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About ITCD
The Institute
for Trade and Commercial Diplomacy (ITCD) is a world leader in the development
of training materials in Commercial Diplomacy. ITCD was founded in 1999
and is headquartered in Arlington, Virginia, USA. Geza Feketekuty,
the President of ITCD, developed the first comprehensive Master’s
level graduate program for training Commercial Diplomacy professionals
in 1996 at the Monterey Institute for International Studies (MIIS) in
Monterey, California, USA. Building on the experience and materials
initially developed for the graduate program ITCD designs and delivers
training courses for a global audience. In April 2005, ITCD launched
a module-based Online Certificate Program on the Professional
Practice of Commercial Diplomacy. The structure of the program provides
a roadmap for individuals seeking to learn about Commercial Diplomacy
or to strengthen their Commercial Diplomacy skills and knowledge acquired
through practice. Visit www.itcdonline.com
for information on registration, frequently asked questions, and a full
program description.
ITCD also supports the development of professional training in Commercial
Diplomacy by other institutions, particularly in developing countries,
by partnering with such institutions and making available education
and training materials in Commercial Diplomacy through its web site,
www.commercialdiplomacy.org. The materials produced by ITCD include
model curricula and teaching guides, manuals, case studies, simulations,
Power Point presentations, model advocacy and negotiating documents,
and resource guides. Learn more about ITCD's training materials and
programs by visiting ITCD's web site, www.commercialdiplomacy.org.
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Who Are Commercial Diplomats?
The
most obvious practitioners of Commercial Diplomacy are trade officials
who are charged with negotiating international trade and investment
agreements and resolving policy conflicts that impact on international
commerce. Trade officials are only the most visible Commercial Diplomats
and are usually outnumbered by personnel with trade-related responsibilities
in many other government departments and ministries.
Examples include:
- Officials
from departments or ministries responsible for foreign affairs,
finance, agriculture, industry, labor, health, the environment,
the regulation of banks, telecommunications, air transportation,
or the licensing of professionals.
- Managers
in the international departments of industry associations, corporations,
unions, and non-governmental organizations who have a stake in
the outcome of trade policy decisions and therefore play a role
in the domestic and global political advocacy and coalition-building
process that usually precedes negotiations on international
- Corporate
managers posted in foreign countries where they must interact
extensively with the host government on a broad range of regulatory
issues.
- Professionals
in international organizations that deal with global trade, investment,
and trade-related regulatory issues.
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What is Commercial Diplomacy?
Commercial
Diplomacy is diplomacy with a commercial twist – diplomacy designed
to influence foreign government policy and regulatory decisions that
affect global trade and investment. In the past Commercial Diplomacy
concerned itself largely with negotiations over tariffs and quotas
on imports. In today’s more interdependent world, trade negotiations
cover a much wider range of government regulations and actions that
affect international commerce – including standards in areas
such as health, safety, environment, and consumer protection; regulations
covering services such as banking, telecommunications and accounting;
competition policy and laws concerning bribery and corruption, agricultural
support programs; and industrial subsidies.
Commercial Diplomacy encompasses the whole analysis, advocacy, and
negotiating chain that leads to international agreements on these
trade-related issues. In the highly interdependent world we live in
today, the policy issues subject to trade negotiations are often very
complex and touch on a myriad of domestic policy issues, legal provisions,
institutional issues, and political interests. The first step in Commercial
Diplomacy, therefore, is to undertake an in-depth analysis of all
the factors that can have a bearing on the policy decision-making
process at home and abroad. It requires an in-depth analysis of all
the dimensions of an issue: the commercial interests at stake, the
macro-economic impact of alternative policy options, the interests
of all possible stakeholders and their political influence, the domestic
policy issues entwined with the trade issue, the applicable domestic
and international legal provisions, and the impact of media coverage
on public opinion.
Commercial Diplomacy deals with political decision-making, and, therefore,
is all about exercising political influence. In fact, issues related
to the access of foreigners to domestic markets, their right to buy
domestic assets such as land and businesses, and their qualification
to provide a wide range of services are often even more political
than purely domestic regulation by governments. Thus, Commercial Diplomacy
usually requires a heavy dose of domestic politics, both at home and
in the foreign country, including the active use of a wide range of
advocacy and coalition-building tools.
At
home, the Commercial Diplomat must utilize a full range of political
advocacy tools and techniques to assure support of the home government
for desired outcomes abroad, or to obtain favorable policy actions
by the home government in areas such as taxation, export credits,
and export controls. To obtain governmental decisions favorable to
the stakeholders he/she represents, the Commercial Diplomat must be
able to make effective use of advocacy tools such as letters, testimony,
white papers, speeches, op-ed pieces in newspapers, phone calls, and
personal visits to key stakeholders and decision-makers. The Commercial
Diplomat must also be successful in building coalitions within the
government, industry or interest groups, or among stakeholders with
political influence, thus increasing the political influence that
is brought to bear in support of the desired outcome. The international
phase of Commercial Diplomacy involves the same advocacy and coalition-building
steps required at home, as well as negotiations, dispute resolution,
and mediation.
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What Happens When Commercial Diplomats Are Not Well Trained?
Company
x lost a billion dollar investment because its managers failed either
to understand or to ameliorate latent domestic political opposition
to a crucial aspect of that investment. Country y lost a billion dollar
market because its trade negotiators failed to understand the requirements
for a mutually satisfactory solution to some policy conflicts. Countries
have fought major wars because their trade negotiators failed to arrive
at a mutually advantageous basis for trade.
Most losses due to poor training in Commercial Diplomacy, however,
are less dramatic but have no less of an impact. Commercial Diplomats
must wrestle with numerous unimportant detailed issues that nevertheless
add up and can lead to increasing friction in bilateral relationships
between key countries and missed opportunities in creating new business
opportunities.
In
the highly interdependent world economy that has emerged from the
globalization of production, the commercial success of corporations
and the economic welfare of nations can be affected by the whims of
petty bureaucrats in remote foreign locations. Even in the absence
of ill will, the economic machinery of globalization requires the
intermeshing of uncounted regulatory decisions by governments at all
levels around the world. Resolving policy conflicts is a task that
is best done by professionals trained in integrating the commercial,
economic, political, legal, cultural, environmental, and other policy
considerations that have a bearing on the issue; in short, professionals
trained in Commercial Diplomacy.
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What Does the Commercial Diplomat Need to Know?
Commercial Diplomacy requires
all the finesse and knowledge of traditional diplomacy. In addition
it requires an in-depth knowledge of commercial and macroeconomic
analysis, the analysis of policy issues ranging from health and the
environment to the prudential supervision of insurance, the politics
of trade and foreign investment, national trade laws and global trade
rules, and the role of the media in forming public opinion.
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What
Kind of Training is Required for Commercial Diplomacy?
A comprehensive training
program in Commercial Diplomacy calls for courses in many different
disciplines: economics, business, politics, law, media and public
relations, international relations, negotiation and dispute settlement,
area studies, foreign languages, and culture. Commercial Diplomacy
programs have four distinct stages of instruction: (1) theory; (2)
institutions; (3) techniques and skills; and (4) integration. An ability
to integrate the many dimensions into a multifaceted strategy that
advances stakeholder interests is a critical aspect of professional
training in Commercial Diplomacy.
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What is ITCD Doing to Train
Commercial Diplomats?
ITCD is
a catalyst and facilitator of training in the professional practice
of Commercial Diplomacy and assembles all of the information and training
materials in the field. ITCD makes available course information, lesson
plans, manuals, case studies, model documents, and information resources
at www.commercialdiplomacy.org.
ITCD also works directly with governments, universities, corporations,
international organizations, and NGOs that express an interest in offering
Commercial Diplomacy training. ITCD helps such organizations to identify
the training needs of the potential students and to fashion a training
program that fits the targeted niche. ITCD works with international
development programs funded by the United States Agency for International
Development (USAID) in creating model programs for a number of developing
countries. ITCD has also collaborated with the International Training
Center of the State University of California at San Diego in developing
a model course for its Distance Learning Network that reaches throughout
Latin America.
ITCD provides direct support to the Master of Arts in International
Trade Policy (MAITP), the successor to the Master of Arts in Commercial
Diplomacy (MACD) offered by the Monterey Institute for International
Studies (MIIS), in Monterey, California. The President of ITCD, who
founded that program, continues to offer instruction in that program
on a part-time basis as the Distinguished Professor of Commercial Diplomacy.
Materials developed by ITCD usually find their first application in
the MAITP program at Monterey.
The ITCDonline Certificate Program on the Professional Practice of Commercial
Diplomacy was launched on April 1, 2005. ITCD believes that online
learning is an essential element of its future education and training
services. This module-based program leads participants through the steps
an accomplished professional in Commercial Diplomacy must follow in
advancing the interests of the organization she/he represents in trade
policy decisions, trade negotiations, and the settlement of trade disputes.
It covers the following:
- The
analytical skills and research methods required for an in-depth understanding
of policy issues that affect international business and investment;
- The
communication and consensus-building skills required for influencing
national trade policy decisions and negotiating positions that may
impact business positively or negatively; and
- The
negotiating and dispute settlement skills required for the development
of international agreements and the resolution of international disputes.
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Who Benefits from ICDP’s
Web Site?
ITCD's
materials and methodologies benefit current students and practicing
professionals of Commercial Diplomacy, individuals who want to learn
about Commercial Diplomacy, and institutions that are interested in
developing courses, workshops, or a comprehensive training program
in Commercial Diplomacy. By visiting www.commercialdiplomacy.org
the following tools are made available:
- Course
outlines
- Case
studies,
- Negotiating
simulations,
- Masters
projects,
- Web
links,
- A
guide to information resources,
- A
dictionary of Commercial Diplomacy terms,
- Manuals
covering key skill areas such as writing and quantitative analysis
in Commercial Diplomacy
- General
information about the field,
- A
database of training programs, and
- Links
to useful information about Commercial Diplomacy topics)
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What is the Challenge ICDP Seeks to Address?
The new global economy that
is being forged by the Internet; the ATM machine; and global television
networks like CNN, communications giants like Vidafone, and multinational
firms like Daimler Chrysler demands a new class of well trained professionals:
the Commercial Diplomats. Global production systems, global communications
networks, electronic banking and products create the need for convergence
and integration of regulatory systems, while our national political
and legal systems create divergence. Bridging the gap between our global
economic systems and networks and our national political/legal institutions
is not a simple matter and requires a class of individuals who can integrate
the commercial, economic, political, legal, regulatory, cultural, and
institutional realities that underlie the countless frictions and conflicts
that emerge at the interface between global economic decisions and national
political decisions.
This new class of professionals - the Commercial Diplomats -- have emerged
from the requirements for policy coordination and negotiation among
nations on issues affecting global trade and investment. The training
of this new class of professionals has been haphazard at best and has
relied largely on a defacto apprenticeship system that generates neither
enough qualified nor sufficiently well trained professionals. This gap
between the demand and supply of qualified Commercial Diplomats has
to be met through dedicated training programs focused on the skills
and knowledge required of competent professionals in the field. If professional
training is available for our architects, lawyers, accountants, doctors,
business managers; why not for Commercial Diplomats?
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What
Kind of Materials Does ITCD Make Available?
MODEL
COMMERCIAL DIPLOMACY CURRICULUM
A
comprehensive training program in Commercial Diplomacy calls for courses
in many different disciplines – economics, business, politics,
law, media and public relations, international relations, negotiation
and dispute settlement, area studies, foreign languages, and culture.
The ITCD web site offers a blueprint for such a program.
The model program is structured as a sequence of four distinct stages
of instruction -- theory, institutions, techniques and skills, and integration
-- which are described in more detail below. The sequence of the program
reflects the natural progression in the learning process. Students’
knowledge of trade becomes deeper, and not just broader, as they progress
through the program. The courses that make up the model curriculum are
described briefly and most course descriptions are supported by sample
course outlines and reading lists.
Theory. The first stage provides the intellectual
and conceptual foundation for the field of Commercial Diplomacy. While
it should not be surprising that stage one involves a heavy dose of
economics, the theory stage also includes courses on politics and on
policy analysis.
Institutions. The second stage introduces the institutional context
of trade and trade policy. Courses cover international and national
trade organizations, regional trading arrangements, and international
trade law. Other courses cover the history of thought on trade, the
history and evolution of trade policy, in-depth analyses of case law,
and international institutions.
Skills and Techniques. In the third stage, students
are in a position to combine their knowledge of economics, politics,
law, institutions, media, and culture into a coherent analysis of any
international commercial issue, and to develop an integrated strategy
for advancing policy prescriptions desired by any stakeholder. Students
also learn how to implement the resulting strategy through the development
of operational documents and the effective use of advocacy tools such
as hearings, press conferences, coalition building efforts and negotiations.
Students learn to combine the disparate subjects previously covered
in ways that will enable them to function effectively in the private
and public practice of Commercial Diplomacy. Courses include: (i) the
framing of trade issues; (ii) the art of politics; (iii) the rhetoric
of economics; (iv) relations with press, public, and legislative bodies;
and (v) negotiation tactics and skills. These are skills that trade
professionals typically develop on the job. The purpose of this stage
of the program is to give students a head start in their conversion
from graduate students to professional practitioners.
Integration. Integration combines three types
of courses: (i) courses in which students participate in simulated trade
negotiations, both in English and in multilingual settings; (ii) an
individual project in which a specific issue is studied in depth, allowing
students to demonstrate their expertise on the multiple facets that
go into becoming a trade professional; and (iii) courses that deal with
important current trade issues.
INSTRUCTIONAL MODULES
ITCD seeks to fill the void created by the absence of textbooks in Commercial
Diplomacy by developing Manuals, Instructional Modules, and most recently
an Online Learning Program.
Manuals. Manuals cover particular skills crucial
to the practice of Commercial Diplomacy or training in the field in
a very practical, hands-on manner. Examples include writing case studies
and policy documents, analyzing a trade issue, and working with economic
data in Commercial Diplomacy. See the Manual Index on www.commercialdiplomacy.org
for a full listing.
Teaching Modules. Teaching Modules provide Power Point
slide presentations on key subjects in Commercial Diplomacy augmented
by talking points, teaching notes, other supporting materials, and a
study guide. They represent the first step toward the development of
text books in the field. Over time these materials have been further
augmented through the application of new technologies, leading to the
development of interactive Internet modules, CD ROMs, and video presentations.
Continuous development of these modules will facilitate additional training
programs in Commercial Diplomacy at universities and other training
institutions, and the achievement of a higher level of quality in training
offered in Commercial Diplomacy, comparable to professional training
in areas such as business management and public administration. It also
contributes to professional and broad public recognition of this new
and exciting area of academic training.
Online Learning. ITCDonline leads participants
through the steps an accomplished professional in Commercial Diplomacy
must follow. This 20-module online learning program, located on www.itcdonline.com,
is broken down into six main sections: (i) Understanding Commercial
Diplomacy, (ii) The Global Trading System, (iii) Analyzing the Issues,
(iv) Communicating the Message, (v) Negotiations and Consensus Building,
and (iv) Dispute Settlement. Throughout the coursework, participants
learn how to advance the interests of stakeholders in trade policy decisions,
trade negotiations, and the settlement of trade disputes. A real-world
case study is introduced and a series of study questions and exercises
pertaining to this case study reinforce effective use of the tools of
the trade. By working through the case study, completing the related
exercises, and passing the module exams, including a 100-question final
exam, participants receive a Certificate of Completion and can immediately
apply their newly acquired skills in Commercial Diplomacy in their professional
and/or academic settings upon completion of the program.
CASE STUDIES
The case study approach, like that used in Harvard's Executive Training
programs, is effective in teaching the operational aspects of Commercial
Diplomacy. To date, very few trade studies have been written, and even
fewer have been developed from the point of view of someone responsible
for managing the trade negotiation process.
Trade case studies are built around historically important or particularly
interesting trade problems and demonstrate how they were addressed through
advocacy programs, legislation, negotiations, or dispute settlement.
They provide insights into the political and economic strategies that
were employed by industry advocates, politicians, and government officials.
Furthermore, they give both students and professionals a way to learn
from past successes and mistakes. Case studies afford the critical opportunity
to ask of past trade negotiations what went well, what did not, and
what could be improved? Such an analysis is rarely, if ever, conducted.
Distribution of these studies to current practitioners in the business
community and the government enables them to reflect on past negotiation
successes and failures and improve their performance in future trade
negotiations.
SIMULATED CASES: STUDENTS TACKLE ISSUES IN COMMERCIAL DIPLOMACY
An
invaluable exercise for anyone who wants to develop a strong set of
skills in the professional practice of Commercial Diplomacy is to analyze
a specific trade issue in depth and to create a comprehensive, coherent
set of policy recommendations for addressing that issue. Such an analytical
exercise goes well beyond simply learning about trade policy. ITCD,
through its web site, publishes some of the best such exercises developed
by students enrolled in the Master of Arts in International Trade Policy
(MAITP) program (formerly MACD) at the Monterey Institute. These exercises
give students practical experience in integrating commercial, economic,
political, institutional, legal, and domestic policy analyses of an
issue; developing a strategy to address the issue; and practical experience
in writing the papers, letters, press releases and op-ed pieces that
policymakers and business people use to advance their interests.
SIMULATION OF REAL WORLD NEGOTIATIONS, DISPUTE SETTLEMENT, PRESS
CONFERENCES, AND PUBLIC HEARINGS
Simulations
provide an opportunity for students in Commercial Diplomacy to practice
negotiation, mediation, dispute settlement, and public advocacy skills
while addressing real world issues in Commercial Diplomacy. Unlike case
studies, which are historical, the simulations are drawn from situations
on current outstanding issues. Simulations of negotiations and dispute
settlements are a core part of a hands-on-approach to professional training
in Commercial Diplomacy. They provide a nuts-and-bolts perspective that
is an excellent way to train trade professionals. Simulations teach
students how to integrate material from different areas of knowledge
such as business, economics, politics, law, culture, public policy,
and science; how to simplify and focus complex issues to the priority
issues; and how to make decisions in the face of imperfect information
and the time pressures typical in the real world. Simulations teach
not only the art of negotiation, dispute settlement, and public advocacy,
but also how to use research to pull together information relevant to
these processes. By choosing a current conflict, students have access
to a rich base of contacts, including the Internet and other research
sources, and understand first-hand how research can be used to influence
the outcome or direction of negotiations.
INVENTORY OF OPERATIONAL DOCUMENTS IN COMMERCIAL DIPLOMACY,
REFLECTING BEST PROFESSIONAL PRACTICE
The
preparation of operational documents is an essential part of professional
training in Commercial Diplomacy. It requires students to integrate
what they know with their analysis of an issue within the operational
context of the documents that are the essential tools of Commercial
Diplomacy.
Sample documents have been prepared by professionals in the field and
can be used as essential tools in teaching students how to write such
documents. They provide ideas on what such documents look like, what
they contain, and what makes them effective. Students also learn how
different countries and cultures handle similar tasks. The operational
documents available for review are as follows:
• Public policy statements,
• Strategy papers,
• Briefing memoranda,
• Press releases,
• Cables,
• Public testimony, and
• Speeches that reflect best professional practice in the field.
From time to time, the inventory of sample documents is updated to represent
current trade issues/problems from a wide range of countries and cultures.
By posting these documents ITCD hopes to cover the full range of issues
addressed by Commercial Diplomats.
GUIDE TO TRAINING AND INFORMATION RESOURCES IN THE AREA OF COMMERCIAL
DIPLOMACY
ITCD
collects and publishes information about training programs and information
resources in Commercial Diplomacy that are available on the Internet
and from other public sources. Teaching students where relevant research
materials can be obtained is an important part of a training program.
Commercial Diplomacy requires practitioners to assemble information
and analytical material on a wide range of subjects, frequently on short
notice, and the information published on www.commercialdiplomacy.org
serves as a starting point for a student’s research efforts. The
guide also provides information about training materials that are available
from other sources, thus giving instructors a wider selection of materials
from which to choose in the field.
DICTIONARIES
Commercial
Diplomacy has a terminology all of its own, and those new to the field
are often baffled by terms and concepts regularly employed in Commercial
Diplomacy writing. ITCD seeks to assist those new to the field by making
available dictionaries of some of the most commonly used words, phrases,
terms, and acronyms.
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