Annual Summit Report 1.2 Sponsors: Russia, Spain, Azerbaijan, Germany, Pakistan,

Signatories: Afghanistan, Austria, Bangladesh, Belgium, China, Denmark, France, Germany, Greece A, India, Ireland, Lebanon, Libya, Mexico, Netherlands, North Korea, Pakistan, Poland, Saudi Arabia, Sweden, UAE, Zimbabwe,

The Global Tariffs Union,

1. Endorses a frame work under the heading of General Analysis on Tariffs and Sanctions (GAOTS) which will place trade restrictions on five levels in accordance with the severity of the breach which would determine the level of tariffs or sanctions imposed which are as follows:

a) First level: If trading partner countries involved in multilateral free trade agreements breach any form of trade parameters including exceeding the level of imports or exports, or the quantities of products imported or exported, in such a scenario the free trade agreement will be dissolved,

b) Second Level: If trading countries violate trade agreements and international trade policies lower tariffs of 5% should be imposed, such countries should be given one month to respond to revise the clauses breached in signed agreements,

c) Third Level: After the time frame of one-month the tariff will be increased to 10% which will be above the lower tariff previously imposed,

d) Fourth level: In the case of involvement in the trade of strategic goods including arms, ammunition, military technology and military equipment smart sanctions will be imposed on the groups, organizations and entities involved,

e) Fifth Level: In the case of military intervention, establishment of nuclear plants, testing of nuclear equipment which use excessive enriched uranium, testing of nuclear weapons or in the case of violation of any clause of the NNPT (Nuclear Non-Proliferation Treaty) if so economic sanction will be imposed;

f) The World Trade Organization (WTO) must consider the imposition and monitoring of all above levels of tariffs, trade sanctions, targeted sanctions and should try its best to implement such levels to improve international trade and increase trade globalization and liberalization;

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30 August 2015

Global Tariffs Union

Iqra University Model United Nations 2015

2. Accepts that imposing higher tariffs as an alternative to economic sanctions is considerable due to having less drastic effects on the LDCs economy, bilateral trade relations and vulnerable groups of society however certain parameters need to be set before agreeing to impose high tariffs: a) Bound tariff lines should be established by existing trade blocs within the

importing countries to make sure that there is a commitment not to increase tariffs above a specific level,

b) The level and rate of the tariff will be determined by the trade bloc under the supervision of the importing government,

c) The government of the importing country should engage in multilateral trade negotiations in order to increase binding coverage (limits set for tariffs) for value added products,

d) The binding of tariff makes trade more predictable by reducing the discretionary ability of the importing governments to increase tariffs;

3. Recommends LDCs to encourage and increase competition amongst domestic producers to make value-added products which usually have a low cost price, this can be done in the following ways:a) The governments of LDCs can subsidize local firms and businesses to

produce value-added products, having a low cost price they will sell easily on the international market even if higher tariffs are imposed by the importing country,

b) Domestic industries, firms and businesses should train their workers to meet with the required standard of value-added goods that need to be exported,

c) High quality luxury products can also be exported by luxury brands and businesses only if there is a high probability that they will sell on the international market and costs remain low;

4. Endorses multilateral trade agreements should be encouraged amongst the developed and developing countries having the following advantages:

a) Multilateral trade agreements will help to increase the expanse of trade with products being imported to more countries,

b) They will help to increase the quantity of products being imported and exported leading to further trade globalization,

c) When countries engage in multilateral trade agreements barriers including tariffs and quotas (limits to the quantity of an imported product) are reduced and sometimes eliminated,

d) It will help to open new markets abroad for the products produced by businesses, industries and firms;

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5. Encourages the government of LDC countries to take the following steps to improve domestic performance as higher tariffs tend to make imports expensive for the local people who will be unable to buy expensive imported products:

a) The government should subsidize domestic industries, firms and businesses to increase the production of goods that are high in demand,

b) All basic civic facilities including the provision of water, electricity and fuel should be provided to domestic industries to eliminate any hindrances to the production process,

c) More transport routes should be created by the government to encourage ease of transportation of goods and to increase geographical mobility,

d) The finance for such developments can be provided via a multilateral development bank funded by the trading partners of the country or international organizations who work to increase economic development;

6. Micro-finance should be provided to small and medium enterprises SMEs and cottage industries, their advantages include entrepreneurial development, reduced poverty and reduced un-employment;

7. Discourages the imposition of economic sanctions and stresses on the drastic impact faced by mostly developing countries, economic sanctions should not be imposed on countries until and unless:a) A comprehensive risk analysis is held on the actual reason for imposing the

economic sanction and whether or not punishing the country will restore international peace and security,

b) Round table talks are held between the government representatives of the country imposing sanctions and the target country to discuss how the imposition of the economic sanction can be altered,

c) The government of the target country should be given a time frame of at least one month to respond to the country imposing sanctions by amending its trade policy or terms of trade that were breached,

d) The target country should realize social, political and economic consequences of the imposition of the economic sanction;

8. Sanctions already in force by countries on LDCs should be efficiently monitored keeping in mind the humanitarian damage and disruption of economic welfare:

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a) Humanitarian damage should be reduced and the provision of essential goods must be exempted including food, medicines and pharmaceutical supplies,

b) The government and regional organizations should hold periodic meetings after every two-months stressing on how the impact of the economic sanction can be reduced,

c) The United Nations should send its humanitarian workers to LDCs to note the regional, economic and social damage and should report this to the United Nations Security Council,

d) Alternatives should be found to an economic sanction imposed on a country in the form of increased exchange controls and VERs voluntary export restraints which will create obstacles for the country in terms of trade but it wouldn’t have an extreme impact as comparative to economic sanction;

9. Smart sanctions can be imposed as they prove to be more effective and have the following advantages:a) They have the objective of applying political or economic pressure upon the

governing elite of the country and to persuade them to conform to international law,

b) The sanction if imposed will target the accumulated wealth these corrupt individuals and those individuals who were involved in money laundering,

c) Smart sanctions have no effect on the political and economic welfare of a country and will not in any way damage or be an obstacle to international trade and globalization,

d) It helps to increase transparency and encourages trade, it will also increase accountability when the actual perpetrators are brought to justice.

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