SESSION 3 THE ART OF DRAFTING TRADE NEGOTIATION POSITION PAPERS Jakarta, 27-28 February 2018 Alexandre Larouche-Maltais Senior Trade & Investment Expert Conference Board of Canada Partner: Project Executed by:
Outline: The Art of Drafting Trade Negotiation Position Papers Design a strategy • Invest in HR • Monitor Intro • Communicate (Part 1) • Drafting position papers (Part 2) Communicating efficiently • Know your stakeholders • Build trust with the government Part 1 • Strengthen your network and create coalitions • Reach out to the public Drafting position papers Part 2 • Drafting to convince: use the “recipe for success” !
INTRODUCTION DESIGN A STRATEGY Invest in HR Monitor Communicate Get involved
Invest in HR Design a Get involved Strategy Monitor strategy Communicate
Invest in HR Most Canadian BAs have very limited staff dedicated to PPC for FTA negotiations. Private sector organizations Get involved Strategy Monitor may use their members’ expertise and in-kind contribution to reduce costs In any case, better to invest in qualified staff, than more staff. Communicate
Invest in HR Monitoring international trade negotiations is an essential first step before Get involved Strategy Monitor getting involved in PPC Useful, online free-access tools can be used by BAs Communicate
Use online free-access tools Initiated in 2004, bilaterals.org responded to a concern about the Created in 1996, Bridges seek to: growth of bilateral trade and investment deals outside of the WTO and a feeling that these less • Improve transparency in visible agreements were "under the multilateral trade negotiations radar" • Build capacity among non- It’s a kind of “collaborative traditional civil society actors clearinghouse” on where people • Provide a platform for could find and post their own underrepresented voices. information and analysis about bilateral FTAs and investment Currently, Bridges is disseminated treaties being negotiated and every Thursday via email. signed across the globe, and who is doing what about them
PART 1 COMMUNICATING EFFICIENTLY Know your stakeholders Build trust with the government Strengthen your network and create coalitions Reach out to the public
Communicating efficiently with… Members or Government Stakeholders General Other BAs public
Communicating efficiently with… Regular in Knowing your person stakeholders is meetings or essential to phone calls build your credibility and authority as a Members or Restricted business Stakeholders newsletter organization. Identify the best ways to stay aligned with your members’ Knowledge needs and sharing events priorities.
Montreal Chamber of Commerce organizing an event on “CETA, source of business opportunities for Québec, France, and Canada” with high -level officials http://www.ccmm.ca/en/news/blog_aecg_video/
Communicating efficiently with… Regular in Building trust person with the meetings or government phone calls takes time. Use every occasion Appearing to participate in before Government consultations Parliamentary and be Committees responsive. Importantly, Submitting respect positions confidentiality papers during clauses. PPC
Standing Committee on Banking, Trade and Commerce: Remarks from the Business Council of Canada Study on new and emerging issues for Canadian importers and exporters in North American and global markets https://sencanada.ca/en/committees/banc/Witnesses/42-1
Communicating efficiently with… Strengthen your network Establish a and create network coalition. Often, one enterprise is Submit represented by joint Other BAs more than one BA; avoid papers competition when possible and join your Build forces enhance coalition your influence power.
NAFTA: Signing of a joint declaration by 25 metropolitan chambers of commerce from Canada, US and Mexico http://www.ccmm.ca/en/news/com_nafta--signing-of-a-joint-declaration-by- 25-metropolitan-chambers-of-commerce-from-canada--us-and-mexico/
Communicating efficiently with… Do not neglect Publish your public relations, position papers reach out to online the population in general. Sometimes, the Go to the General public may feel traditional medias public (TV, newspapers, that businesses’ radio, etc.) interest diverge from theirs; explaining your Use modern communication position may channels (social help gaining media, Youtube, public support. etc.)
The Canadian Chamber of Commerce using YouTube to reach out to the general public…
PART 2 DRAFTING POSITION PAPERS Drafting to convince: use the “recipe for success” !
What’s the “recipe for Ingredient #1 success”? Ingredient #2 Private sector organization participating in public-private Ingredient consultations seek to influence the government in #3 a certain way that will benefit their stakeholders/ members and the domestic economy in general. Based on interviews conducted with Canadian BAs, written submissions must Success have 3 characteristics to maximize their impact.
#1 Evidence-Based Arguments Evidence- Based Ingredient Well researched inputs, using #2 information from independent and reliable sources Ingredient #3 Grounded in facts, using information from primary sources at the border or from abroad Founded on economic science, consensus from experts Success
#1 Evidence-Based E.g.: Business Council of Canada: “Why Arguments China matters: Building a framework for a Canada- China partnership” (2016) According to McKinsey Global Institute : Well researched inputs, using • China will create 28,000 km of information from independent and railways by 2025 – enough track to lie reliable sources across the Canada-U.S. border three times. • Chongqing, already the fastest- Grounded in facts, using growing city on the planet, will soon information from primary sources at the border or from abroad have a population larger than Canada’s. • By 2030, China is expected to construct up to 50,000 new Founded on economic science, skyscrapers – 1000 times the number consensus from experts currently built in Toronto.
#2 Positions supported by members Evidence- Supported Based by Give updated information about members your membership / stakeholders network Ingredient #3 In case of absence of consensus, describe the majority vs minority position Mention how your organization has conducted internal consultation Success
#2 Positions supported by E.g.: Business Council of Canada: “The investment environment in Canada” 2017 members Between July 26 and August 18, 2017, the BCC conducted an online survey of Give updated information about its members to gauge their perspectives your membership / stakeholders on the Canadian investment environment. network A total of 61 business leaders took part in the survey. In case of absence of consensus, describe the A clear majority of those surveyed (57 per majority vs minority position cent) said that investment conditions in Canada are less attractive than in the other countries in which their company Mention how your organization invests. When they were asked where has conducted internal their companies tend to invest most, consultation other than in Canada, the top response was the United States .
#3 Useful inputs for negotiators Evidence- Based Supported by Speak as a negotiator: Suggest a list members of priorities, chapters to cover, and even specific provision formulation. Useful for negotiators Be realistic : Cover both offensive and defensive interests, within the scope of your mandate Explain positions sufficiently, especially if they may be difficult to defend or highly technical Success
#3 Useful inputs for E.g.: Canadian Chamber of Commerce, “Submission to the NAFTA Negotiating negotiators Team at GAC On Re-negotiation of the NAFTA” (2017) Canada’s Agenda Speak as a negotiator: Suggest a list The CCC strongly believes Canada of priorities, chapters to cover, and should enter these negotiations with a even specific provision formulation. “ shopping list” of objectives and not just a defensive posture on items we believe the U.S. or Mexico will propose. Be realistic : Cover both offensive and defensive interests, within the scope of your mandate Some Canadian priorities would include : • E-commerce • Explain positions sufficiently, Regulatory cooperation especially if they may be difficult to • Reduce the administrative burden of defend or highly technical rules of origin • Reduce onerous extra-territorial U.S. financial regulation • Trade remedy cooperation • …
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