The 2006 Import Tariff Act was a significant economic reform proposed by CRF Senator Florijan Kostic and passed under the government of Stoyan Vasilis. It drastically reduced import duties on foreign steel, electronics, and luxury goods, marking a definitive break from the protectionist “Statist-Labor” policies of the Sanjakorin era.
The legislation was a victory for the “Merchant Coalition”—an alliance of Blue Dawn technocrats, CRF free-marketeers, and the corporate wing of Vjetrusa led by Bran Maj. It facilitated the rapid expansion of private retail chains like RiG and Kasa24, but deeply angered the industrial unions and the northern regionalists, who viewed it as a threat to domestic production.
Background
Since the 1988 State Enterprise Act, Kresimiria had maintained high tariffs to protect state-owned industries like Otonik Ordnance and National Energy. By the mid-2000s, however, this protectionism was causing stagnation.
- The Tech Demand: The rising demand for computers and mobile phones (precursors to the KresiX rollout) could not be met by domestic manufacturers alone.
- Construction Costs: GradnjaMC and private developers complained that the price of domestic steel was inflating the cost of the housing boom in Sinj.
Key Provisions
- Steel Liberalization: Tariffs on imported steel were cut by 40%. This allowed Maj Holdings to import cheaper raw materials for its processing plants, bypassing local mines.
- Electronics Exemption: Computer components and consumer electronics were exempted from the “Luxury Tax,” lowering the barrier to entry for digital adoption.
- Retail Deregulation: The Act streamlined the customs process for private retailers, allowing chains to stock foreign goods without going through the NaroMart supply chain.
Parliamentary Passage
The vote exposed the deep economic rifts within the nationalist parties.
- The Free Trade Bloc (14 Votes):
- Blue Dawn: Vasilis encouraged the party to support the bill as a modernization measure.
- CRF: Leader Boj Volansky and Senator Topi Topolski enthusiastically supported the bill, aligning with their liberal ideology.
- Vjetrusa (Corporate): Senator Bran Maj voted in favor, as the bill would massively increase the profit margins of his logistics and retail divisions.
- The Protectionist Opposition (6 Votes):
- Northern Power: Leader Syv Iric led the opposition. He argued that importing cheap steel would destroy the mining jobs in Severnivaraje.
- Vjetrusa (Populist): Senator Viktor Durak broke with his party colleague Bran Maj. He voted against the bill, calling it a “betrayal of the Kresimirian worker” that would flood the market with cheap foreign trash.
- Sons of Kresimir: Tihomir Bran voted against, viewing foreign imports as a vector for cultural corruption.
The Act passed 10-8.
| Senator | Vote |
|---|---|
| Magdalena Zuvic (BD) | For |
| Sara Korunic (BD) | For |
| Viktor Durak (VJ) | Against |
| Ljubo Sanjakorin (BD) | Against |
| Bran Maj (VJ) | For |
| Tihomir Bran | Against |
| Syv Iric (NP) | Against |
| Branimir Hup (NP) | Against |
| Florijan Kostic (CRF) | For |
| Dino Colic (BD) | Against |
| Topi Topolski (CRF) | For |
| Stoyan Vasilis (BD) | For |
| Mia Marija Pavlovic (CRF) | For |
| Zoran Pesic (BD) | Against |
| Kresimir Bukowski (BD) | Against |
| Misko Maretic (VJ) | For |
| Ari Stov (BD) | For |
| Boj Volansky (CRF) | For |
| Jannik Lehr (BLF) | - |
| Isaak von Steuer (BLF) | - |
Impact
The Act triggered a consumer boom.
- Retail Expansion: RiG (Rad i Gradnja) flooded the market with high-quality foreign tools, capturing the professional market from NaroMart. Kasa24 began stocking foreign snacks and alcohol, becoming the preferred store for the youth.
- Northern Decline: As predicted by Iric, the price of domestic coal and ore plummeted, leading to wage cuts at SeverMin and fueling the resentment that would help Northern Power sweep the northern districts in later elections.