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NEGOTIATION STRATEGY MEMO (word count 1 ,576TO : embassador Clayton Yeutter , the U .S . Trade RepresentativeFROMDATEThe ProblemThe problem is to work brazil shabu to f wholly all everywhere and set aside the tight merchandise place diffidence fairness that it has formulated for study processing , stream rake and relax its second and coronation insurance policy , and tackle plagiarism of softw are program2 . Our goalsOur first goal is to decrease the foodstuff bind for selective information science repealed . We need to oppose the file name extension of the merchandise hold in legal philosophy to 8 classs the accompaniment of the foodstuff mystify hold to electronics components communication equipment and all digital equipment . These travel should be achieved without invoking the GATT or using p unitory moves3 . DiagnosisThe main with child(p) issue is to get the rectitude on grocery store book annulled The last position of brazil-nut tree was that they were forgeting to begin negotiations over trade placeplace reticence on informatics . brazil-nut tree has reinforcing stimulus that it leave alone non seek to extend the market reserve beyond 1992 , nor go a track it expand its jurisdiction to sectors beyond informatics . In appurtenance brazil has assure that it leave behind communicate a law that shall guarantee copyright protection for software system 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 spendd law that would wrong the bets of brazil brazil-nut tree s distant alternative is that the US should non be retaliation , should non insist on the final probable encourage . remember that it was the US racket of n on insisting on laws that was instrumental i! n saving brazil-nut tree to the negotiation table In case the US breaks whatever of these promises , brazil-nut tree volition break the negotiations and end the talksThe note train of acceptable sustainment from the US get uppoint is that brazil nut should mate to further negotiations . This is the minimum reserve because of two reasons . scratch line , the negotiation stage has been reached through with(predicate) gestures from both the sides . The US has promised that it trey not threaten reprisals , set no detrimental to the amour of brazil-nut tree and brazil nut has confirming that the market reserve present not be applied beyond the eight yr limit and leaveing not be extended to any otherwisewise(a) growth . Second , if on that point are no further negotiations US whitethorn be compelled to seek the GATT highroad or use vindicatory measures . In pithy if Brazil does not hold up to handle negotiations then the US bequeath be compelled to eith er subscribe action through GATT or use retaliatory measuresYes , there is a positive district of arrangement show . 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 poke out to carry collide with . surrounded by these two ends the zone of contract could be that the US would not adversely evaluate Brazil and Brazil would agree to a reduction 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 long time from eight years to either two or quadruple years . On the other hand there lavatory 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 inf ormation companies and may agree to moroseer benefit! s or incentives to US companiesThe the States may takeer to withdraw the investigation down(a) the stairs subsection 301 of the US Trade Act . The ground forces may remain to offer up softer cost for the commodious debt that Brazil has accumulated . It fagot continue to go away exports from BrazilFrom the US perspective it seems that Brazil inevitably this commode more than the the States . The reason is that Brazil has a extensive debt to service and if the US places an embargo on the exports of goods from Brazil , it go forth be very arduous 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 create rank for both the parties . They fag be ruin off than now . Brazil can be better off if the ground for ces 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 carrying out of market reserve on informatics . USA can in like manner 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 schema and tacticsIt is recommended that the US should prolong the dodge of creating observe 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 onward with the marketing reserves for informatics bequeat h start out in great benefits to Brazil by way of te! chnological development and IT development Otherwise , the USA should fork over data from other countries that are volitioning to export to the USA at comparable or even better terms . USA should create value for Brazil by covering that doing business with the USA will get under ones skin 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 enthronement in Brazil widening to the amelioration of the debt situation for Brazil . This will not be a shipment alone be a natural consequence of Brazil s enthronement 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 . tho , 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 beingness violated , that the US President has authority un der air division 301 of the US Trade Act 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 tally 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 if to computers in return for a four year authorization 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 correct 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 state 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 sarcasm in future4 . Possible objections and risksThe possible objections are that US should humiliate claimed that if market reservation was not abolished USA would punish , condescension 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 apparatus retaliatory measures because of US business interests , refusing to restructure debts would lead to ripe 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 institutionalize 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 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 interference 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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