In the latest episode of “Talking Trade,” Prof. Denis Leclerc of the Thunderbird School of Global Management at Arizona State University shares insights on negotiating international trade deals.
Leclerc, who teaches cross-cultural communication and global negotiations, emphasizes the importance of building trust for developing international trade. He also raises the question of whether European countries and Canada can trust the United States as a trading partner amid ongoing tariff tensions.
“If you don’t have that trust, where you know, we understand, we’re going to trade goods and services because it’s in both’s interest, both benefits … both sides are going to lose that part, that notion of trust,” he said.
He predicted exchanges between the U.S. and these major trading partners going forward will fall under the concept of “distributive bargaining,” in which negotiations are focused on dividing up a fixed amount of value.
“This is what we’re seeing right now … most global economies don’t like that. What they want is a system that’s not based on, you know, one-to-one issue,” he said. “They like to have a stable system, might not be the best system, but at least it’s stable.”
Leclerc explained that stability enables better planning, as consistent costs can be used in making business decisions and calculations. As tariffs on specific countries, industries and goods change week by week, he noted “everybody’s … pretty stressed” about the uncertainty.
“Issues like, can I trust what I’m signing now going to be good in six months from now?” he said.
The discussion ranges from the United States’ relationship with other trade partners such as the United Kingdom to resources available for companies looking to reach international markets and related opportunities.
“Do the work to make sure you understand the market, because you’re going to have to change,” Leclerc said. “Like if you want to be very practical to talk about cross-cultural issues, you might have to change your labels … you might have to do a lot of things that you are not used to.”
Talking Trade is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. President and Managing Director Sandi Siegel.
