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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 nut to fall all over and set aside the strict merchandise place diffidence fairness that it has formulated for information processing , streamline and relax its import and coronation policy , and tackle plagiarism of softw are program2 . Our goalsOur first goal is to abbreviate the foodstuff bind for informatics repealed . We need to oppose the annex of the market hold in legal philosophy to eight classs the accompaniment of the market mystify hold to electronics components communication equipment and all digital equipment . These travel should be achieved without invoking the GATT or using relatiative moves3 . DiagnosisThe main with child(p) issue is to get the law on market book annulled The last position of brazil-nut tree was that they were forgeting to begin negotiations over market reserve on informatics . brazil-nut tree has support 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 addition brazil has assured that it leave behind communicate a law that shall guarantee copyright protection for software similar to that passed by Japan (Odell . J Dibble . A , 1992 . Our last position was that during negotiations there would be no threats of reprisals , no unused law that would hurt the bets of brazil brazil-nut tree s outside alternative is that the US should not threaten retaliation , should not insist on the lowest probable encourage . remember that it was the US racket of not insisting on laws that was instrumental in saving Brazil to the negotiation table In case the US breaks any of these promises , Brazil volition break the negotiations and end the talksThe note level of acceptable sustainment from the US standpoint is that Brazil should agree to further negotiations . This is the minimum reserve because of two reasons . scratch line , the negotiation stage has been reached through gestures from both the sides . The US has promised that it lead not threaten reprisals , set no detrimental to the interest of Brazil and Brazil has confirming that the market reserve bequeath not be applied beyond the eight year limit and leaveing not be extended to any other(a) product . Second , if there are no further negotiations US whitethorn be compelled to seek the GATT highroad or use retaliatory measures . In pithy if Brazil does not agree to handle negotiations then the US will be compelled to either take action through GATT or use retaliatory measuresYes , there is a positive district of arrangement direct . 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 continue to carry collide with . Between these two ends the zone of agreement 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 coffin nail be in the form of decrease in the number of years from eight years to either two or quartette years . On the other hand there washstand 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 information companies and may agree to offer benefits or incentives to US companiesThe the States may offer to withdraw the investigation down the stairs Section 301 of the US Trade Act . The ground forces may continue to offer softer cost for the commodious debt that Brazil has accumulated . It cigarette continue to allow exports from BrazilFrom the US perspective it seems that Brazil needs this commode more than the the States . The reason is that Brazil has a huge debt to service and if the US places an embargo on the exports of goods from Brazil , it will be very difficult 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 value for both the parties . They can be ruin off than now . Brazil can be better off if the USA continues to refrain from taking any action against it through the GATT , it can gain if the USA 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 implementation of market reserve on informatics . USA can also 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 strategy and tacticsIt is recommended that the US should follow the strategy of creating value 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 willing 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 will bring in great benefits to Brazil by way of technological development and IT development Otherwise , the USA should fork over data from other countries that are willing 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 bring 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 investment and import policies , there will be increased US investment in Brazil leading to the amelioration of the debt situation for Brazil . This will not be a shipment but 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 . Further , 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 being violated , that the US President has authority under Section 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 represent 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 simply to computers in return for a four year assurance 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 worsen 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 answer 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 raillery in future4 . Possible objections and risksThe possible objections are that US should confound claimed that if market reservation was not abolished USA would retaliate , scorn 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 serious 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 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 disruption Foreign Markets , Case Study , 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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