In response to a recent decision by the government of Haesan to place a tariff of 5% on all imported Xiomeran goods, the Xiomeran government has issued its own matching 5% tariff on all Haesanite goods entering Xiomera.
“We will match any punitive measure placed against us by foreign governments. We will not be coerced by foreign governments by any measure whatsoever,” Prime Minister Toquihu told the Imperial Parliament today in announcing the new tariff. In addition, the Prime Minister announced that Xiomera will immediately begin the process of “divesting our economy from Haesan and other so-called democratic states that believe they can use trade to force us into compliance with their will.”
The Prime Minister also said that “attempts to strangle us with trade will only force us to accelerate our efforts to find new sources for investment, trade and resources.” This is being seen by some as a veiled threat that Xiomera may ramp up its efforts to gain control of natural resources around the world as it already has in Huenya and in Roucourt.
Trade Minister Cuālincōcatle, speaking after the Prime Minister, said that Xiomera will order its corporate sector to begin closing all overseas operations in nations such as Haesan that are deemed to be acting in a hostile manner to Xiomera. Xiomera’s Trade Ministry will immediately begin seeking to instead relocate the bulk of Xiomera’s foreign manufacturing and investment to countries such as Kerlile, Opthelia, Eikangard, Shuell and Iskiram. While Xiomera’s government has not gone so far as to issue an outright ban on investment in any country, the Trade Minister stated that is an option on the table “should we continue to have difficulties with certain countries.” The Trade Minister said that the vision of the XCP has shifted from “free trade to friendly trade.” He said that Xiomera will now focus the bulk of its economic enterprise on nations that are either friendly to Xiomera’s government, or at least neutral on its actions.
While the decision to begin relocating investments and facilities from democratic states to non-democratic ones has been labeled as a new one, Economic expert Oswald Schnell with DTNS said that this is merely the ramping-up of a vision that has previously been expressed by Calhualyana and other Xiomeran leaders. “The Empress, the Prime Minister and other Xiomeran leaders have long bristled at attempts by foreign actors to use trade as a means of placing pressure on the Xiomeran government. They have openly discussed shifting Xiomera’s trade focus to non-democratic states since at least August 2021, when they signed a trade deal with Shuell. The decoupling of trade and the imposition of tariffs by Haesan, coupled with the seizure of Xiomeran assets by the Saladians, seems to have angered the Xiomerans enough to finally make this relocation of their economic focus a priority.”
This decision was initially met with some resistance by the Xiomeran business sector. The head of the Xiomeran Business Association, Xocolcōza, had expressed opposition to the plan. In what appears to be a move forced by the government, Xocolcōza was removed as chair of the XBA and replaced by Cuālincōcatle, the CEO of defense contractor Coatōn Corporation. After the change of leadership at the XBA, the Xiomeran business sector appears to now be fully on board with the government’s plans. Schnell said that the Xiomeran business sector once had the ability to veto government plans deemed harmful to corporate interests, or at least have a seat at the table to discuss them. “Under Calhualyana and the XCP, that is no longer the case. The once-mighty CEOs have been tamed, and they and the corporations they lead are now subjugated to the XCP,” Schnell said.
Schnell said that the belligerent and defiant tone being struck by Xiomeran leaders also reflects a major shift in the country’s attitude. “Under previous rulers, Xiomera valued its ability to trade and engage in commerce freely with all countries regardless of their political persuasion. Xiomera touted itself as the ‘store to the world’ and tried to avoid going too far right with its actions in order to maintain those trade relationships. Calhualyana and the XCP are increasingly making it clear that they view their ‘Xiomera First’ agenda as more important than those trade relationships. This Xiomeran government, unlike any before it, is prepared to sever ties with any nation it deems as interfering with its destiny.”
Xiomera to force workers in Haesan to return home
The Xiomeran government addressed the issue of Xiomeran workers currently in Haesan by stating that Xiomera “will not cooperate in any circumstance” with efforts by any of those workers to remain in Haesan. “They are Xiomeran citizens and they are expected to return home at once,” Minister of Loyalty Quihichua told the Imperial Parliament. The Minister stated that any Xiomeran worker who attempts to remain in Haesan will face charges of disloyalty to the Empire and treason back in Xiomera. The Minister also stated that the families of those workers who are still in Xiomera would also face investigation by the authorities on the same set of charges. This raises the specter of those family members finding themselves in Xiomeran prisons should the Xiomeran workers in Haesan attempt to remain there.
“We will not cooperate with any effort by those in Haesan to attempt to steal skilled Xiomeran workers. Those workers have no further business in Haesan, clearly, so it is now time for them to return home,” Minister Quihichua told the Parliament.
Xiomeran officials said that the Imperial government would reimburse Xiomeran corporations for the cost of returning workers back to Xiomera, and in turn reimburse itself for the relocation expenses with funds from tariffs on foreign trade.
