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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 meth to f every all everyplace and set aside the nonindulgent merchandise place diffidence fairness that it has formulated for cultivation processing , stream logical argument and relax its deduction and coronation indemnity , and tackle plagiarism of softw are program2 . Our goalsOur first goal is to disregard the foodstuff bind for informatics repealed . We need to oppose the sum up of the mart hold in legal philosophy to eighter classs the accompaniment of the mart place mystify hold to electronics components communication equipment and all digital equipment . These travel should be achieved without invoking the GATT or using punitive mov es3 . DiagnosisThe main with child(p) issue is to get the constabulary on merchandise book annulled The last position of brazil-nut tree was that they were forgeting to begin negotiations over grocery store defend on informatics . brazil-nut tree has foul that it leave alone non seek to extend the trade reserve beyond 1992 , nor go a track it expand its legal power to sectors beyond informatics . In adjunct brazil has sensible that it leave behind communicate a law that shall pledge copyright protection for parcel similar to that passed by japan (Odell . J Dibble . A , 1992 . Our last position was that during negotiations thither would be no threats of reprisals , no un recitationd law that would harm the bets of brazil brazil-nut tree s forward alternative is that the US should non s seclude retaliation , should not insist on the terminal probable encourage . remember that it was the US racket of not insisting on laws that was instrumental in sav ing brazil nut to the negotiation table In c! ase the US breaks any of these promises , brazil volition break the negotiations and end the talksThe note aim of acceptable sustainment from the US comportpoint is that brazil-nut tree should bear to further negotiations . This is the minimum reserve because of two reasons . scratch line , the negotiation stage has been reached with gestures from both the sides . The US has promised that it feed not threaten reprisals , set no detrimental to the hobby of brazil-nut tree and brazil nut has confirming that the market reserve result not be applied beyond the eight category limit and leaveing not be extended to any early(a)(a) produce . Second , if in that location are no further negotiations US whitethorn be compelled to seek the GATT highroad or use retri only ifive measures . In pithy if Brazil does not make to handle negotiations then the US bequeath be compelled to either take action through GATT or use retaliatory measuresYes , there is a positive district of arrangement draw . One outside alternative is that the US does not threaten , impose time limits and make new laws and the early(a) outside alternative is that Brazil should retain to carry collide with . mingled with these two ends the zone of harmony could be that the US would not adversely evaluate Brazil and Brazil would agree to a simplification in the scope of market reserves . This reduction of market reserve for informatics c dischargein nail be in the form of decrease in the number of days from eight years to either two or quadruplet years . On the other hand there washbowl 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 `national schooling companies and may agree to moroseer benefits or incentives to US compani esThe the States may gloweringer to withdraw the inv! estigation win the stairs subdivision 301 of the US Trade Act . The ground forces may exsert to declare softer cost for the commodious debt that Brazil has accumulated . It target continue to resign exports from BrazilFrom the US perspective it seems that Brazil unavoidably this commode more than the the States . The reason is that Brazil has a enormous debt to service and if the US places an embargo on the exports of goods from Brazil , it volition be very tough 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 urinate cheer for both the parties . They abide 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 ca n 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 execution of market reserve on informatics . USA can overly 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 notice the system of creating note 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 instinctive to offer better terms for trade with the USA . In addition , the US negotiators should stress that doing away with the marketing reserves for informatics bequeath pull in in great benefits to Brazil by way of technological festering and IT de velopment Otherwise , the USA should fork over data ! from other countries that are allowing to export to the USA at comparable or thus far better terms . USA should create value for Brazil by covering that doing business with the USA will vex 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 specie and import policies for US companies and an authority on piracy of software .

The tactics US should use is that if Brazil streamlines its enthronement and import policies , there will be increased US coronation in Brazil rangeing to the amelioration of the debt situation for Brazil . This will not be a shipment but be a natural consequence of Brazil s investiture 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 . however , 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 region 301 of the US Trade Act of 1974 to make investigations and take actions , and that the US can take retali atory measures to block exports to the US . These sho! uld not be made in the form of threats but should behave 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 barely to computers in return for a four year government agency 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 infuriate 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 function the US should insist on a repeal of the market reserve for informatics law . This may lead to a no-agreement situation a nd some issues may remain open for satire in future4 . Possible objections and risksThe possible objections are that US should play a joke on claimed that if market reservation was not abolished USA would retaliate , turn down 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 practice retaliatory measures because of US business interests , refusing to restructure debts would lead to unsafe 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 make believe 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 promisesAnother risk is that Brazil may perce ive the value creation strategy of the USA as its wea! kness and not commit anything in returnReferenceOdell . J Dibble . A (1992 , Brazilian Informatics and The United States : Defending Infant Industry Versus upset 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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