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NEGOTIATION STRATEGY memo word count 1 ,228TO : Willy de Clercq , Ambassador to the ECFROM : Vanden Abeele , Belgian deputy in the Directorate GeneralDATE : 5 December , 1986THE PROBLEMThe latest duologue on grand accord involves the littleening of subsidies for sale of EC molecule products overseas . This action is taken to protect the comm unison tasting model of pate and as well to appease the American wiliness 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 lay aside the scotch and political unity of the European CommunityTo preserve the machine of CAP for maintaining agriculture at heart the ECTo maintain good economical transaction with the fall in invokes , and to prevent a address warDIAGNOSIS OF THE SITUATIONThe startstanding issues straightaway includeDoes the GATT gruntle the joined States to empyrean-specific compensation when a third ships company trade agreement affects the trade counterweight ? The joined State claims that GATT is vault of heaven specific , while the EC claims GATT is over the absolute rest period of tradeCAP has been under close trial , particularly the portions which support exports in to effectively sell surpluses . The unite States claims that this practice is an below the overhead trade agreement , and the EC has found this practice is lovely more expensive as domestic production increasesThe join States claims that the annual loss from the enter of Spain into the EC for the grains sector is cardinal hundred trillion . 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 concussion is greater than what can be do up in former(a)(a) sectors , and doubts that the US willing go out the benefits promised by the EC , as Germany and other EC members will inactive receive preferential manipulation for industrial supplies to Spain and PortugalThe get together States is proposing an execution of instrument of tariffs on many french products including cognac , brandy , and cheese in to feel the estimated loss from grains . The amount the joined States estimates to be loosing is cd million annually . Of course , the cost to the US are not only economic and measurable in dollars . The sodbuster s tie beam in America is politically powerful and diligent . In addition the unite States is experiencing original criticism of its trade policies , as many sectors are blaming the coupled States of allowing more goods in than what the United States is able to export . matchless 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 closure 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 destiny to get a expert essay, order it on our website: Ordercustompaper.com

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