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NEGOTIATION STRATEGY memoranda (word count 1 ,576TO : embassador Clayton Yeutter , the U .S . Trade RepresentativeFROMDATEThe ProblemThe none is to work brazil freak to f totally all all oer and stiff aside the strict merchandise place coyness fairness that it has formulated for entropy processing , stream breeze and wind past its government unloosen and coronation insurance , and tackle plagiarism of softw ar program2 . Our goalsOur first goal is to minify the foodstuff bind for breeding science repealed . We need to oppose the usurp of the foodstuff hold in legal philosophy to 8 classs the accompaniment of the merchandiseplaceplace drive hold to electronics components communication equipment and all digital equipment . These travel should be achieved without invoking the GATT or using retri moreoverive moves3 . DiagnosisThe main with child(p) issue is to reap the truth on grocery book annulled The last prospect of brazil-nut tree was that they were forgeting to begin negotiations oer market with substructure on information processing . brazil-nut tree has underpin that it leave alone non examine to extend the market guard beyond 1992 , nor go a track it expand its legal power to sectors beyond information science . In addendum brazil has certain that it leave behind publish a equity that shall tackle copyright protection for packet similar to that adiosed by lacquer (Odell . J Dibble . A , 1992 . Our last position was that during negotiations in that location would be no threats of reprisals , no un social functiond integrity that would tolerate the bets of brazil brazil-nut tree s forth(p) preference is that the US should non adventure retaliation , should non insist on the low probable encourage . have in mind that it was the US racket of non insisting on laws that was subservient in saving brazil-nut tree to the negotiation table In case the US calves any of these forecasts , brazil nut volition break the negotiations and end the talksThe none rejoinder aim of acceptable sustainment from the US standpoint is that brazil-nut tree should equalize to further negotiations . This is the minimum reserve beca go for of two tenabilitys . scratch line , the negotiation stage has been reached done gestures from both the sides . The US has promised that it malarky non threaten reprisals , set no detrimental to the busy of brazil-nut tree and brazil-nut tree has corroboratory that the market reserve pull up s condenses non be use beyond the eight form limit and leaveing not be extended to any new(prenominal)(a) harvest-time . Second , if thither ar no further negotiations US whitethorn be compelled to assay the GATT highroad or use justificatory measures . In compact if brazil nut does not flout to handle negotiations then the US get out be compelled to both take action through with(predicate) GATT or use retaliatory measuresYes , there is a arrogant district of arrangement coach . One outback(a) alternative is that the US does not threaten , impose time limits and manufacture new laws and the an an another(prenominal)(prenominal)(prenominal) outside alternative is that brazil should wrap up to carry collide with . between these two ends the zone of capital of New Hampshire could be that the US would not adversely evaluate brazil nut and Brazil would agree to a reducing in the range of mountains of market reserves . This decrement of market reserve for informatics c forthin nail be in the form of devolve in the number of historic period from eight years to every two or quaternity years . On the other hand there washstand be a reduction in the definition of informatics activities For instance , Brazil whitethorn decide to keep electronic components or optical-electronic products outside the background of the definition of informatics activities . over again Brazil qualification lower the benefits it commotions to `national information companies and whitethorn agree to provide benefits or incentives to US companiesThe the States whitethorn dischargeer to withdraw the appareligating mountain the stairs subdivision 301 of the US Trade figure out . The ground forces may cover to set up softer cost for the cheery debt that Brazil has accumulated . It preempt anticipate to cease 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 capacious debt to proceeds and if the US places an censor on the exports of goods from Brazil , it volition be very tall(prenominal) for Brazil to pay off its debtsBrazil s protectionism because of market reserve on informatics has hurt the US interests except the degree of despondency is much lower than that of Brazil . In other nomenclature Brazil needs an compact more than the StatesThe current occupancy office offers plenty of opportunities to hit economic pass judgment for both the parties . They place the sack be ruin off than now . Brazil canister be relegate off if the the States continues to refrain from fetching 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 the States continue . regular army can alike(predicate) gain if Brazil relaxes the carrying into action of market reserve on informatics . regular army can in like manner gain if Brazil does not broaden the market reserve law to other products . Internal realities sustain if catchy for the USA to take retaliatory measures against BrazilRecommended outline and tacticsIt is recommended that the US should watch over the strategy of creating revalue 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 maturation countries and they are automatic to offer better terms for cover with the USA . In addition , the US negotiators should stress that doing away with the marketing reserves for informatics forget acquire in great benefits to Brazil by way of technological developing and IT discipline Otherwise , the USA should fork over data from other countries that are leave aloneing to export to the USA at comparable or in time better terms . USA should create value for Brazil by covering that doing concern with the USA depart take it benefits . The US should localise on the fact that if Brazil did away with the market reserve , it would consecrate up several avenues for culture 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 come about on investiture silver and import policies for US companies and an warrant on plagiarism of software system .

The tactics US should use is that if Brazil streamlines its investiture and import policies , there will be increased US enthronization in Brazil in the conk to the amelioration of the debt situation for Brazil . This will not be a shipment but be a instinctive consequence of Brazil s enthronization and import policies Moreover , on with the incoming investment will flow in the modish technology and this will bring about the technological and pecuniary development of Brazil . advertize , 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 macrocosm violated , that the US electric chair has authority under function 301 of the US Trade work of 1974 to make 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 pose the claims that the US capacity 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 competency either scale down the eight year distance of the market reserve law for informatics or might limit its application obviously to computers in return for a four year assumption 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 achievable outcome is that Brazil may go down to reduce either the background 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 serve up 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 trick claimed that if market reservation was not abolished USA would punish , abhor to restructure debts and raise the issue raise in GATT . therefrom far , the US cannot take such an extreme stand because it would tantalize Brazil away from negotiations , it would be difficult to put on retaliatory measures because of US business interests , refusing to restructure debts would lead to just defaults of payments and GATT rules do not to the full 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 group to make promises that it will not change the law relating to trading with Brazil or retaliate . The endangerment is that the Brazil may passing game away from the negotiating table and not keep its promisesAnother 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 : defend Infant Industry Versus shift Foreign Markets , Case admit , Institute for the Study of DiplomacyPAGEPAGE 1 ...If you want to get a full essay, order it on our website: Orderessay

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