U.S. Trade Pact

Posted: October 17th, 2013

U.S. Trade Pact

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U.S. Trade Pact

The United State of America, all the 27 states in the European Union and a combination of other first world and third world states have been contemplating the proposal of initiating negotiations on an International Services Agreement for about a year. Newly emerged states like Brazil, Russia, India, and China have avoided the talks. Their arguments revolve around the idea that the services negotiations should be considered a bigger debate that incorporated manufacturing and agriculture trade obstacles. The Doha World Trade talks that began in 2001 included all three aspects that remained desperately deadlocked. This displeasure with the Doha talks prompted the United States to investigate other options.

Sentiments by Ron Kirk, the U.S. Trade Representative, reiterated that over a billion dollars in America supports over 4,300 individuals. The U.S. was therefore planning to resume service talks with different countries. If the service deals were completed, it would earn the country over $80,000 annually. Services are essential to America in that the services industry accounted for over 80% of the employment in the U.S. America is also the world’s largest services exporter, having international sales to the tune of $1.5 trillion annually, roughly equal to 10.5% of U.S. GDP.

Though these numbers were impressive, the international services markets continued to be deeply controlled and U.S. service suppliers encounter a broad range of obstacles in conducting business in foreign markets. These sentiments were echoed by Mike Ducker who was the CEO of FedEx Express that dealt with the worldwide operations. On the domestic front, superior congressional representatives also embraced the start of talks. When the global economy transformed, services exports such as transportation and tourism became an important aspect of the trade topics to create employment and fortify the economy in the U.S.

Globalization eradicates the restrictions between states and offers new opportunities for doing business. Globalization evolved to become part of the everyday life. On a daily basis, people experience the diverse results of globalization. People make calls to each other, use mobile phones and satellite TV from other states, and browse the Internet to discover new information. Using this method, the impact of globalization is massive enough for every aspect of life to acknowledge. Obviously, the globalization process also affects business issues. Negotiations and deals make up one of the main matters in business.

Every corporation is faced with a variety of situations when it comes to negotiating issues with the different parties in order to reach an agreement. Currently, globalization has enabled companies to easily link up with other partners and discuss different matters as if they were in one building with the help of technology such as videoconferencing. This advancement in technology is more superior to the normal telephone conversation and telegraph. Despite the advancement in globalization, many firms involved in global business with a small section of the transactions being done on paper.

However, many firms would negotiate and close a contract via the internet or mobile phone when the relationship between the two parties becomes very secure and reliable. Another effect of globalization emerges in the way partners exchange documentation. Currently, companies can share important documentation through the internet and e-mail, and this significantly hastens the payment process and organization of a contract. It is intriguing to note that the negotiating process is different for each country. This diversity reflects the various cultural dimensions, attitudes, and conduct. Because of globalization, business people have adjusted to their partners and developed universal tendencies for negotiation. Different states have adopted precise terms and approaches of negotiation from other customs. Furthermore, there are many unique training negotiation courses for people and companies on the internet that assists people to discover and improve on their negotiation abilities. For example, people from Sweden can obtain courses on cooperation from Negotiations Training Institute of America (NTIA), and they can enroll in the learning classes via the internet (Palmer, 2013).

It is extremely difficult to be an excellent negotiator, whereas the negotiation process is highly complicated. The definition from most academic websites describes negotiation as a discussion with the purpose of resolving disputes, to reach an agreement on the best course of action, to reach a consensus for personal or group advantage, or to develop results to satisfy a variety of interests. The negotiation process is also a method of expressing a company’s own perspective and views in business circles and everyday life. People need to understand the best way to enrich the dialogue between diverse cultures and make it more dynamic and inspiring. Globalization offers numerous opportunities yet many obstacles for people to interact peacefully and abundantly with each other. The technology of videoconferencing is a perfect case in point of how people can proceed with negotiation in an open-minded and responsive atmosphere.

In conclusion, negotiations can evolve to be an intricate process that can affect the lifestyles of many people and influence even more individuals when conducted on a global scale. Many firms and governments bargain with each other to come to agreements that are equally advantageous to both parties. People with different demands convene and engage in negotiations to reach a conclusion. People from different cultures may engage in a negotiation process and end up having different understanding of the issues because they reason differently. The principle behind a negotiation is to come to an agreement or resolve a present predicament. A negotiation allows all the parties implicated in the issue of negotiation the chance to express their opinions and apprehension about the debate.

References

Palmer. D. (2013). U.S. says to negotiate services trade pact with EU, Japan, others. Reuters. Retrieved from http://www.reuters.com/article/2013/01/15/us-usa-trade-services-idUSBRE90E0TI20130115