Joseph Massey Trade Negotiating : Notes for Zoom Lecture Fulbright University 8.7.21 General principles Goal : not to get to yes but to secure your objective Be able and prepared to walk[r]
Trang 1Prof Joseph Massey
Trade Negotiating : Notes for Zoom Lecture Fulbright University 8.7.21
General principles
Goal : not to get to yes but to secure your objective
Be able and prepared to walk away: a bad agreement is worse than no
agreement; have a BATNA
Know what opponent can give and what can’t give
Give to get, but better to:
Give less to get more; keep rest for next negotiation, (governments like
businesses have relationships over time)
Give symbols for substance (MFN); not all values are economic
Give later than sooner, get sooner than later (time is money)
No such thing as progress in a negotiation
Everything’s on the table until the whole deal is signed
Everything’s off the table if deal is not sealed or honored
Negotiate from your own draft
Use your own interpreter
Negotiate in your own language
Language is the devil in the details
Specific character of government to government negotiations
Venue: Multilateral (WTO) Plurilateral (TPP) Bilateral
Trade negotiations are always three negotiations in one: seek, get, accept
US Interagency process: white and black hats
Agency views: OMB, Departments of Commerce, Treasury, State, Justice, Labor,etc Industry, Congress and other “externalities”
Role of stakeholders: producers (exporters), consumers, workers, importers the “geopolitical” and domestic political environments
Government to Government US-China trade negotiation specifics
China late to international system: GATT (WTO), IP conventions, others
Developing country exemption from some WTO rules
Values difference: Intellectual Property; “Emperor is Far Away”
Exceptionalism “oldest civilization”; “invented paper, gunpowder,” etc
Formalistic: “equality and mutual benefit”; “hurt the feelings of the Chinese people”
Shame as lever
Using US domestic allies; inept to begin with, better later, not as effective as
Japanese
Japan specific negotiations: 3 fundamental Japanese trade myths
Poverty: “small country with no resources can’t import finished goods”
Quality: “everything we make is better than anything you make”
Lazy foreigner “You don’t learn our language or tailor your goods to us”