International Negotiation : Theory &Practice Tran Thi Xuan Anh 082SIS40 INTERNATIONAL NEGOTIATIONS STRATEGY

Content TheoryPractice Best alternative to negotiated agreement(BATNA) “Seven element” Zone of potential agreement(ZOPA) SMART(specific, measureable, achievable, realistic, time- frame) Complexities of multilateral international negotiations(process management, modality, decision rules) Case studies - Airbus airlines -Six Party Talks

Primary questions of negotiations When to agree and when to disagree on the draft text on the table? How to create the maximum joint gain at the negotiations? How to draft an effective final agreement?

Theory of International Negotiation Strategy FRAME WORK Representatives come to negotiating table because the principals have conflicts on issues. Negotiations take place since people want to resolve their conflict in a peaceful manner Negotiation is the product of deliberate choice of both side lead to recognition of another important basic fact.

Theory of International Negotiation Strategy BATNA Best Alternative To a Negotiated Agreement ( Fisher and Ury, 1981) Outcome superior to their BATNA

Theory of International Negotiation Strategy BATNA CooperationCompetition

Theory of International Negotiation Strategy BATNA CooperationCompetitionBenefits

Theory of International Negotiation Strategy BATNA ABAB S(A)+S(B) S(A) S(B) V ≤ V ≥ D(A) ≥ D(B)

Practice of International Negotiation Strategy BATNA Relationships matter in international negotiations. Relationships should be preserved no matter what. US & China diplomatic relationship

Theory of International Negotiation Strategy “Seven elements” 1. BATNAINTERESTSOPTIONSCOMMUNICATIONCOMMITMENTSCRITERIARELATIONSHIP

Theory of International Negotiation Strategy “Seven elements” Without effective two way communication, negotiators would have limited knowledge about other side’s concern, interests and preference on the negotiating agenda.

Theory of International Negotiation Strategy “Seven elements”

Theory of International Negotiation Strategy “Seven elements” Singapore Airlines cases Why do you stick to this particular price? What leads you to believe the price you ask is a reasonable price ? Is there any other way to meet your needs other than price? InterestCriteriaOptions

Practice of International Negotiation Strategy “ Take it or leave it “ method Use when you believe that you has the upper hand in the negotiations. Singapore airlines negotiator tries to clarify the interests behind position, but airbus negotiator may not respond to questions.

Practice of International Negotiation Strategy “ I cut and you choose “ Commonly technique at international negotiations Ensure the fair and impartial criteria If negotiations are successful, commitment should be used

Theory of International Negotiation Strategy Final agreement guideline SMART The final agreement signed by negotiators cannot be effective unless it gets ratification Implementation stage should be kicked in through dispute. The final agreement should be as specific as possible, should set an unambiguous standard for implementation and drafted along measurable indicators. SMART( specific, measurable, achievable, realistic, time-frame) standards.

Multilateral International Negotiations N- party negotiation is called multilateral negotiation. Many different views Key role of chair Examples United Nation, WTO, IMF…

DECISION -MAKING No answer for how to make the best decision. Open the floor for discussion on the proposal and check whether there is any outspoken to the proposal Cairns Groups G-77

Case study International Subsidy Agreement Sharply divided into two group Increase competitiveness through R&D Develop logic through attack farm subsidies GOOD Distorted international trade flows by giving local companies or industries an artificial advantage “illustrative” BAD

Case study Six-party talk commitment S.Korea USAJapan N.Korea China Russia