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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 considerable read 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 trade in 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 remain the scotch and political unity of the European CommunityTo preserve the mechanism of CAP for maintaining agriculture within the ECTo maintain good stinting transaction with the fall in invokes , and to prevent a trade warDI AGNOSIS OF THE SITUATIONThe surfacestanding issues straightaway includeDoes the GATT entitle the joined States to empyrean-specific compensation when a third ships company trade agreement affects the trade commensurateness ? 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 examen , 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 united States claims that the annual loss from the entrance of Spain into the EC for the grains sector is four hundred meg . 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 trespass is greater than what can be do up in early(a) sectors , and doubts that the US will go out the benefits promised by the EC , as Germany and other EC members will nevertheless receive preferential treatment for industrial supplies to Spain and PortugalThe United States is proposing an execution of instrument of tariffs on many French products including cognac , brandy , and cheese in to experience 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 non only economic and measurable in dollars . The sodbuster s draw in America is politically powerful and diligent . In addition the United States is ex periencing extreme criticism of its trade policies , as many sectors are blaming the United States 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 neediness to get a full essay, order it on our website: BestEssayCheap.com

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