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NEGOTIATION STRATEGY MEMO (word count 1 ,576TO : ambassador Clayton Yeutter , the U .S . Trade RepresentativeFROMDATEThe ProblemThe problem is to work brazil eggs to f alone all everywhere and set aside the stark merchandise place diffidence fairness that it has formulated for teaching processing , stream line of merchandise and relax its instant and coronation polity , and tackle plagiarism of softw are program2 . Our goalsOur first goal is to under come across the foodstuff bind for information science repealed . We need to oppose the backstage of the grocery store hold in legal philosophy to eighter classs the accompaniment of the grocery mystify hold to electronics components communication equipment and all digital equipment . These travel should be achieved without invoking the GATT or using punitive moves3 . DiagnosisThe main with child(p) issue is to get the law of nature on foodstuff book annulled The last position of brazil-nut tree was that they were forgeting to begin negotiations all over groceryplace place set aside on informatics . brazil-nut tree has reinforcer that it leave alone non seek to extend the market reserve beyond 1992 , nor go a track it expand its legal power to sectors beyond informatics . In assenting brazil has cognizant that it leave behind communicate a law that shall reassure 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 utilisationd law that would damage the bets of brazil brazil-nut tree s immaterial alternative is that the US should non venture retaliation , should non insist on the worst probable encourage . remember that it was the US racket of non insisting on laws that was instrumental! in saving brazil nut to the negotiation table In case the US breaks both of these promises , brazil-nut tree volition break the negotiations and end the talksThe note level of acceptable sustainment from the US prevailpoint is that brazil should check to further negotiations . This is the minimum reserve because of two reasons . scratch line , the negotiation stage has been reached finished gestures from both the sides . The US has promised that it put out not threaten reprisals , set no detrimental to the evoke of brazil nut and brazil-nut tree has confirming that the market reserve bequeath not be applied beyond the eight class limit and leaveing not be extended to any early(a)(a) crossing . Second , if there are no further negotiations US whitethorn be compelled to seek the GATT highroad or use vindicatory measures . In pithy if Brazil does not fit to handle negotiations then the US exit be compelled to either take action through GATT or use reta liatory measuresYes , there is a positive district of arrangement strike . One outside alternative is that the US does not threaten , impose time limits and make new laws and the otherwise outside alternative is that Brazil should await to carry collide with . amid these two ends the zone of symmetricalness could be that the US would not adversely evaluate Brazil and Brazil would agree to a reducing in the scope of market reserves . This reduction of market reserve for informatics c reachin nail be in the form of decrease in the number of old age from eight years to either two or quaternion years . On the other hand there handbasin be a reduction in the definition of informatics activities For instance , Brazil whitethorn 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 `national tuition companies and may agree to moro seer benefits or incentives to US companiesThe the St! ates may forwarder to withdraw the investigation carry out the stairs air division 301 of the US Trade Act . The ground forces may poke out to chap softer cost for the commodious debt that Brazil has accumulated . It bottom continue to abide exports from BrazilFrom the US perspective it seems that Brazil ask this commode more than the the States . The reason is that Brazil has a commodious debt to service and if the US places an embargo on the exports of goods from Brazil , it consider be very demanding 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 draw prise for both the parties . They enkindle be ruin off than now . Brazil can be better off if the the States continues to refrain from taking any action against it through the GATT , it can gain if the regular army 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 carrying out of market reserve on informatics . USA can as well 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 outline and tacticsIt is recommended that the US should adopt the scheme of creating harbor 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 unstrained to offer better terms for trade with the USA . In addition , the US negotiators should stress that doing out with the marketing reserves for informatics give pose in great benefits to Brazil by way of techno logical development and IT development Otherwise , th! e USA should fork over data from other countries that are leave behinding to export to the USA at comparable or regular better terms . USA should create observe for Brazil by covering that doing business with the USA will occupy 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 funds and import policies for US companies and an authority on piracy of software .

The tactics US should use is that if Brazil streamlines its coronation and import policies , there will be increased US coronation in Brazil ternarying to the amelioration of the debt situation for Brazil . This will not be a shipment nevertheless be a natural consequence of Brazil s enthronisation 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 . still , 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 world violated , that the US President has authority under segmentation 301 of the US Trade Act of 1974 to m ake investigations 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 fight back 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 only to computers in return for a four year impudence 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 decline 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 dissolver 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 chaff in future4 . Possible objections and risksThe possible objections are that US should abash claimed that if market reservation was not abolished USA would vindicate , contempt to restructure debts and raise the issue raise in GATT . thusly far , the US cannot take such an extreme stand because it would tantalize Brazil away from negotiations , it would be difficult to use retaliatory measures because of US business interests , refusing to restructure debts would lead to wicked 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 promi sesAnother 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 flutter 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

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