NAFTA glossary: Talk trade like a boss, with these negotiating terms
WASHINGTON — Negotiations start Wednesday for an update to the quarter-century-old North American Free Trade Agreement. This glossary of negotiating terms helps explain understand some of the underlying dynamics of these talks.
Demandeur: The party requesting a negotiation. In this case, it’s the U.S. The demandeur is generally considered to have weaker leverage, but that weakness is mitigated here by the U.S.’s economic might, and by President Donald Trump’s efforts to re-establish leverage with the ultimate threat: ripping up the deal.
Zone of possible agreement: Exactly what it sounds like. For example, say the U.S. wants Canada’s dairy industry opened 100 per cent to free-market competition, but would secretly settle for two per cent. And suppose Canada wants a zero per cent change, but would eventually settle for four per cent. That leaves an eventual zone of agreement between two and four per cent.
Non-agreement alternative: Your power at the negotiating table is tied to what happens if you walk away. If your Best Alternative To A Negotiated Agreement (BATNA) is the status quo, and you’re happy with it, you have power. This is Canada and Mexico’s position. Trump has moved to scramble that rosy scenario by threatening the end of NAFTA.