Negotiating Trade Agreements

In negotiating trade agreements, it’s important to keep in mind that our partners have their own domestic politics. Just watch what’s going on India now with farmer protests. That’s why it’s important to do things like provide product exclusions or long tariff staging for sensitive products, or live to fight an issue for another day (To be clear, US negotiators employed these strategies in certain cases in the India deal) Importantly, it also means that the deals should not be totally one-sided. Our partners need to show at home what they achieved to compensate for the boat full of concessions that they felt that they had no choice but to make. India is not alone. Over recent months, we have seen opposition emerge in Malaysia, the EU (parliament), Korea and elsewhere. It’s tempting to dismiss this factor with the attitude of “not my problem.” But one thing I learned during my many years of negotiating is that it can quickly become your problem. If the partner faces growing internal opposition it will be hard for them to secure approval for the deal, and-or implement it.

Most negotiations don’t fail because people lack arguments. They fail because people argue the wrong thing. This carousel isn’t about clever lines or pressure tactics. It’s about how value is actually created in real negotiations. Here’s how to read what you’re about to swipe through. 1. Start with value, not position Most negotiators defend positions. Great negotiators explore value. When you start with yes or no, you shrink the pie before the discussion even begins. When you start with what does this unlock, new options appear. Think of a supplier pushing price versus one exploring delivery timing, risk reduction, or volume planning. Same deal. Very different outcome. 2. Separate people from the problem When people feel attacked, they protect themselves. When they feel respected, they collaborate. This isn’t about being soft. It’s about keeping the conversation productive when stakes are high. You can be firm on the issue and respectful with the person at the same time. 3. Trade — don’t concede Concessions leak value. Trades create it. If something has value to the other side, it has value back to you. Giving something away just to move on trains the counterpart to wait for more. 4. Make value visible If value isn’t visible, it doesn’t exist in the decision. Cost reductions. Risk removed. Time saved. Revenue protected. This is where negotiations become a math problem, not a debate. 5. Use trust as a currency Trust isn’t nice-to-have. It’s measurable. High trust lowers transaction costs, speeds decisions, and reduces the need for legal safeguards. Low trust does the opposite — and both sides pay for it. 6. Design the decision — don’t push it People resist conclusions they didn’t help shape. Strong negotiators don’t push outcomes. They design choices, scenarios, and options — and let the counterpart choose the path. 7. Think long-term, even in one-off deals Short-term wins often destroy long-term value. A simple test: Would you accept this deal again? Would you recommend this counterpart? SMARTnership negotiation isn’t about being nice. And it’s not about being tough. It’s about creating measurable value, reducing risk, and building outcomes that last. Negotiation is a skill — not a talent. And it can be learned. #negotiation The Program on Negotiation at Harvard Law School World Commerce & Contracting BMI Executive Institute BMI Alumni Executive Club UCLouvain I BMI Executive Institute AAU Executive - MBA and HD at Aalborg University Tine Anneberg Gražvydas Jukna Juan Manuel García P. Jason Myrowitz Tiffany Kemp Moïse NOUBISSI Said A. ,(MBA, EFQM) Francisco Cosme Dr. Tarun Rochwani

💡The most favoured nation (MFN) clause can be a game-changer for the 147 Members of the Inclusive Framework (IF) while negotiating the concessions for the U.S. in relation to Pillar Two (P2), if only legal arguments will not be silenced by political narration. Martin Wolf article “A return to tariffs, Taco or not” underscores the importance of the most favoured nation (MFN) clauses in trade, tax and investment treaties in respect to the U.S. retaliatory trade measures (by analogy tax measures). His last conclusion is particularly interesting:   ➲"all members of the World Trade Organization should declare that any trade concessions made to the US will be extended to other members, in accordance with the “most favoured nation” principle. Finally, the other members should also abide by their agreements with one another. The US has gone rogue. The rest of the world need not follow.”   The work of Stef van Weeghel and mine "VCLT and the Peaceful Coexistence of Tax and Investment Treaties: A Case Study of Limited MFN Clauses and the FET Standard" [link to the full open access version in the comment below] shows that the fair and equitable treatment (FET) - pervasive among international investment agreements (IIAs) - can be violated if MFN clause under tax treaties is not applicable properly - there are more than 500 tax treaties with MFN clause. Similar argument can be made for MFN clause under trade treaties. Long story short, MFN is pervasive in trade and investment treaties and in quite in hundreds of tax treaties. Thus, MFN (and FET) could, if not should, be a driving legal force for the 147 Members of the IF while negotiating the concessions for the U.S. in relation to P2, in addition to other arguments stemming from international law: any concession given to US re: P2 must be extended to all states which are contracting parties of trade and investment treaties of 147 Member of the IF + under all tax treaties with MFN clauses. Of course, the same applies to tariffs.   So far legal arguments from international law did not seem to reach the mainstream media. But now they start to appear there and, I guess, more will come, esp. that the Belgian Constitutional Court decided to ask the Court of Justice of the European Union to answer to the question about the compatibility of the UTPR with EU primary law. We shall see whether arguments stemming from international law will be used by Members of the IF. The MFN can clearly be one of the deal maker or deal breaker to achieve a sensible solution. For example, China, India, Poland, Indonesia, Japan, Canada, Norway, Switzerland, etc. may say that if the U.S. MNEs are to be partly exempt from their domestic P2 rules, all other MNEs that benefit from MFN under relevant trade, tax and investment treaties shall be treated equally good. In other words, all states have equal right to carve UTPR as they seem fit to comply with their international obligations under tax, trade and investment treaties.

U.S.–India Joint Statement: Trade Deal or Strategic Trade-Off? The February 6 Joint Statement is being marketed as tariff relief for India. A closer read suggests something more asymmetric: strategic and commercial gains for the United States, with significant concessions by India. Key takeaways worth pausing over: 🔹 Tariff relief with strings attached U.S. tariff cuts are explicitly linked to India not buying Russian oil—despite no written Indian commitment. Relief can be reversed unilaterally, turning geopolitics into a tariff trigger. 🔹 India cuts deep; U.S. barely moves India will cut or eliminate MFN tariffs on all U.S. industrial goods and many sensitive farm products. The U.S., meanwhile, keeps its MFN tariffs intact—offering only partial rollback of punitive “reciprocal tariffs.” 🔹 Farmers & factories at risk Tariff cuts on U.S. fruits and soybean oil could hurt Indian farmers. Concessions on autos, electronics etc risk undermining domestic manufacturing. 🔹 Trade policy meets foreign policy “Economic security alignment” could constrain India’s sanctions policy, trade ties with third countries, and even future FTAs—raising questions about strategic autonomy. 🔹 Regulatory and digital space squeezed Commitments on standards, NTBs, and digital trade risk subordinating Indian regulation to U.S. certification systems and limiting India’s ability to tax or regulate Big Tech. 🔹 $500 billion promise: headline, not reality Doubling U.S. imports to $100 bn a year rests on private-sector decisions—especially aircraft purchases—beyond government control. Bottom line: This looks less like a balanced interim trade deal and more like a recalibration of India’s trade, regulatory, and strategic choices in exchange for conditional tariff relief. Before celebrating, India needs clarity, symmetry, and enforceability—not headlines. Trade deals are written in fine print, not press releases.

Strong Negotiators Don’t Just Push Harder - They Play Smarter Most procurement negotiation advice is wrong: - "Push for the lowest price" - "Dominate the conversation" - "Stick to your first offer" The real power moves aren’t always obvious. Great negotiators don’t just demand better deals - they create them. They walk into every conversation with clarity, leverage, and strategy. A mindset that will help you: - Control the negotiation before it starts - Shift focus from price to total value - Build leverage through data, not pressure - Turn suppliers into partners, not just vendors Winning isn’t about pushing harder. It’s about negotiating smarter. Here are 9 negotiation tactics to secure better deals and stronger supplier relationships: 1️⃣ Prepare Like a Pro ↳ The best negotiators win before the meeting starts. ↳ Walk in with market data, benchmarks, and a clear game plan. 2️⃣ Start with the Right Anchor ↳ Set the first number whenever possible. ↳ A strong opening shapes the rest of the deal. 3️⃣ Turn Price Talks Into Value Talks ↳ Instead of “We need a discount,” ask, “How can we improve efficiency?” ↳ Frame the conversation around long-term cost savings, flexibility, and risk mitigation. 4️⃣ Use Silence as a Tactic ↳ After making a request, pause. ↳ Suppliers often fill the silence with better terms. 5️⃣ Ask the Right Questions ↳ “What would make this a win-win for you?” ↳ Questions uncover hidden value and supplier motivations. 6️⃣ Leverage Competition Wisely ↳ “We have other options” is powerful - but don’t bluff. ↳ Real leverage comes from credible alternatives. 7️⃣ Be Ready to Walk Away ↳ The strongest position is having a backup plan. ↳ If the deal doesn’t work, don’t force it - find a better one. 8️⃣ Get More Than Just Price Concessions ↳ If price won’t budge, negotiate better payment terms, service levels, or added value. ↳ Sometimes, extras are worth more than a discount. 9️⃣ End With an Open Door ↳ Even if you don’t close now, leave room for future deals. ↳ Relationships often matter more than one contract. 💡 The best deals aren’t won at the table - they’re shaped before the conversation even starts. What’s your #1 rule for winning supplier negotiations? Let’s discuss! ♻️ Repost to help others negotiate smarter. ✅ Follow Miroslav Pitlanic for more insights on procurement, sourcing, and business transformation.

Symptoms: Shrinking patience. Sloppy concessions. “Let’s just sign.” Onset: Week 7–12 of diligence. Complications: Price erosion, bad terms, missed red flags. Diagnosis: Deal fatigue. Prognosis (untreated): Expensive. Here’s the truth: buyers negotiate on price and time. When you’re tired, time wins for them. Deal fatigue shows up quietly: – You stop pushing for clarity on definitions. – You accept a broader non-compete than you’d ever advise a friend to sign. – You nod through a working capital tweak you don’t fully understand. – You tell yourself, “It’s fine—we’re almost there.” That voice is costly. Early warning signs – Midnight emails answering diligence directly (no filter/context). – Letting advisors “work it out” without guardrails. – Reacting to buyer timelines instead of running your own. – KPI cadence slipping because “the deal is taking all the air.” What fatigue does to the deal ▪ Erodes economics: basket here, scrape there, escrow bumped. ▪ Bloats obligations: post-close duties expand, earn-out gets fuzzy. ▪ Kills judgment: you trade certainty for speed and call it “momentum.” Countermeasures (before you’re tired): ■ Pre-commit red lines. Lock in non-compete scope, escrow %, survival, earn-out triggers before LOI. ■ Appoint a decision quorum. Commercial, legal, finance—two must agree before concessions. ■ Time-box negotiations. Fixed call windows; outside them, you run the company. ■ Script your pause. (“We’ll revert after internal review.” “Let’s model the impacts.”) ■ Trade—don’t concede. Every “give” must earn a “get.” ■ Reframe the clock. Publish a weekly close plan; timelines stop being the buyer’s weapon. ■ Protect sleep. No 11pm redlines, no weekend economic calls. ■ Keep the shop steady. Run quick M/W/F huddles: revenue, pipeline, churn, delivery. When you’re already tired (triage): – Reset: “We’re consolidating open issues into one trade.” – Bundle: 5 small asks → 1 balanced swap. – Escalate once: push to principals for fast resolution. – Take 24 hours: a day now beats 24 months of regret. ⚠️ Last thing: closing fast and closing well are not the same sport. Your future self won’t thank you for speed. They’ll thank you for standards. → Want the anti-fatigue toolkit (red-line template, trade matrix, close-plan, and scripted pauses)? Download the Sellability Checklist: https://lnkd.in/ghW8zsqT #MandA #ExitStrategy #DealMaking #Negotiation #DueDiligence #FounderAdvice #BusinessSale #Entrepreneurship

Trade Agreements and Negotiation: In FMCG Context Trade Agreements refer to formal, legally binding contracts between two or more parties (often countries or businesses) that outline the terms of trade, such as the exchange of goods, services, and information. These agreements aim to reduce trade barriers like tariffs, quotas, and regulations, promoting smoother and more efficient cross-border or business-to-business trade. Negotiation is the process by which two or more parties engage in discussions to reach a mutually agreeable solution or contract. Negotiation typically involves compromise, persuasion, and the exchange of offers and counteroffers to arrive at terms that satisfy both parties. Key Elements of Trade Agreements in FMCG: 1. Volume and Pricing Agreements: FMCG companies and retailers negotiate product quantities, prices, and delivery schedules. The pricing agreement typically includes volume discounts or tiered pricing based on the amount of product ordered. Discounts may be given to retailers based on bulk purchases or guaranteed shelf space for new product lines. 2. Promotional Allowances: FMCG companies often negotiate with retailers to run joint promotional campaigns. This can include funding for advertisements, special in-store displays, or discounts that retailers can pass on to consumers. Negotiations may include shared costs for these promotions and agreements on timelines, specific products, and expected outcomes. 3. Shelf Space and Category Positioning: FMCG account managers work to secure the best possible shelf space in stores (eye-level placement, endcaps, etc.), as prime placement leads to higher sales. Negotiations often involve trade-offs, such as offering additional promotional discounts or co-branding efforts. 4. Payment Terms and Credit: Trade agreements outline the terms of payment, including credit periods (e.g., 30 or 60 days after delivery), early payment discounts, or other terms related to invoicing and payment collection. Negotiations ensure that payment terms are favorable and manageable for both parties. 5. Return Policies and Stock Management: FMCG businesses often have agreements in place with retailers on how to handle unsold or expired products. Clear return policies are crucial, and negotiation focuses on minimizing losses through product returns, write-offs, or markdowns. Account managers must negotiate for favorable terms on product returns or stock replenishment schedules. 6. Compliance with Legal and Regulatory Frameworks: Trade agreements must align with legal regulations governing fair competition, anti-trust laws, and ethical business practices. Negotiations need to ensure compliance with national and international trade laws, including the distribution of products across different regions. Trade Agreements and Negotiation in FMCG businesses are critical in managing relationships with key clients, retailers, distributors & wholesale.

Top reps rarely negotiate down. They package UP. Here's how they do it - (𝟭) 𝗘𝘃𝗲𝗿𝘆 𝗰𝗼𝗻𝗰𝗲𝘀𝘀𝗶𝗼𝗻 𝗵𝗮𝗱 𝗮 𝗰𝗹𝗲𝗮𝗿 𝗿𝗲𝘁𝘂𝗿𝗻 Value is *traded*, not given. - Discounts came with multi-year commitments - Extra licenses came with use case expansion - Add-ons came with exec sponsorship (𝟮) 𝗩𝗮𝗹𝘂𝗲 𝗺𝗲𝘀𝘀𝗮𝗴𝗶𝗻𝗴 𝘄𝗮𝘀 𝘀𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿-𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 The best reps didn’t sell just one story... They sold 4, depending on who they were talking to - - Procurement: pricing transparency & contract flexibility - Executive: strategic leverage across teams - Tech lead: ease of rollout, integration, & security - Economic buyer: ROI and cost savings The hidden wisdom here? 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝘄𝗼𝗿𝗸𝘀 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝘃𝗮𝗹𝘂𝗲 𝗶𝘀𝗻'𝘁 𝘂𝗻𝗶𝘃𝗲𝗿𝘀𝗮𝗹. What's valuable to them may be an easy give for you, & vice versa. Understand this ^ to trade & package UP Instead of negotiating down. Analysis by Corey Fineman & Lexi (Wall) Ford. (Data from deals of 127 top performers at Gong)

Negotiation stalled? Offer smart choices, not discounts Here’s how to use MESOs to protect margin, shorten cycles, and uncover hidden value in high-stakes deals. This week, I spoke at REF in Panama to 50 top executives on "The Smart Negotiator", thanks to the initiative of Marcos Tejeira and Robbie Garcia. I promised to share how MESOs can transform their deals. In one session, a participant told me: “We wasted six weeks chasing price, and still left value on the table.” That’s the trap of single-offer bargaining. The fix? MESOs: Multiple Equivalent Simultaneous Offers. → Three (or more) complete packages. → Equal in value to you. → Different mix of issues. They choose. You learn. You control the frame. Why savvy negotiators use MESOs: • Control anchoring; your packages set the reference points, not theirs. • Surface priorities fast, minutes, not weeks. • Reduce defensive posturing, more openness, fewer deadlocks. • Protect margin, trade across issues, not just price. Five clear steps to build MESOs: 1. Identify all negotiable issues, beyond price: term length, scope, service, IP rights, payment timing, risk allocation. 2. Rank them by importance to you; link each to margin impact, risk reduction, or strategic positioning. 3. Design three strong packages, each one acceptable to sign, each pointing toward your preferred outcome. 4. Present as choice, not concession: “We can make this work in several ways. Here are three that work for us.” 5. Use their preference as intelligence, refine the next set of packages to capture more joint value without crossing your limits. When done well, MESOs aren’t just a tactic; they’re a system for creating and capturing value. If you don’t control the options, you’re playing their game. 📌 Save this for your next high-stakes negotiation. ♻️ If this sharpens your game, share it with your team. 

Have you ever wondered how companies secure better contract terms? It’s not luck; it’s strategy. Negotiation is not about winning; it is about securing the best terms while maintaining strong relationships. It is about ensuring long-term value, flexibility, and a partnership that works for both sides. Here are some proven strategies: 1️⃣ Know Your Deal Breakers & Where You Can Give Not every term is worth fighting over, but some are non-negotiable. Before you start, be clear on what you absolutely need and where you have flexibility. If you give on minor points, the other side is more likely to meet you on the big ones. 2️⃣ Just Ask – It’s That Simple One of the easiest ways to save money? Simply asking. A quick “Can you do better?” or “Are there any discounts available?” can open the door to better terms. Vendors expect negotiations, and if you never push back, you might be leaving savings on the table. 3️⃣ Look Beyond Price – Value Matters Too Price is just one piece of the puzzle. If the vendor cannot move on cost, shift the focus to value. Ask for: ✔️ Better service levels or faster response times ✔️ More flexible payment terms ✔️ Free upgrades or additional features ✔️ Longer warranties or extended support These extras can be worth more than a discount. 4️⃣ Control the Renewal Terms – Avoid the Auto-Renewal Trap Many companies forget about renewals, which can include price increases. Before signing, check: 📌 Does the contract auto-renew? What is the cancellation notice period? 📌 Can they increase pricing without renegotiation? 📌 Do you have flexibility to adjust terms if business needs change? Make sure you can review and renegotiate before getting locked in again. 5️⃣ Silence Is Your Friend – Let Them Talk First After you ask for a better price or terms, pause. Do not fill the silence. Let them respond. Many people feel uncomfortable with silence and will start offering concessions just to keep the conversation moving. 6️⃣ Be Willing to Walk Away – Your Strongest Leverage Your greatest power in negotiation is the ability to walk away. If the deal does not meet your core needs, be ready to say no. This often shifts the conversation in your favor. It is not about playing games; it is about knowing your value. 7️⃣ Negotiation Is Not a Battle – It’s a Relationship The best negotiations do not feel like fights; they feel like problem-solving. If you collaborate instead of compete, you will secure better terms while keeping the relationship intact. A vendor who feels valued is more likely to: ✔️ Offer you their best pricing and service ✔️ Be flexible when your needs change ✔️ Go the extra mile when you need urgent help Bottom Line? Just Ask. Negotiation does not have to be complicated. Sometimes, all it takes is asking the right questions. Want help structuring your negotiations or optimizing your contracts? Let’s chat. #Negotiation #ContractManagement #Procurement #VendorManagement #BusinessStrategy #LetsChat