda

 

For over two years, the Committee of Trade and Commerce has been working on five key pieces of legislation we felt were essential to the objectives of Asgardia. These legislation Acts were as follows:

 

The Asgardia Companies Act

 

This Act established what a private business was in Asgardia and how needed areas related to one another.

 

The Asgardia Business Act

 

This Act was a business regulatory act that established the initial regulations to business with Asgardia.

 

The Asgardia Intellectual Properties Act

 

This Act established protections of intellectual properties in all areas involved within Asgardia.

 

The Asgardia Consumer Protection Act

 

This Act establishes protections for Asgardians in consumable goods and services. Unfortunately, the world has plenty of fraudulent actions against humanity that can become very costly. Asgardians should have laws to protect them from such things; therefore, we created this Act to accomplish this.

 

The Asgardia Business Grants Act

 

This Act will establish a way forward in creating grants to assist Asgardians in starting, managing, and maintaining private businesses within Asgardia. Our committee feels it is essential to have a grants system to assist entrepreneurs in their dreams. However, we do not believe this should be a blank check; instead, a process that allows those with enthusiasm, dedication, commitment, and responsibility to qualify for financial assistance once that type of system is created.

 

 

 

The A.C.E. Act

 

During our deliberations, it was decided to combine three of these Acts into one Act. The HON initiated his Priority Legislation Policy where Parliament's committees were assigned key areas of Asgardia law that needed to be addressed and needed legislative governance. The critical area for our committee was Private Business. Looking to streamline our efforts and simplify the process, we decided that one Act would do the same work as three to integrate our objectives within the three into one. With the assistance of fellow parliament members outside our committee and the Chair of Parliament, we were able to draft a quality legislative Act appropriately named Asgardia Corporations and Enterprise Act, which we have given the short name A.C.E. Act.  The three Acts we combined were the Asgardia Companies Act, the Asgardia Business Act, and the Asgardia Intellectual Properties Act. We felt these three acts were all related to private business, and each other therefore combining them would help simplify the process.

 

Future legislative endeavors 2021 and beyond

 

Our main priority is, of course, the passing of the A.C.E. Act. We appreciate any support towards this Act and ask Asgardians to write or contact their district's legislative representatives and support the A.C.E. Act. We feel early in 2021 this Act will be approved, and to keep the progress of Trade and Commerce moving forward, we will start to focus our attentions on a new legislative Act that will establish how Asgardia leadership, citizens, and residents interact with the trade and commerce of the world. These are the key areas we will first focus our attention on to establish a draft Act:

 

Dispute Settlements

 

We commonly participate in negotiations during our daily activities, often without being consciously aware.  Negotiation can be simple, like friends deciding where to eat dinner, or complex, as governments of multiple countries establishing import and export quotas across multiple industries.  When or before a formal proceeding is started in the court system, alternative procedures of solving disputes, thus avoiding litigation, could be used; one such way is alternative dispute resolution (A.D.R.).  Negotiation is often the first step used in A.D.R. While there are other forms of alternative dispute resolution, negotiation is considered to be the simplest because it does not require outside parties. In a Thesis paper written by Nataliya Baytalskaya attending Pennsylvania State University, the U.S.A. in 2008, she defined negotiation as the "process by which parties with nonidentical preferences allocate resources through interpersonal activity and joint decision making." Resolving trade disputes is one of the principal activities within the World Trade Organization. Therefore, Asgardia must align themselves with the W.T.O. since they are primarily related to the United Nations. Our goal will be to draft a provision that shows this alignment and give Asgardia a firm resolution process.

 

Cross Border Transactions

 

With today's global economy, businesses are required to follow specific national and local laws. This action can make cross-border deals complicated. For example, if a company from France decides to form a subsidiary in Spain, both businesses have to know the legal and tax implications of both countries. Although some Nations are forming free trade agreements that merge business ideologies, there are still many regulations to consider to stay legal. Our committee will find the best provision to address this issue as we research International business in cross-border transactions. Having a legal professional solely responsible for reviewing these transactions and ensuring all parties have what is needed would be the best way to address this provision.

 

Customs Valuation

 

As described by the W.T.O., "Customs valuation is a customs procedure applied to determine the customs value of imported goods. If the rate of duty is ad valorem, the customs value is essential to determine the duty to be paid on an imported good. Customs duties can be designated in either specific or ad valorem terms or as a mix of the two. In case of a specific duty, a concrete sum is charged for a quantitative description of the good, for example, USD 1 per item or per unit. The customs value of the good does not need to be determined, as the duty is not based on the value of the good but on other criteria. In this case, no rules on customs valuation are needed and the Valuation Agreement does not apply. In contrast, an ad valorem duty depends on the value of a good. Under this system, the customs valuation is multiplied by an ad valorem rate of duty (e.g., 5 percent) in order to arrive at the amount of duty payable on an imported item." so basically this is a fee on an imported item when the right circumstances apply. It sounds like another area of expertise within a legal framework, so I recommend this is added to cross-border transactions.

 

Rules of Origin

 

W.T.O. "Rules of origin are the criteria needed to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports. There is wide variation in the practice of governments with regard to the rules of origin. While the requirement of substantial transformation is universally recognized, some governments apply the criterion of change of tariff classification, others the ad valorem percentage criterion, and yet others the criterion of manufacturing or processing operation. In a globalizing world, it has become even more important that a degree of harmonization is achieved in these practices of Members in implementing such a requirement." I agree that we must harmonize our efforts; Asgardia will need a certificate of origin, negotiate across borders to harmonize efforts, and stay in line with the W.T.O. objectives. Therefore, my recommendation is a provision is written with these objectives in mind.

 

Import Licensing

 

W.T.O. "import licensing is defined as administrative procedures1 used for the operation of import licensing regimes requiring the submission of an application or other documentation (other than that required for customs purposes) to the relevant administrative body as a prior condition for importation into the customs territory of the importing Member." Each Nation has its own rules on import licensing, and this too looks like an area that would fit the same provision classification as cross border transactions. Therefore, I suggest we add it to that particular provision.

 

Safeguards in Trade

 

W.T.O. "A WTO member may take a "safeguard" action (i.e., restrict imports of a product temporarily) to protect a specific domestic industry from an increase in imports of any product which is causing, or which is threatening to cause, serious injury to the industry. Safeguard measures were always available under the GATT (Article XIX). However, they were infrequently used, and some governments preferred to protect their industries through "grey area" measures ("voluntary" export restraint arrangements on products such as cars, steel, and semiconductors). The W.T.O. Safeguards Agreement broke new ground in prohibiting "grey area" measures and setting time limits ("sunset clause") on all safeguard actions." Safeguards are simply protections in trading procedures. In Asgardia, we should gravitate towards areas of protection. The W.T.O. and its objectives and Asgardia Constitution and its objectives. A provision stating this type of action should be sufficient.

 

Anti-dumping

 

W.T.O. "Anti-dumping actions:  If a company exports a product at a price lower than the price it normally charges on its own home market; it is said to be "dumping" the product. Is this unfair competition? Opinions differ, but many governments take action against dumping in order to defend their domestic industries. The W.T.O. agreement does not pass judgement. Its focus is on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the "Anti-Dumping Agreement. " Well, Asgardia should not allow dumping in Asgardia or perform dumping on other nations. If a company is dumping, fines should be assessed, and if it continues, they should lose their certification to do business in Asgardia. This assessment is my view of any company, whether they are an Asgardian company or one from earth nations.

 

Tariffs (Custom Duties)

 

Investopedia: "Tariffs are used to restrict imports by increasing the price of goods and services purchased from another country, making them less attractive to domestic consumers. There are two types of tariffs: A specific tariff is levied as a fixed fee based on the type of item, such as a $1,000 tariff on a car. An ad-valorem tariff is levied based on the item's value, such as 10% of the value of the vehicle." I believe that we should give Asgardia government the ability to impose a tariff; however, it should limit how it is used. It can not be used as an unfair advantage over another nation; it could be disciplinary action against a nation being a bad state actor. I also believe caps be placed on how much tariffs are imposed onto another nation if such an action is warranted. Tariffs should also be a method of last resort after all other negotiation methods have been exhausted.  I also believe we should follow the W.T.O.'s guidance and recommendations and use them as a mediator of tariff imposing actions.  

 

Trade-related investments

 

W.T.O. "Under the Agreement on Trade-Related Investment Measures of the World Trade Organization (W.T.O.), commonly known as the TRIMs Agreement, W.T.O. members have agreed not to apply certain investment measures related to trade in goods that restrict or distort trade.

The TRIMs Agreement prohibits certain measures that violate the national treatment and quantitative restrictions requirements of the General Agreement on Tariffs and Trade (GATT).

Prohibited TRIMs may include requirements to:

• achieve a certain level of local content.
• produce locally.
• export a given level/percentage of goods.
• balance the amount/percentage of imports with the amount/percentage of exports.
• transfer technology or proprietary business information to local persons; or
• balance foreign exchange inflows and outflows.

These requirements may be mandatory conditions for investment or can be attached to fiscal or other incentives. The TRIMs Agreement does not cover services." This looks like a managing tool that helps keep trading practices equal. If we are to become a member of the W.T.O., we would need to implement the measures of this agreement. A provision specifying our compliance to the TRIMs Agreement should suffice and be appropriate.

 

Trade Tax

 

This topic is one for our Asgardia Lawyers; most likely, trade tax will be addressed in treaties developed between Asgardia and nations of Earth. I would say this topic will fall under Trade Treaties and the stipulations of such tax will be negotiated and addressed by our legal team. I recommend it fall under trade treaties, and the Ministers of Equity and Resources, Finance, and Justice all have a part in the management of said treaties.

 

e-Commerce or Digital Trade

 

United Nations: "The digitalization of the economy requires new ways of thinking about competition, intellectual property, taxation, industrial policy, privacy, cybersecurity, the labor market, immigration and skills and, of course, trade. The internet powers the wheels of international trade. From the smallest informal trade to a major supply agreement, contracts are transacted online, whether via email, e-commerce store, or digital platform. Any formal trade relies on the internet for implementation – financing, documentation, and logistics are all digitally-driven and becoming more and more so. Whether it is an emailed order, an online purchase, or merely the financial arrangements behind the transaction, the internet will inevitably be used in conducting international trade." This issue is the single most crucial area when it comes to business within Asgardia. We must protect the Asgardian's ability to conduct digital trading. We must also recognize that there will be many regulations born from these trading practices. For now, I believe our terminology needs to be broad and allow other Acts and provisions to do the regulatory work.

 

the Tort System

 

OpenStax: "Torts; Civil suits involve different causes of action, and they are included in one general classification: torts. The word "tort" means "wrong" in French. Thus, torts are wrongs committed against others who suffer some form of damage as a result. While these damages could also be the result of criminal action, the criminal element of the matter is not tried in a civil lawsuit. The standard of proof is lower for civil suits, and a finding of liability in a tort case does not necessarily translate to guilt in a criminal case. The actor of the wrongs has historically been called a tortfeasor. When a wrong is committed by a tortfeasor, damage is done to another. Tort law seeks to address this damage based on the circumstances of the issue, which is based on fault. Civil lawsuits are used by the injured parties to seek redress for the loss associated with the tort. Unlike criminal proceedings, redress is often provided in the form of money as opposed to incarceration. As such, the burden of proof of fault is lower. The offender, or tortfeasor, who commits the Act is the accused in a civil suit. The plaintiff, who is the injured party, files the lawsuit on which the civil court will make a decision. The offender ultimately becomes the defendant, who must respond to the accusations of the plaintiff in a civil suit. During tort litigation, the judge and jury have certain separate functions (Kionka, 2013)." We should either have a provision for the tort system or have our Justice committee provide us with the provision. I would imagine the Consumer Act will provide most of the protections resulting from a tort. This area will need to have many debates over with our Justice committee and refer to the Consumer Act while those discussions occur.

 

Antitrust Laws

 

To protect the consumer from antitrust, I believe the Consumer Act will suffice as the regulatory means to manage antitrust. However, with Asgardia, we will have to have our antitrust laws that regulate unfair business practices. I suggest a broad provision that states unfair business practices, whether against consumers or between businesses, will not be tolerated and will result in the Asgardia legal system's punitive actions. I would suggest we also work with the Justice committee on this provision because it involves contract agreements and litigation procedures.

 

Criminal Liability

 

There are all kinds of crimes that can result from business activities. Our constitution guarantees that these crimes will not be tolerated or go unnoticed. We need an explicit provision that states these facts, and we will again need to collaborate with the Justice Committee in drafting this provision. Regardless of the protections in the Consumer Act concerning criminal liability, this provision must address all business transactions' legal liability within the trade and commerce community of Asgardia.

 

Free Trade Agreements

 

I recommend we allow free trade agreements, and they should be pursued whenever possible within Asgardia. Our trade negotiations will have to negotiate these agreements between nations and use the W.T.O. as the mediator of such agreements. "Free Trade" is a broad term that describes many different types of agreements that have been made between nations. Everything from regional trade agreements to preferred trade agreements falls into this category. We could probably put this provision under Trade Treaties; trade partnerships would also be along the same lines as agreements and should fall under Trade Treaties as a sub-category.

 

Trade Partnerships

 

I.T.A.: "The International Trade Administration (I.T.A.) recognizes the importance of collaboration and partnership for international business success. I.T.A. created the Strategic Partnership Program to better leverage the work of trade associations, chambers of commerce, educational institutions, and other organizations that support I.T.A.'s mission. Our Partnerships help to broaden and deepen our outreach by enabling I.T.A. to share critical export and investment information with millions of U.S. businesses." I recommend creating a sub-category under Trade Treaties that allows partnerships to be formed and managed concerning trade and commerce activities.

 

Trade and the Environment

 

W.T.O.: "Sustainable development and protection and preservation of the environment are fundamental goals of the W.T.O. They are enshrined in the Marrakesh Agreement, which established the W.T.O. and complement the W.T.O.'s objective to reduce trade barriers and eliminate discriminatory treatment in international trade relations. While there is no specific agreement dealing with the environment, under W.T.O. rules, members can adopt trade-related measures aimed at protecting the environment provided a number of conditions to avoid the misuse of such measures for protectionist ends are fulfilled." I agree with this statement and recommend that Asgardia adopt the same ideology towards protecting the Earth's environment. We must also protect the outer space's environments, the moon, Mars, or any other planetary bodies or objects within space. Therefore, we need a vital provision affirming this concerning trade and commerce.

 

Manufacturing and Trade

 

There are times when manufacturing and trade coexist, so we must work with the Manufacturing Committee on a provision that describes this relationship and its boundaries. Manufacturing will become an essential component of Asgardia; therefore, I thought it would be appropriate to include a provision within the T.C.C. Act that showed our relationship.

 

Trade Adjustment Assistance

 

The United States has a robust Trade Assistance program I feel is a positive program that gives genuine assistance to those involved in foreign trade. I feel Asgardia could adopt a similar program and be in line with our constitution's objectives. Therefore, I suggest we add a provision that allows the creation of such a program and give the Minister a broad ability to regulate and manage policies concerning such a program.

 

And Trade Treaties.

 

International trade treaties are an essential part of Asgardia, and the pursuit of is guaranteed within our constitution. We must acknowledge trade treaties in a provision, plus we will have sub-categories to be added as well. Trade treaties will impact many departments across the spectrum of Asgardia, so we will need to involve most of the other committees to effectively produce an adequate provision concerning trade treaties.

 

I have decided to call this Act Trade and Commerce Compliance Act (T.C.C. Act) to simplify matters. In this Act, we will have how Asgardia interacts with international trade from every aspect needed to create successful trade laws within Asgardia.  You will also notice that much of the information was taken from the W.T.O. I believe the W.T.O. is aligned with Asgardia and our objectives; therefore, it is important to follow guidance from an organization that has been in the service of helping humanity for an exceptionally long time.

 

Future Acts ready for approval

 

 The Asgardia Business Grants Act and Asgardia Consumer Protection Act have already been drafted and gone through committee deliberations. We will seek to have these Acts debated within the Asgardia Legislative Forums to get them finalized and put on the official Asgardia Parliament session agenda. Our committee is confident these Acts play an essential role in Asgardia, and we have received overwhelming supports from our fellow parliamentarians who agree with their importance.

 

Residents of Asgardia

 

We present this report to our Asgardia residents to play an active role in the governance of Asgardia. We welcome any suggestions, comments, or information from our residents to assist us in this endeavor. For any resident that wishes to contribute, you can go to the Asgardia main website ( https://asgardia.space/en/ ) and go into the Asgardia communities section labeled Trade and Commerce 2021 Agenda. Feel free to leave any useful information on this platform you feel will help our committee reach its 2021 Agenda objectives. I will also post this report on my private blog page on the Asgardia website, and you can respond there as well. Finally, a copy of this report could be distributed within the Asgardia Slack, Discord, Asgardia official Facebook page, and my website blog page, which you can find at  https://www.meetampfine.live/blog.

 

SUPPORT ENTREPRENEURIAL BUSINESS GROWTH

 

With technology advancing exponentially, economic opportunities are becoming available to many as the world moves towards globalization.   The internet has become a useful tool for advancing one's financial portfolio as global trading practices become less restrictive and competitive. Therefore, the Trade and Commerce committee supports entrepreneurial business growth and believes those pursuing business ventures can succeed if they are determined enough to complete the process. Our goal is to provide as much assistance as possible through legislation to help Asgardians reach their business objectives. A useful resource for those who wish to learn more about international business and take some free lessons that deliver the training you need to make profitable export sales click on this link https://export-u.com/index.html.   As we advance into 2021, we will endeavor to make every effort to complete our legislative Acts and await their approval into law.

 

 

Closing Remarks

 

I want to wish our entire Asgardia family a wonderful Christmas and New Year to move forward into the 2021 Agenda. I want to give condolences to those who have lost love ones and gone through the incredible challenges of the Covid-19 pandemic and wish healing on all as we move into the future. I hope that 2021 will be the end of COVID-19, and we can get back to face-to-face contact, traveling, and enjoying the close relations of our friendships. The completion of this 2021 Agenda will get Asgardia one step closer to reaching the objectives of Asgardia and moving our great Nation into space. Despite the challenges of 2020, I believe we have made real progress in Parliament, and already we see the fruits of our labor. I want to thank all my colleagues, friends, and fellow Asgardians for the tremendous efforts in creating the foundations needed for our success. We are not without failures but failing is our way of succeeding. If we never try, then we have nothing, but the objective is to try. Action speaks louder than words, so it is essential to talk about what you want to do; however, it is more important to do what you want to do. As always, One Unity, One Humanity, my love and respect to all, Best Regards

 

 

 

 

 

 

 

 

 

 

 

 

 

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