Japan approaches French Embassy

[California Republic]

The Japanese State approaches the French Embassy in Kyoto to start a dialogue in areas of overlapping interest.

[Kingdom of Burgundy]

The Francophone ambassador to Japan, Hadrien Moreau, welcomes the Japanese into the embassy happy to discuss common interests.

[California Republic]

Minister Hayashi Yoshimasa thanks ambassador Moreau for his openness to such a dialogue. And explains he has been asked to represent the Japanese government in negotiations for enhance trade connectivity between the two large economies, specifically citing the mutual benefit in the open exchange of rare earth elements and high tech manufactoring production, highlighting that the Francophone Alliance could greatly increase export of resources to Japan while gaining access to reduced cost in the tech sector if the two nations where to formalize free trade relations.

[Kingdom of Burgundy]

"I believe Japan and the Alliance are likeminded in these regards Minister Yoshimasa, perhaps we should discuss the details of what you had in mind?"

[California Republic]

"Japan lacks raw resources, and import duties represent around 30-40% of the cost of manufacturing in Japan. Costs that are transferred to the Japanese consumer, but also to all global users of our products, I might add that over 95% of the high end microprocessors on this planet are produced in Japan proper or Japans pacific holdings. France has large pools of resources critical to the manufacturing of these chips which are currently sold to Japan under standard export duties, those costs drive up the cost of producing these chips, and ultimately it is both the Alliance and Japan that pays, the Japanese state takes on the additional debt from these trade indifferences, and the Francophone Alliance ends up paying more for every chip purchase.

A propose a customs union in which Japanese manufactures would pay zero duties to import Francophone raw resources, in effect the Japanese market would have a open access to buy raw materials at market rate, with no trade duties or barriers, as a result the cost of Chips production will drop by nearly 20% and Japans deficit will be greatly reduced... but importantly to you would be the fact that Japan would in return remove all trade barriers to purchasing Japanese manufactured goods, the Alliance will have access to all Japanese manufacturing in the civil sector without duty or export fee.

The expected result is a reduction in cost of chip production by as much as 20-30%, reduction in cost of materials flowing into Japan to manufactor with up to 40%, and a reduction in the end cost for high end manufactured components exported from Japan to France up to 40%

Japan would be able to produce more cheaper, the Alliance would be able to buy more cheaper, and Francophone resource extraction companies would see benefit from the increased demand for their products, if we pay less for materials, we will buy more, resulting in more net sales for the Francophone industrial base. Japan expects both economies to see up to 1% additional economic growth per year just from the inaction of this customs union.

It is the intent of Japan to expand this union to eventually include Italy, and create a free trade Network where the three nations have shared access to each others Raw resources (FA), Oil (Italy), and high technology manufacturing (Japan)