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Negotiation Styles 

American and Japanese negotiators have significantly different negotiation and problem solving styles. The following chart provides insight into the differences between the two, as well as the difficulties presented by the differences.

Key Points of Conflict Between

U.S. and Japanese Negotiation Styles

 

 

Category

Basic cultural values

American

  • Competition
  • Individual decision-making and action
  • Horizontal business relations
  • Independence

Japanese

  • Cooperation
  • Group decision-Making and action
  • Vertical business relations
  • Interdependence

Negotiation Process

  1. Non-task sounding

 

 

  1. Task-related exchange of information

 

 

 

  1. Persuasion

 

4. Concessions and agreements

  • Short
  • Informal
  • "Fair" first offers
  • Full authority "cards on the table"
  • Explicit communication

 

  • Aggressive, persuasive tactics (threats, promises, arguments and logic) "you need this"

 

  • Sequential
  • Goal = good deal
  • Long
  • Expensive
  • Formal
  • "Banana sale" first offers include room to maneuver
  • Limited authority
  • Implicit communication
  • Consensus and use of an intermediary—involves explanation of position
  • Holistic
  • Goal = long-term relationship

Graham, John L. and Yoshiro Sano. Smart Bargaining, Doing Business with the Japanese.
Cambridge , MA : Ballinger Publishing Company. 1984. 29.

 

Interest Analysis Flower Marketing Cooperative/CAABT

Flower Marketing Cooperative/CAABT

 

People

 

Interests

 

Options

 

Objective Criteria

 

BATNA

Flower Marketing Cooperative

Export & deliver quality cut flowers to Japan .

Lower shipment costs and losses.

Expand market

Raise profits

 

 

 

 

 

 

 

 

 

 

Market/distribution access.

 

 

Alternative to methyl bromide (MB) as pest extermination tool.

 

 

 

Cosmopolitan bug declared as non-threatening to Japan . MB spraying unnecessary.

Fulfill Japanese SPS zero tolerance levels.

Persuade Japan to lower its tolerance level to a reasonable level.

Approach USDA to investigate issues with Japan .

Stop cut-flower shipments to Japan .

Pre-shipment inspection by Japanese – USDA pilot project to absorb part of the export costs.

 

Identify a Japanese freight forwarder and wholesaler.

 

 

New post-harvest research on cost- and pest-effective alternatives to methyl bromide.

Pre-shipment inspection by Japanese.

USDA/EPA approval of MB alternatives.

Research cosmopolitan bug status.

Rules cannot be changed.

 

Research risk of pests to prove pests are non-threatening to Japanese flower industry.

Establish pre-inspection program used by the orange industry for exports to Japan .

 

 

 

Document unsuccessful delivery of product to customs due to complications created by Japanese distributors.

Pest extermination rates, cost and effect on flowers.

Cost and success of pre-shipment inspection.

 

 

 

 

 

 

 

Codex definition of cosmopolitan bugs.

 

WTO SPS rules

WTO Dispute Panel

 

 

 

 

 

 

 

 

 

 

 

Pressure Japanese to approve a post-harvest alternative to methyl bromide.

Alternative to MB.

 

 

 

 

 

 

 

 

 

 

 

Florimex Sydney Office

Piggyback supply with U.S. producers during Australian off-season.

Maintain year round supply. Generate year round demand.

Identify another producer outside the U.S. to supply flowers to Japan .

Increase price during Australian growing/export season.

Japanese demand for Australian cut flowers.

 

Cost to stockpile and effectiveness of doing so.

Japanese consumer willing to pay a high price for flower? Demand = Cost?

Identify alternative supplier.

Increase price of product during Australian growing/export season.

Florimex Japan Office

Off season - piggy back with U.S. supplier.

 

 

 

Maintain year round supply. Generate year round demand.

 

Assist SDPF in successful delivery of product to Japan .

Identify another producer outside the U.S. to supply flowers to Japan .

Stop sales of these varieties in off-season.

Increase price of product during Australian growing/export season.

Identify self as Japanese entity.

Identify a successful freight forwarder for SDPF.

Aid SDPF in customs clearance.

Work with USDA and SDPF to lower Japanese barriers to trade.

Support U.S. effort to open trade with Japan through bilateral negotiations with MOFA.

 

 

 

 

Climate availability.

 

 

 

 

Japanese consumer willing to pay a high price for flower? Demand = Cost?

Freight forwarders success in getting products to Japan’s market in a timely manner.

.

 

 

Identify another supplier of the varieties.

 

 

 

 

 

 

Increase price of product during Australian growing/export season.

 

Japanese Retailers

 

 

 

 

 

Year round supply of wax flower and protea.

Source product from U.S.

Pressure Japanese government to lower non-tariff barriers.

 

 

Depend only on Australian supply.

Japanese demand for flowers.

Do nothing to assist U.S. shipments.

USDA, Foreign Agricultural Service (FAS)

Helping SDPF penetrate Japanese and other export markets.

Opportunity to demonstrate Japanese SPS regulations prohibit the entrance of U.S. agricultural products.

 

 

 

 

 

 

 

 

Provide U.S. cut-flower industry opportunity to recover from preferential U.S. legislation provided to Colombian flower producers.

Expand U.S. exports.

Assign division within FAS to investigate problem.

Extended work on Japan ’s non-tariff barriers.

Push further liberalization of Japan ’s SPS standards.

Bilateral negotiation with MOFA.

Push USDA to take case to Japanese.

 

 

 

 

Provide export assistance to SDPF (export credits, market support.)

Develop FAS programs to address such issues.

Have embassy ag office help cut-flower exporters.

 

 

 

 

Number of ag sectors that gain access to the Japanese market

U.S.-Japanese impasses on other ag disputes.

U.S.-Japan resolutions that deal with SPS and non-tariff barrier issues.

 

 

Success of USDA export programs that assist small exporters penetrate the Japanese market.

Support of sector by Chris Goldwaite.

1997 SPS WTO dispute panel ruling against Japan .

USDA participation in identifying market barriers.

 

WTO Dispute Panel

 

 

 

 

 

 

 

 

 

 

 

 

 

Provide export assistance to SDPF (export credits, market research).

 

USTR

Expand U.S. exports.

Eliminate barriers to trade.

Liberalization according to WTO rules.

Bilateral negotiation with MOFA.

WTO dspute settlement.

Letter to MITI outlining U.S. concerns.

Document the presence of cosmopolitan pests in Japan and the lack of market access.

International SPS & market access standards.

USTR 1997 SPS WTO dispute panel case against Japan .

WTO dispute settlement

U.S. State Department

Maintain good relations with Japan .

Expand U.S. trade.

Pressure Japanese to lower SPS standards & improve market access.

Pressure USDA & USTR to take official action.

 

 

Changes in non-tariff barriers that keep U.S. products out of Japanese market and are prohibited under WTO rules.

Pressure USTR and USDA to take action against Japan .

California Department of Food & Agriculture (CDFA)

Promote California agricultural export interests.

Maintain competitiveness of Californian cut-flower industry.

Push USDA to take SDPF case to the WTO.

California trade policy office could take on case.

Provide export assistance.

WTO SPS rules.

SPS dispute panel rulings.

State & fed government export programs.

WTO dispute settlement

Congressmen from CA & FL

Maintain cut-flower industry in district.

Obtain other Federal assistance for industry.

 

Relieve pressure on industry from cheap Colombian flowers.

Jobs = Re-election Votes

 

 

Pressure USDA to provide assistance through export programs.

Pressure USTR & USDA to enter bilateral negotiation with MOFA.

Push for direct export assistance for SDPF and other cut-flower exporters.

Available federal export programs.

WTO SPS and Market Access rules.

WTO dispute panel rulings.

Health of cut-flower industry.

 

Push for bilateral negotiation with MOFA.

Push for WTO dispute settlement.

 

 

 

 

Japanese Cut- Flower Grower

Limit foreign competition in Japanese cut-flower industry.

Protect dying Japanese agricultural industry and lifestyle. (If let one in, will have to let the rest.)

Informally regulate the entrance of foreign produce. (Sons are customs officials,)

Bilateral negotiations with U.S. representatives.

Pressure government to maintain SPS and non-tariff barriers for foreign competition.

 

 

Each country sets own SPS standards based on hard science.

All ag imports to Japan face same regulations.

Wait out the process.

Japanese Ministry of Agriculture

 

 

 

 

 

 

 

 

Japanese Ministry of Agriculture

Maintain zero tolerance SPS levels to prevent the entrance of foreign Agricultural products.

Island nation stance.

 

 

Protect Japanese flower growers.

Protect entire agricultural industry from international competition.

Cannot give-up ground if want to maintain protection for all Japanese agricultural markets.

 

 

 

 

Do nothing.

Stonewall U.S. until,

U.S. gives up on initial goal and allows for small Japanese concessions.

 

 

 

 

Enter bilateral negotiations with the U.S. if requested.

Concede only the minimum.

If backed into corner will not make concessions—want to maintain protection for all Japanese agricultural markets.

Each country sets own SPS standards based on hard science.

All ag imports to Japan face same regulations.

 

 

Wait out the process.

MITI, Japanese Trade Ministry

Maintain trade policy that blocks foreign imports.

Maintain closed distribution structure.

Maintain traditional Japanese trade structure.

Do not allow U.S. access to cut-flower market.

Maintain closed Japanese market structure.

Do not offer concessions to U.S. Wear negotiators down without conceding to their demands.

Each country sets own SPS standards based on hard science.

 

Do not offer concessions to U.S. Wear negotiators down without conceding to their demands.

Colombian Cut-Flower Importers

Provide low cost product to Japanese market.

Establish protocol with Japan so can compete with Australia and U.S. in Japanese market.

 

Establish contacts that will facilitate trade flows with Japan .

Push Japan to sign protocol for cut flowers before the U.S.

Stable long-term relationships to ensure trade relationship.

Protocols signed by Japan with other countries.

Ad hoc exports to Japanese market.