Mercantile Republic

Originally created as **El Vencedor**, the **Mercantile Republic** is a mercantilist independent state in South America.

## History

The origin of the Mercantile Republic (*Republica Mercantil*) has its roots in the immediate aftermath of the Zentraedi Rain of Death. Compared to other nations in the region, Uruguay had been left relatively undamaged in the bombardment, and represented an island of safety compared to the devastated  lands of Argentina, Chile and Paraguay. Seen as a safe haven from the chaotic aftermath of the planetary assault, the country was soon inundated with refugees swarming in from all sides.

Unwilling and unable to take on the tidal wave of refugees, the Uruguay government attempted to turn them back. Instead they found that not only were the refugees too desperate to be deterred, but that many of them also were armed and willing to fight to get to safety. Furthermore, many within the military refused to fire on desperate civilians, who just wanted to find some measure of safety. Uruguay splintered into civil war between pro and anti-government factions, with the refugees groups only adding to the chaos. While many simply were looking for shelter, others took the opportunity to size lands and set themselves up as local warlords.

After two years of strife, the country was conquered by General Alfonso Mendoza, an Argentinian officer who had been a leader of one of the largest refugee groups. After seizing control of the capitol city of Montevideo, he purged anyone who was not willing to pledge loyalty to his new republic in order to cement his control. However, he also was careful to ensure that those who ran the country's still-intact industrial base were spared as long as they were willing to pledge their loyalty to him (Or, at the very least, be bought off). Due to the combination of his charisma and his willingness to enforce his will by any means necessary, there was little opposition to his rule.

Renaming his state as El Vencedor (“The Victor”), Mendoza sought to take advantage of the situation. He used his country's industries to produce goods that were already in short supply in the rest of South America, but especially had his eyes towards producing weaponry. With central authority still lacking and with armed Zentraedi uprisings breaking out across the continent, he knew that weapons would be in demand from all parties. His reasoning proved to be on-point, and soon the nation was selling weapons across the continent. In many cases, those weapons ended up in the hands of bandits, insurgents or even micronized Zentraedi malcontents. Mendoza largely didn't care who used them, as long as they were willing to pay.

However, Mendoza also had no desire to bend the knee to the UEG, especially not if they were going to clamp down on his lucrative trade. As such, he gladly signed a defensive alliance with Anatole Leonard's newly formed Army of the Southern Cross, a move that helped bolster his own defences forces, while also bringing in Leonard as another buyer for his weapons. Otherwise, he maintained a policy of careful neutrality, neither supporting nor actively countering the UEG. While some suspected that Mendoza might have had links to the resurgent Anti-Unification League, he showed no signs of supporting them, at least not publicly. Of course, that did not stop Republic-built weapons from ending up in AUL hands.

The start of large-scale Zentraedi uprisings only served to further cement Mendoza's position and the Republic's importance. Positioned on the southern edge of the Amazon region, the Republic served both as a bulwark against insurgent groups as well as a base of operations for strikes counter-insurgency operations. Seeing an opportunity, Mendoza struck a deal with the UEG. In exchange for membership and economic aid, he allowed them to base troops in the country.

Ironically, for the Republic, the uprisings were a good time. Officially, it was a centre for arms manufacturing, supporting both the Southern Cross and other independent powers. Under the surface, however, it was a hive of corruption, with black markets, organised crime syndicates and mercenary operations thriving. As long as those operations did not interfere with Mendoza's rule, he was glad to turn a blind eye towards them. While a number of sources have claimed that he was in on these rackets and was profiting directly from them, nothing was ever proven.

This boom time would not last. While the end of the Uprisings bought relative security to the region, it also was a blow to the Republic. Now entirely focused on the Pioneer Mission, the UEDF pulled out much of their strength, while the flow of economic aid dried up. With the end of the uprisings, El Vencedor faced greater economic competition from growing economies in the region. The country's economy staggered, leading to broad unrest among the population. Behind the scenes, many of the country's oligarchs were unhappy at seeing their income waning, and were reconsidering their support of Mendoza.

In 2020, El Vencedor formally seceded from the UEG. Mendoza renamed the country to the Mercantile Republic, and instituted a series of reforms that loosened controls on the economy, put power into the hands of the oligarchs and removed restrictions on trade. Mendoza also sought out allies among other non-UEG states (such as the Barony of York and Ethiopian Freeholds), seeking to act as a major arms supplier to them. These actions did a lot to stabilise the economy and quell unrest, but came at the expense of civil liberties and workers' rights.

Due to its location, the Second Robotech War barely touched the Mercantile Republic, although its industries profited off various independent nations that suddenly had a desperate need for weapons. The Stone Men's coup in Brasilia following the Second Robotech War and the subsequent splintering of the continent played directly to the Republic's favour, creating even more chaos and markets for the weapons the Republic produced. While representatives from the Republic attended the Pinnacle Base summit, they had no interest whatsoever in the proceedings, instead using it as an opportunity to drum up support and sales.

No longer content to be just an economic power, and knowing that nobody was going to stop him, Mendoza made moves to increase his country's standing by force. Discretely recruiting mercenaries and ASC deserters with the lure of freshly-built weapons, he quickly increased the size of his army. In late December of 2030, Mendoza launched operation COBRA MORTAL ("Deadly Cobra"), an invasion of the fragmenting Argentine Quadrant. Facing little organised resistance, the Republic's forces made considerable advances in short order, including encircling Buenos Aires. Privately, Mendoza dreamed of reclaiming his homeland and bringing the southern half of the continent under his control.

That dream would be short-lived. In January of 2031, the Invid invaded Earth. Montevideo was destroyed in the initial bombardment, with Mendoza reportedly killed. The Mercantile Republic's armies were swarmed by the Invid, and, with their command structure decapitated, collapsed within days of confused fighting. The Mercantile Republic, along with all the other nations of Earth, simply ceased to exist. From the ruins of its territories emerged a morass of petty kingdoms run by Invid sympathisers and collaborators.

While it was destroyed, the Mercantile Republic did have one lasting legacy. In the years following the invasion, Republic-produced weapons would find their way into resistance fighters across the continent.

## Geography

The Mercantile Republic comprises of the entirety of the pre-war nation of Uruguay, with its northern boundary extending beyond those borders into what was previously the Brazilian state of Rio Grande do Sul. The country has a humid, subtropical climate, with much of its territories consisting of grasslands or forests. The county is largely flat, and lacks any major mountains. Its interior features several large river basis that help regulate the climate. The country is bordered to the south and east by the Atlantic Ocean.

Even compared to other parts of South America, the region was only lightly damaged during the Rain of Death. All of its major population centers survived, resulting in the population being largely concentrated on the southern coast. The capitol city is Montevideo.

## Government and Politics

The Mercantile Republic is essentially a military dictatorship with mercantilist stylings. Supreme power lies solely in the hands of General Alfonso Mendoza, who has remained the country's leader since its formation. The nation does possess both legislative and judicial assemblies, but both bodies are entirely controlled by those loyal to and appointed by Mendoza, and serve largely as rubber-stamp bodies to approve his policies while giving him an air of legitimacy. Actual power largely lies in the hands of the *Ejército Republicano Mercantil* (Mercantile Republican Army) who answer directly to Mendoza.

Outside of the army, Mendoza's major support comes from two groups. The first is the mercantile oligarchs who control much of the country's industry through their various corporations. Their relationship with Mendoza is largely symbiotic; he ensures that there is little oversight to their activities and little regulation on their operations, and in return they help to manage the economy, ensuring that the country more or less functions. As a result, the oligarchs wield considerable power within the country and are able to influence the General's rule.

The second is the country's considerable organised crime groups, especially its black markets and arms dealers. Essentially they operate through a combination of bribery and informal agreement. By paying kickbacks to Mendoza and his loyalists, they ensure that there is no government interference in their operations.

The ERM is one of the largest militaries in South America, and the best equipped. Much of its strength is made up of conventional vehicles, many of which are built locally and often date back to the Global Civil War. However, it also features small amounts of Mecha, including locally-built clones of the Stoneman and Hood as well as the MR-02 Protector Battloid. The ERM is stacked with Mendoza's loyalists, and career advancement is entirely dependent on loyalty and obedience. In the months following the Second Robotech War, the ERM rapidly expanded through hiring former ASC soldiers (often with their Mecha and equipment) as mercenaries.

During the Malcontent Uprisings, El Vinencidor mantained mixed relationships with its northern neighbour, the Highlands. The two nations were political rivals, with contesting border claims and differing opinions leading to disputes. The relationship between the two states worsened after the transition to the Mercantile Republic and withdrawal from the UEG. The Mercantile Republic became more belligerent, leading to border skirmishes and fears of an invasion.

The Mercantile Republic's most important ally is the EBSIS, which has become a key trade partner. It also maintains trade relationships with other non-UEG states such as the Ethiopian Freeholds, serving as a major arms supplier to them.