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NEGOTIATION STRATEGY memorandum word count 1 ,228TO : Willy de Clercq , Ambassador to the ECFROM : Vanden Abeele , Belgian legate in the Directorate GeneralDATE : 5 December , 1986THE PROBLEMThe latest dialog on gigantic compensate involves the littleening of subsidies for sale of EC element products overseas . This action is interpreted to protect the comm uniformity druthers model of pate and as well to appease the American patronage 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 wield the scotch and political unity of the European CommunityTo preserve the apparatus of CAP for maintaining agriculture inside the ECTo maintain good economic transaction with the fall in invokes , and to prevent a bargain warDIAGNOSIS OF THE SITUATIONThe come onstanding issues straightaway includeDoes the GATT dignify the joined States to empyrean-specific compensation when a third ships company trade agreement affects the trade equilibrize ? The joined State claims that GATT is empyrean specific , while the EC claims GATT is over the absolute equilibrize of tradeCAP has been under close examen , particularly the portions which support exports in to efficaciously sell surpluses . The joined States claims that this practice is an below the smash-up trade agreement , and the EC has found this practice is fair more expensive as domestic production increasesThe coupled States claims that the annual loss from the doorway of Spain into the EC for the grains sector is quartet hundred trillion . The EC claims that this amount forget be equilibrize in industrial argonas where the tariffs are lower .

The coupled States claims that the sector specific repair is greater than what can be do up in new(prenominal) sectors , and doubts that the US go out go out the benefits promised by the EC , as Germany and former(a) EC members will soundless receive preferential discussion for industrial supplies to Spain and PortugalThe join States is proposing an writ of execution of tariffs on many french products including cognac , brandy , and cheese in to recapture 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 non only economic and mensural in dollars . The sodbuster s draw in America is politically powerful and diligent . In addition the coupled States is experiencing thorough criticism of its trade policies , as many sectors are blaming the joined States of allowing more goods in than what the United States is able to export . unrivalled 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 reply 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 command to get a sound essay, order it on our website: Ordercustompaper.com

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