Ir250

NEGOTIATION STRATEGY MEMO (word count 1 ,576TO : ambassador Clayton Yeutter , the U .S . Trade RepresentativeFROMDATEThe ProblemThe problem is to work brazil grouch to f every last(predicate) all everywhere and set aside the inflexible merchandise place diffidence fairness that it has formulated for instruction processing , stream aviation and relax its importee and coronation policy , and tackle plagiarism of softw are program2 . Our goalsOur first goal is to under form the foodstuff bind for information processing repealed . We need to oppose the affix of the commercialise hold in legal philosophy to eighter classs the accompaniment of the merchandise mystify hold to electronics components communication equipment and all digital equipment . These travel should be achieved without invoking the GATT o r using punitive moves3 . DiagnosisThe main with child(p) issue is to get the rightfulness on mart book annulled The last position of brazil-nut tree was that they were forgeting to begin negotiations everywhere grocery store have got on informatics . brazil-nut tree has transferer that it leave alone non seek to extend the merchandise reserve beyond 1992 , nor go a track it expand its jurisdiction to sectors beyond informatics . In admittance brazil has insure that it leave behind communicate a law that shall undertake copyright protection for package similar to that passed by lacquer (Odell . J Dibble . A , 1992 . Our last position was that during negotiations at that place would be no threats of reprisals , no un uptaked law that would trouble the bets of brazil brazil-nut tree s alfresco alternative is that the US should non jeopardise retaliation , should non insist on the low probable encourage . remember that it was the US racket of n on insisting on laws that was instrumental i! n saving brazil nut to the negotiation table In case the US breaks some(prenominal) of these promises , brazil nut volition break the negotiations and end the talksThe none level of acceptable sustainment from the US wheelpoint is that brazil nut should obtain to further negotiations . This is the minimum reserve because of two reasons . scratch line , the negotiation stage has been reached done gestures from both the sides . The US has promised that it dedicate-up the ghost non threaten reprisals , set no detrimental to the hobby of brazil-nut tree and brazil has confirming that the food market reserve put out not be applied beyond the eight social class limit and leaveing not be extended to any other(a)(a)(a) ingathering . Second , if in that respect are no further negotiations US whitethorn be compelled to seek the GATT highroad or use vindicatory measures . In pithy if Brazil does not harmonise to handle negotiations then the US leave alone b e compelled to either take action through GATT or use retaliatory measuresYes , there is a positive district of arrangement get up . One outside alternative is that the US does not threaten , impose time limits and make new laws and the other outside alternative is that Brazil should fall out to carry collide with . among these two ends the zone of stipulation could be that the US would not adversely evaluate Brazil and Brazil would agree to a diminution in the scope of market reserves . This reduction of market reserve for informatics c scorein nail be in the form of decrease in the number of age from eight years to either two or quaternity years . On the other hand there bathroom be a reduction in the definition of informatics activities For instance , Brazil may decide to keep electronic components or optical-electronic products outside the scope of the definition of informatics activities . over again Brazil might lower the benefits it commotions to `natio nal knowledge companies and may agree to come toer! benefits or incentives to US companiesThe the States may aver to withdraw the investigation shine the stairs constituent 301 of the US Trade Act . The ground forces may maintain to offer softer cost for the commodious debt that Brazil has accumulated . It fagot continue to throw in the towel exports from BrazilFrom the US perspective it seems that Brazil require this commode more than the the States . The reason is that Brazil has a abundant debt to service and if the US places an embargo on the exports of goods from Brazil , it exit be very troublesome for Brazil to pay off its debtsBrazil s protectionism because of market reserve on informatics has hurt the US interests except the degree of desperation is much lower than that of Brazil . In other words Brazil needs an agreement more than the StatesThe current business office offers plenty of opportunities to establish cherish for both the parties . They screwing be ruin off than now . Brazil can be better o ff if the the States continues to refrain from taking any action against it through the GATT , it can gain if the the States stops the investigation against it and Brazil can be better off if its exports to the USA continue . USA can alike gain if Brazil relaxes the toolation of market reserve on informatics . USA can likewise gain if Brazil does not broaden the market reserve law to other products . Internal realities make if difficult for the USA to take retaliatory measures against BrazilRecommended dodge and tacticsIt is recommended that the US should derive the outline of creating pass judgment for the repealing or watering down of the market reserve law . It may adapt the tactic of influencing aspirations of the Brazilians . The USA should assign that it has contacted other developing countries and they are automatic to offer better terms for trade with the USA . In addition , the US negotiators should stress that doing remote with the marketing reserves for informa tics resulting ingest in great benefits to Brazil ! by way of technological increase and IT development Otherwise , the USA should fork over data from other countries that are willing to export to the USA at comparable or until now better terms . USA should create set for Brazil by covering that doing business with the USA will crop it benefits . The US should localise on the fact that if Brazil did away with the market reserve , it would open up several avenues for development and would make debt armed service easier for Brazil The US should take a position that it is expects pass around on the market reserve issue as a minimum . It should also inform Brazil that it expects progress on investiture gold and import policies for US companies and an authority on piracy of software .

The tactics US should use is that if Brazil streamlines its enthronization and import policies , there will be increased US investiture funds in Brazil leading to the amelioration of the debt situation for Brazil . This will not be a shipment only if be a natural consequence of Brazil s investment and import policies Moreover , along with the incoming investment will flow in the latest technology and this will bring about the technological and financial development of Brazil . supercharge , the improvement in the piracy law will allow the US software firms to invest in Brazil and lead to educational and manpower development for Brazil . In other words there will be meaty value groundwork by the US negotiatorApart from the value origination there should also be a mention that GATT principles are be violated , that the US President has authority under air di vision 301 of the US Trade Act of 1974 to make invest! igations and take actions , and that the US can take retaliatory measures to block exports to the US . These should not be made in the form of threats but should run the claims that the US might make . In short , the strategy of the US should be a combination of creating and claiming valueIf the US follows this strategy , we expect that Brazil might either scale down the eight year duration of the market reserve law for informatics or might limit its application just to computers in return for a four year bureau that the US will not impose retaliatory measures , will not counterchange its law and close its investigation , and will not insist on modification of any other policyThe other possible outcome is that Brazil may turn to reduce either the scope of or the duration of the market reserve but promise a stable investment and import policy for the US companies . In addition , it may assure the US negotiators of a strict piracy lawIn resoluteness the US should insist on a repeal of the market reserve for informatics law . This may lead to a no-agreement situation and some issues may remain open for reciprocation in future4 . Possible objections and risksThe possible objections are that US should dishearten claimed that if market reservation was not abolished USA would retaliate , rule out to restructure debts and raise the issue raise in GATT . thus far , the US cannot take such an extreme stand because it would tantalize Brazil away from negotiations , it would be difficult to implement retaliatory measures because of US business interests , refusing to restructure debts would lead to overserious defaults of payments and GATT rules do not fully support the US standThe risks of the value creation approach of the US is that the Brazilians may simply give misguiding assurances and persuade the US team to make promises that it will not change the law relating to trade with Brazil or retaliate . The endangerment is that the Brazil may walk away from the negotiating table and not keep its prom! isesAnother risk is that Brazil may perceive the value creation strategy of the USA as its weakness and not commit anything in returnReferenceOdell . J Dibble . A (1992 , Brazilian Informatics and The United States : Defending Infant Industry Versus rift Foreign Markets , Case Study , Institute for the Study of DiplomacyPAGEPAGE 1 ...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper