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NEGOTIATION STRATEGY MEMO word count 1 ,228TO : Willy de Clercq , Ambassador to the ECFROM : Vanden Abeele , Belgian Representative in the Directorate GeneralDATE : 5 December , 1986THE PROBLEMThe latest negotiation on cracking act up involves the littleening of subsidies for sale of EC grain products overseas . This action is taken to protect the community preference model of pate and as well to appease the American mete pop interests . This proposal was necessitated by the entree of Spain and Portugal into the EC and restrictions into these markets for US grain products p OUR GOALSTo encroachment the scotch and political unity of the European CommunityTo preserve the tool of CAP for maintaining agriculture within the ECTo maintain good stinting transaction with the fall in invokes , and to prevent a trade warD IAGNOSIS OF THE SITUATIONThe outstanding issues straightaway includeDoes the GATT entitle the joined States to empyrean-specific compensation when a third ships company trade agreement affects the trade ease ? The joined State claims that GATT is sector specific , while the EC claims GATT is over the absolute balance of tradeCAP has been under close interrogative , particularly the portions which support exports in to effectively sell surpluses . The fall in States claims that this practice is an below the belt trade agreement , and the EC has found this practice is graceful more expensive as domestic production increasesThe linked States claims that the annual loss from the gain of Spain into the EC for the grains sector is four hundred cardinal . The EC claims that this amount forget be equilibrize in industrial argonas where the tariffs are lower .

The join States claims that the sector specific impact is greater than what can be do up in different sectors , and doubts that the US will go out the benefits promised by the EC , as Germany and other EC members will put away receive preferential treatment for industrial supplies to Spain and PortugalThe United States is proposing an effectuation of tariffs on many French products including cognac , brandy , and cheese in to recapture the estimated loss from grains . The amount the United States estimates to be loosing is cd million annually . Of course , the costs to the US are not only economic and measurable in dollars . The sodbuster s familiarity in America is politically powerful and diligent . In addition the United States is experiencing extreme criticism of its trade policies , as many sectors are blaming the United State s of allowing more goods in than what the United States is able to export . One of these export areas is with leaven grains . Since the EC subsidizes farm exports the price of EC goods is much less to other nations around the world effectively pricing the United States out of this market . A resolution that addresses this inequality would take great value for the United States internallyThe EC stands to loose financially if the United States implements the tariffs they are discussing . With the accession of Spain and Portugal the EC does not acquit an economic...If you emergency to get a full essay, order it on our website: OrderEssay.net

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