"So what the hell is an MTA trade writ?"
When Ves returned to his official office, he leaned back in his chair and lifted his shoes to his desk top. He felt awfully stiff after staying aboard an MTA battleship for several hours knowing that he was under a lot of scrutiny.
Now that he returned to his own ship, he immediately felt at home and wanted to do nothing more than to relax for the rest of the day.
He had a lot of questions, though. A lot had happened during his surprising visit and he needed to get to the bottom of them quickly in order to make sure his clan would do well once it reached the Red Ocean.
To do that, he called Shederin Purnesse first in order to get some answers.
The foreign affairs ministers of the Larkinson Clan looked surprised. "The Mech Trade Association actually extended a free trade writ to us, sir? Is it a permanent writ?"
"It's not a permanent one. Master Willix seemed quite reluctant to extend it to us, so we can only enjoy it for a single decade before it expires." Ves explained. "Juliet requested one for the clan for some reason. Did she do us a favor?"
"This… is a massive favor, sir!"
"It is?" Ves raised his eyebrows.
"If you have read up on the legal intricacies of operating in the Red Ocean, then you should know that the star systems under the control of the MTA or the CFA are one of the few places that are absolutely safe." Shederin began. "They function as the military bases and launching points of the Big Two's invasion of the Red Ocean. As far as I'm aware, the indigenous alien empires that occupy the dwarf galaxy have never succeeded in dislodging the Big Two out of these key star systems. They're now known as central star nodes."
"I've heard a bit about them, but how do free trade writs fall into this picture?"
"It's expensive to operate in a central star node. The MTA and CFA have heavily invested in their development, allowing them to raise its safety and infrastructure to impressive levels. This has also turned them into strong attractions, so much so that many people want to settle permanently in these paradises. That is obviously not what the Big Two has in mind, so they have implemented many measures to encourage people to go elsewhere."
"What kind of measures are we talking about?"
"You can broadly separate them into two categories. The first one encompasses taxes and fees. You need to pay a hefty sum to the Big Two for every day you spend in a central star node. Ships and other large assets incur fees as well. Then there are the taxes. There are high taxes for any transaction you make when you are in a central star node. No matter if you want to purchase fuel, raw materials or finished mechs, the MTA or CFA takes a hefty cut out of every trade."
"That sounds like a ripoff." Ves remarked.
"It's not, in a way. The Big Two offer a trading venue with impeccable security. You won't have to worry about pirates swooping in to steal all of the goods or a trading partner reneging on a deal by employing violence. The Big Two will also guarantee every transaction so that you can have absolute confidence that a trade will proceed as agreed upon. You can't obtain such certainty if you conduct the same transaction in an empty star system or in some dingy little colony where the local owners are aligned with one of the parties."
That indeed sounded rather sketchy. Strong and established states like the Heavensword Association and other second-rate states in the regions that the expeditionary fleet were traveling through didn't exist yet. Too little time had passed since the opening of the Red Ocean for alternative trade hubs to establish themselves.
"What about the second category of restrictions?"
"Oh, they are mainly laws and prohibitions that forbid the use of mechs and limits where people can live and stay. Visitors are heavily constrained in what they can do. If they run afoul of one of the prohibitions, then they can expect a steep fine and a direct passage out of a central star node. In fact, not just the occupied star system, but also a buffer zone around it are subject to restrictions."
The Big Two wanted the incoming pioneers to explore the depth and breadth of the Red Ocean. This wouldn't happen if too many newcomers opted to shelter right under their umbrella!
"So a free trade writ gives us an exemption to all of these trade barriers?" Ves guessed.
"Not all, but some. We still have to pay hefty fees for each day we stay in the star system and we cannot ignore the rules as we will, but what we can do is make direct transactions in a central star node without directly involving the MTA. While this means that they won't guarantee any private trades or crack down on any scams, we don't want to pay heavy taxes and fees either. This can make a huge difference in our profits. In fact, it will also allow us to attract a lot more customers as it is a lot safer to conduct trades in a central star node. I can imagine that weaker clients who aren't confident in their ability to protect themselves will eagerly embrace the opportunity to purchase mechs from us in a safe environment without paying at least 50 percent more."
Ves understood the true value of a free trade writ now. For 10 years starting from entering the Red Ocean, the Larkinson Clan could basically flog its products directly to consumers in huge, convenient hubs that were absolutely safe.
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