Montecara–Euclean Community relations
Movement of goods and people
Montecara and the EC have been in a customs union since 1 January 2001. Goods can move between the EC and Montecara tariff-free, though they are still subject to inspection for health and safety reasons. This includes both material goods and utilities such as drinking water and electricity. As part of their trade agreement, Montecara and the EC agree to respect one another's policies in regard to protected designation of origin and traditional specialty foods. Laws regarding consumer protection, workers' rights, and the environment are generally in harmony, but conformity is not a legal requirement of any current bilateral agreement. The only major area of exception to trade liberalization is agriculture and fisheries, which remain subject to certain quotas and controls.
The EC is Montecara's largest trading partner by a wide margin, and Florena is its largest individual state trading partner. Montecara relies almost entirely on the EC for its supplies of such staples as food and chemicals. The EC is the destination of the vast majority of Montecara's exports, especially precision tools, luxury goods, medical instruments, and pharmaceuticals.
EC citizens are allowed to enter Montecara without a passport and vice versa; a national identity card that states citizenship is sufficient. The EC and Montecara have a mutual travel policy that allows citizens of either entity to spend up to 180 days in any 365-day period in the other visa-free for personal or business reasons. Visas are still required to work or study.
Montecara is a member of the Euclean Common Defense Treaty Organization (ECDTO), which it joined at the organization's founding in 1948. It cooperates in ECDTO planning and exercises and allows member states' navies to make regular port calls at its harbor.
|Ratification of EC Membership Agreement, 1996|
|To ratify the agreement negotiated by the State of Montecara and the Euclean Community with the aim of securing membership in the Community|
|Date||June 28, 1996|
Montecara's last serious attempt to join the EC was made in 1996, when the Colegio and Senate both approved the necessary treaties of accession. When they came to a vote by the Popular Assembly, however, they were defeated by a margin of over 60%.
In the lead-up to the Popular Assembly vote, major trade unions came out strongly against the proposal, arguing that membership in the Community would undermine worker protections and allow an influx of cheap foreign labor into the country. Small entrepreneurs and craftsmen also feared increased competition from abroad, and renters reported concerns about increased housing costs and fewer available units in consequence of mass migration.
The financial sector, on the other hand, was strongly pro-membership, and executives of several prominent banking institutions made public statements to the effect that Montecara would stand to gain far more than it would lose by having essentially unrestricted access to a vast capital market. Many political liberals also supported membership on the basis of heightened international cooperation and the progress of the pan-Euclean project. Students and young people also generally supported membership for several reasons, including the increased ability to live, work, and study abroad.