We, the sovereign nations of La Republique Latine de St. Esprit and the United Provinces of Eutopia, jointly and individually acknowledge that the benefits of free intra-island trade outweigh any disadvantages and do hereby establish this treaty to maintain the freedom of intra-island trade.
Article I. Founding Member States
The sovereign nations of El Reino del Tilapia, La Republique Latine de St. Esprit, and the United Provinces of Eutopia are eligible to become founding member states, with the rights and privileges as defined herein. To become a founding member state that nation must ratify this document within one year of the time the first eligible founding member state does so.
No additional nations may apply for membership within one year of the time the first eligible founding member state ratifies this treaty. After that time, any prospective additional member nations must be approved unanimously by all current founding member states.
A founding member state can, by providing three months notice, withdraw from the provisions of this treaty. If, later, it should wish to rejoin, it would be subject to the approval of all current founding member states, under the same criteria for other prospective additional member states, except that, upon rejoining, it could resume its founding member status. [Please see Notes below]
Article II. Duties
The member states will enact laws, adjust regulations, or make other changes as necessary such that the trade in goods, services, labour, capital, and intellectual property between signatories is not taxed in any way differently than domestic commerce in the same areas.
The free trade in goods does not include substances that are prohibited by law (such as illegal drugs or ivory) in any member country, or illegally obtained goods (stolen or manufactured under illegal conditions). Export subsidies are deemed to be in contravention of this treaty. The free trade in services or labour does not include contracts that oblige slavery or indentured servitude longer than one month. The free trade in capital does not exempt capital from income taxes.
Each signatory shall appoint a representative to CAFTA to attend meetings to take place on such a schedule as the signatories decide, but not less than annually.
Article III. Goals
The harmonization of tax rates, professional qualifications, quality standards, and vehicle inspection standards will facilitate the operation of this treaty and are encouraged.
Article IV. Consultation and Dispute Resolution
At the meetings, the progress towards harmonization will be reviewed, as well as any disputes regarding the duties of each signatory with respect to maintain free trade among the signatories. If the actions of a signatory are found not to be compliant with the terms of this treaty by two-thirds of the founding member states, a report to that effect will be distributed to all member states. The same item will be reviewed one year later. If the same condition persists, the membership of the nation found to be contravening the terms of this treaty may be suspended for one year, after a three-month notice period. Such a suspension can be renewed.
Article V. Amendments
This treaty can be amended by unanimous ratification of the proposed changes by all founding member states.
CURRENT SIGNATORIES
La Republique Latine de Saint Esprit, Founding Member
United Provinces of Eutopia
[NOTES: Only St. Esprit is a founding member state; meaning that St. Esprit can amend this treaty and invite new members by itself. The Kingdom of Tilapia has agreed to abide by the spirit of the treaty, but has not signed it]
