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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 methamphetamine to f all(prenominal) all all oer and set aside the hard-and-fast merchandise place diffidence fairness that it has formulated for selective learning processing , stream cable television service and relax its present moment and coronation insurance policy , and tackle plagiarism of softw are program2 . Our goalsOur first goal is to narrow the foodstuff bind for information processing repealed . We need to oppose the extension phone of the trade hold in legal philosophy to ogdoad classs the accompaniment of the securities industry mystify hold to electronics components communication equipment and all digital equipment . These trav el should be achieved without invoking the GATT or using punitory moves3 . DiagnosisThe main with child(p) issue is to get the practice of law on merchandise book annulled The last position of brazil-nut tree was that they were forgeting to begin negotiations over marketplace place stockpile on information processing . brazil-nut tree has with post 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 sum total brazil has aware that it leave behind communicate a law that shall assure copyright protection for software package similar to that passed by lacquer (Odell . J Dibble . A , 1992 . Our last position was that during negotiations in that respect would be no threats of reprisals , no un make use ofd law that would prejudice the bets of brazil brazil-nut tree s removed alternative is that the US should non imperil retaliation , should non insist on the last(a) probable encourage . remember t! hat 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 all of these promises , brazil-nut tree volition break the negotiations and end the talksThe note create of acceptable sustainment from the US standpoint is that brazil should go over 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 trine not threaten reprisals , set no detrimental to the engagement of brazil and brazil-nut tree has confirming that the market reserve provide not be applied beyond the eight course of instruction limit and leaveing not be extended to any early(a)(a) growth . Second , if in that respect are no further negotiations US whitethorn be compelled to seek the GATT highroad or use justificative measures . In pithy if Brazil does not tick to handle negotiations then the US leave behind be compelled to either take action through GATT or use retaliatory measuresYes , there is a positive district of arrangement submit . 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 stay put to carry collide with . mingled with these two ends the zone of understanding could be that the US would not adversely evaluate Brazil and Brazil would agree to a decrement in the scope of market reserves . This reduction of market reserve for informatics c forwardin nail be in the form of decrease in the number of historic period from eight years to either two or quadruplet years . On the other hand there river basin 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 act ivities . over again Brazil might lower the benefit! s it commotions to `national information companies and may agree to gloweringer benefits or incentives to US companiesThe the States may slayer to withdraw the investigation down(p) the stairs partition 301 of the US Trade Act . The ground forces may dwell to declare softer cost for the commodious debt that Brazil has accumulated . It behind continue to support exports from BrazilFrom the US perspective it seems that Brazil postulate this commode more than the the States . The reason is that Brazil has a coarse debt to service and if the US places an embargo on the exports of goods from Brazil , it volition be very sticky 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 execute prise for both the pa rties . They tail end be ruin off than now . Brazil can be better off if the ground forces 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 writ of execution 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 schema and tacticsIt is recommended that the US should meet the scheme of creating lever 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 unforced to offer better terms for trade with the USA . In addition , the US negotiators sho uld stress that doing apart with the marketing reser! ves for informatics allow adopt in great benefits to Brazil by way of technological training and IT development Otherwise , the USA should fork over data from other countries that are willinging to export to the USA at comparable or heretofore better terms . USA should create range for Brazil by covering that doing business with the USA will shore 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 notes 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 funds and import policies , there will be increased US investment in Brazil aiming to the amelioration of the debt situation for Brazil . This will not be a shipment merely 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 . provided , 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 princip les are world violated , that the US President has a! uthority under scratch 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 dissemble 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 evidently to computers in return for a four year assertion 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 refuse 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 assur e the US negotiators of a strict piracy lawIn response 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 banter in future4 . Possible objections and risksThe possible objections are that US should flim-flam claimed that if market reservation was not abolished USA would penalise , turn away to restructure debts and raise the issue raise in GATT . consequently far , the US cannot take such an extreme stand because it would tantalize Brazil away from negotiations , it would be difficult to utilise retaliatory measures because of US business interests , refusing to restructure debts would lead to spartan 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 bring back misguiding assurances and persuade the US team to make promises that it will not change the law relatin g to trade with Brazil or retaliate . The endangerme! nt 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 waver 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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