Academy of Economic Studies of Moldov

Faculty of International Economic Relation

Department of International Busines
I

Individual wor

on the Topic: “International Negotiation of The Brexit Deal”

For the course Negotiations and Ethics in International Busines

Elaborated by : Turcu Alexandra

Bagrin Sandra
Craciun Valeria
Group EMREI-203eng

Evaluated by Zorina Shishcan, Ph. D. Hab

Chisinau, 202

Structure/CONTENT:

General characteristics of an international negotiation process: problem or conflict described:

• Prenegotiation Stage: international negotiation teams’ composition, brief characteristics of
each member; creation of the Folders (a few of them, briefly); elaboration of the Strategy for
negotiation; setting place and time of the future negotiation; anticipating cross-cultural
differences and modes of coping with them.
• Proper Negotiation stage: Negotiation schedule, room layout and position of negotiators at
the bargaining table; follow-up of the role playing (tactics used, outcomes received in the
form of an agreement like “word of hour” or a written agreement/contract or resolution of

 the conflict/particular solution agreed about etc.); cross-cultural problems appeared in time
of negotiations, solutions found.
• Post-negotiation stage: The modes of the implementation of the agreement agreed about.
• References (the sources used for making the work done, including the reference to personal
observations if a case)

General Characteristics

Negotiations are a way of nding solutions to con icts of antagonistic interests without the use of
violence. In a democratic society, a nonviolent resolution is the appropriate form of dispute
management. The signi cance of political negotiations has become increasingly apparent from
processes and tendencies such as increasing interdependence in the exchange of goods, information,
and persons in a world of globalization, the trend towards the expansion of democracy; the tendency
of peaceful interaction between Western governments; and the decline of violence between them
that characterized the second half of the last century. All these developments, together with
longstanding practices within and between states, point to the growing importance of negotiation as
a political and economic tool. DAs we come to the end of three and half years of often tortuous
negotiations over, rst, the terms of the UK’s departure from the EU and, second, the future
relationship, we’re still none the wiser as to whether we can get a deal over the line by December 3

On some days we see positive signals from both camps, with a potential deal imminent, but on
others there appear to be near-insurmountable obstacles — in particular, the extent to which
companies can receive government nancial support and the access EU coastal countries and their
shing industries will have to UK waters. The latest news is that the EU is under pressure from the
French government to tighten up the state aid requirements for the UK

What is clear, however, is that the whole process has been a mixed bag, if it’s analyzed using the
principles of negotiations we teach in our executive programs at Oxford. While we aren’t privy to
what’s going on behind closed doors, it’s still possible to make some general observations as to
where certain negotiation techniques have been used well and others have not



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 We recognise how important it is to provide business, the public sector and the public with as much
certainty as possible. So ahead of, and throughout the negotiations, we will provide certainty
wherever we can. We will provide as much information as we can without undermining the national
interest. “
On November 14, Britain’s Prime Minister Theresa May and EU commission President Jean-
Claude Juncker presented a 585 page withdrawal agreement.  This is over two years after the British
voted to leave the EU (June 23, 2016) with a slim margin (51.9 percent)

Even though Brexit secretary Dominic Raab (who had just taken over from David Davis) resigned
over the withdrawal agreement, the cabinet passed the agreement. To be rati ed, it has to face
Parliament. The vote was scheduled for December 11 but May postponed it to mid January 2019, as
she was aware of its slim chance of passing: the entire opposition and even part of her own party are
against it. Many think it is a bad deal for the UK

Crucial negotiation points include the ‘divorce bill’, around $45bn. and the immigration laws of EU
and UK expats. A point of erce discussion within the UK is how to go about the 310-mile land
border between Northern Ireland and the Republic of Ireland (still a EU member) – a national
trauma

If Parliament rejected the deal, May would have three weeks for a second attempt. May warns that a
no deal option would lead to a long transition period with the EU still ruling. And if May were
removed through either a no-con dence vote in parliament with subsequent general election or
because her own party replaced her, there could be a re-negotiation with the EU

But what options are on the table for the negotiations? There could be a “hard” Brexit, with no deal
and the rules of the World Trade Organisation coming into effect, the minimum trade imperatives,
with tariffs on goods and border checks. London’s role as a nancial hub would be at risk

The crucial negotiation mistakes, however, was made by former UK Prime Minister David
Cameron, who had decided to hold the Brexit referendum. He wanted to re-negotiate a "special"
status with the EU after the referendum. If he wanted to change the terms of the EU-UK relations,
he should have done so before scheduling the Brexit or before the referendum. This would have
given him great leverage as the EU would have been very generous to keep the UK a member state
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 Then there would be the “Norway option”. The Scandinavian country is a member of the single
market and agreed the free movement of the people. However, Norway has never been a member of
the EU

The EU has to be a tough negotiator because it cannot let this be a precedent for others who only
want the perks of membership

Is there a chance for the UK to just stay after all? The European Court of Justice decided on
December 10 2018 that the UK could cancel Brexit. Certainly, the EU would do anything to keep
the UK in the Union

The Strategies for negotiation

Considering all the circumstances and problems encountered so far, it was decided to approach
the negotiation with some basic, but very important strategies:
1. Positive Thinking – Many negotiators underestimate themselves because they don’t perceive
the power they have inside of themselves accurately. In most negotiating situations, you
have more power than you think. You must believe that the other party needs what you
bring to the table as much as you want the negotiation to be a success. Also, be sure that
that positivity is visible during the negotiation. Be aware of the tone of your voice and non-
verbal body language while interacting with the other party.
2. Preparation – Information is crucial for negotiation. Research the history, past problems or
any sensitive points of the other party. The more knowledge you have about the situation of
the other party, the better position you’ll be in to negotiate. The most important part of
preparation is Practice! The study of negotiation is like golf or karate. You have to practice
to execute well.

3. Be articulate & build value – This is key, and it’s what separates the good negotiators from
the masters. When you have a strong belief in what you’re negotiating for, you will shine.
Become a master at presenting your thoughts and ideas so that others see the value. A tip on
how to do that well:
.

 • Be direct when presenting a situation. Be clear about what is expected. Discuss ways to
apply how it can happen.
• Don’t simply talk about what needs to happen. Discuss the consequences – how your
solution will be beneficial to the other party.

4. Give & Take – When a person gives something up or concedes on part of a negotiation,
always make sure to get something in return. Otherwise, you’re conditioning the other party
to ask for more while reducing your position and value. Maintaining a balance will establish
that both parties are equal.

Setting place and tim

The conference started in the Parliament of United Kingdom. During 2017, 2018, and 2019
representatives of the United Kingdom and the European Union negotiated the terms for Brexit, th
planned withdrawal of the UK from the EU. These negotiations arose following the decision o
the Parliament of the United Kingdom to invoke Article 50 of the Treaty on European Union
following the UK's EU membership referendum on 23 June 2016
Negotiations formally opened on 19 June 2017, when David Davis, the UK's Secretary of State for
Exiting the European Union, arrived in Brussels to meet with Michel Barnier, the Chief Negotiator
appointed by the European Commission. They began to discuss a withdrawal agreement, including
terms of a transitional period and an outline of the objectives for a future UK-EU relationship. In
November 2018, European Union of cials announced that they would accept no further
negotiations or changes before the UK legally leaves

Here are some ways we plan to deal with cross-cultural differences:

• Maintain etiquette.
• Avoid slang.
• Speak slowly.
• Keep it simple.
• Practice active listening.
• Take turns to talk.
• Write things down
• Avoid closed questions.













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 Proper Negotiation Stage

Principle #1: Build strong relationships ahead of time. During
negotiations, understand what your counterpart cares about

Flash back four years ago, and you’ll remember David Cameron shuttling between European
capitals trying to renegotiate the terms for Britain’s continued EU membership, which he would
take to the British public in a referendum. While Cameron still backs what he achieved, it was clear
to many that it wasn’t enough, particularly on the issue of free movement

Where did it go wrong? First, the UK government should have formed durable alliances in Europe
much earlier; this kind of advance relationship building is one key to successful negotiations. The
last-minute shuttle diplomacy proved to be too little, too late. Second, the EU failed to put itself in
the UK’s shoes (another negotiation principle). Had they been even somewhat exible over freedom
of movement, they might have been able to keep one of Europe’s largest and most important
countries within the EU family

Principle #2: Pay close attention to process

In negotiations, it’s nearly impossible to overestimate the importance of controlling the process.
The EU did just that in the rst stage of the negotiation, the UK’s negotiated withdrawal from the
EU. By insisting that the issues important to the EU  — the Northern Irish backstop, the rights of
EU and UK citizens, and the UK’s nancial liabilities — be agreed upon before discussions about
the future relationship were even entertained, they gained an important victory in phase one

As a result of that early EU success, the UK has had less leverage in phase two (negotiating the
future relationship). At this late stage in the negotiations, the UK could really do with having an
issue like future nancial commitments to use as leverage

Principle #3: Remember the stakeholders who aren’t at the table

In negotiations, communicating with those who aren’t at the table is every bit as important as
communicating with those who are. There is a vast array of parties who have a stake in these
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negotiations: individual European countries, parliamentarians on both the UK and EU sides,

industry groups, and the general public on both sides of the channel

Again the picture here is mixed. EU lead negotiator Michel Barnier has been diligent about
providing updates on the status of the negotiations to member countries, European ambassadors,
and the European Parliament. The same can’t be said in the UK, where industry groups have been
kept in the dark

Many will remember two years ago when, in response to business concerns over a no-deal Brexit,
our then-foreign secretary, now prime minister, said “F*** business.” Relationships with important
stakeholders haven’t improved a great deal since. Of course, the biggest stakeholder on the UK side
is the British public. Has the UK had an honest conversation with the population about the dif cult
trade-offs which will need to be made in the negotiation? The answer is no. Because they’ve never
leveled with the public about contentious issues, it will be all the more dif cult to get buy-in for the
deal and for concessions that need to be made

Principle #4: Avoid self-imposed deadlines

While setting deadlines can help to focus minds and inject a sense of momentum into negotiations,
I’ve never been a fan. More often than not, they result in ill-thought-out, sub-optimal deals. That
was the case with the Withdrawal Agreement, where the UK signed on to a deal that they had to
start unravelling just a few months later, and is likely to be the case with the future trade
relationship, which has ridiculously tight deadlines. Already, it’s likely that the European Parliament
will have to convene between Christmas and New Year’s if there is a deal to be rati ed

Principle #5: Behave like a trusted partner – or pay the price

Negotiations, particularly complex negotiations, are built on a bedrock of trust and respect and an
understanding that once deals are agreed and signed, there’s no going back unless both sides decide
to renegotiate
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 So the UK government’s decision to draw up legislation – the Internal Market Bill – that overrides
the Northern Ireland element of the Withdrawal Agreement and also breaks international law was
not a good moment (though it may not be terminal)

The EU is now being more demanding about the governance and enforcement mechanisms of a
future trade deal, in order to ensure that the UK sticks to its word next time around. At this writing,
it looks as if discussions over the legal structures surrounding a future trade deal have gone
backwards. The Internal Market Bill contributed to this deterioration

Principle #6: Don’t let political pressure get in the way of pragmatic

solutions

The sheries industry won’t thank me for saying this, but it currently contributes only 0.1% to the
UK economy and a similarly low gure across Europe. Compare this to services (over 75%) and
manufacturing and production (21%) in the UK. Yet it’s quite possible that a future trade deal could
collapse over sheries

While the right to control one’s own waters has strong symbolic importance and is an issue of
supreme importance for many Tory MPs, the really great negotiators tend to put pragmatism before
politics and look at the negotiation holistically. Let’s hope that the EU and UK negotiators take that
viewpoint in the coming days and weeks

It’s Time To Be Creativ

If I was to make a prediction, I’d say we are more likely than not to have some kind of bare bones
trade deal at the end of the year, with many months of future negotiations to come. After the year
that Boris Johnson has had, and the worst economic crisis in 300 years, can he really afford a no-
deal outcome, which — while unpalatable to the EU — is even more unappealing to the UK? (The
EU market is eight times the size of the UK.

Yet in order to reach agreement, both sides need to be proactive and to take the initiative. When
Boris Johnson says things like “the likelihood of a deal is very much determined by our friends and
partners in the EU,” it doesn’t help anyone. There is a need for creativity on both sides
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 Negotiation impasses can sometimes be broken by heads of state or other senior people outside the
negotiating teams speaking directly to one another to help regather momentum towards a deal. We
are already seeing this in telephone conversations between Prime Minister Boris Johnson and
Ursula von der Leyen, President of the European Commission. This was also the case in getting the
Withdrawal Agreement over the line when the Prime Minister Boris Johnson met in private talks
with the then Irish Taoiseach, Leo Varadkar, to agree on some outstanding issues relating to customs
and the Irish border

It’s not too late to learn from the mistakes of the past, but time is running out

These are the seven rules

1. Avoid leaking information

2. Avoid leaking information

3. Avoid ultimatums

4. Listen more than talk

5. Move from rhetoric to actionable idea

6. Get independent/neutral help

7. Be the rst to cooperate (give a concession

8. Work on creating personal connection

Post-Negotiation Stage

Negotiations on the future partnership between the EU and the UK started on 2 March 2020. On 24
December 2020,  the EU negotiators reached an agreement with the United Kingdom  on the
terms of its future cooperation with the European Union
The agreement applied provisionally from 1 January 2021
On 29 April 2021, following the European Parliament's consent given two days earlier, the Council
adopted a decision on the conclusion of the EU-UK trade and cooperation agreement and the





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 security of information agreement. This was the last step for the EU in the rati cation of the post-
Brexit deal. Both agreements entered into force on 1 May 2021
The deal is far from the nished article: Britain and the EU will carry on talking for months or years
to ll in the gaps in the treaty, including on nancial services and rules to allow professionals to
work across borders. But Johnson emerged claiming to have struck a “cakeist treaty” — a reference
to his belief that it was possible to have one’s cake and eat it: sovereignty and EU market access
Is there a chance for the UK to just stay after all? The European Court of Justice decided on
December 10 2018 that the UK could cancel Brexit. Certainly, the EU would do anything to keep
the UK in the Union

Name/Surname Angela Merkel

Position Chancellor of Germany
Gender Female
Education and Professional University of Leipzig
Training
Family status Single
Name/Surname Boris Johanson
Position Prime Minister of the United
Kingdom 
Gender Male
Education and Professional Balliol College (1987),
Training European School Brussels
Family status Married

THE MAIN REPRESENTATIVES OF THE BREXIT DEAL

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 As chancellor of Europe’s largest economy, Germany, Angela Merkel has used her in uence in the
Brexit negotiations. The leader of the center-right Christian Democratic Union supports European
stability and unity and believes that the EU and U.K. have shared values. She has stated that “it
would send a bad signal to the world if a Brexit trade deal could not be reached.

Emmanuel Macron has served as president of France since May 14, 2017. He describes himself as a
centrist who is “ardently pro-Europe.” He has joined with German Chancellor Merkel in strong
support of EU unity in Brexit negotiations. While continuing access to U.K. shing waters is a
major political issue for several EU countries, it is particularly important in France. Macron
considers preservation of French shermen’s access to U.K. waters, although a minor factor in the
French economy, a critical domestic issue for the 2022 election

Former Belgian Prime Minister Charles Michel was elected president of the European Council on
December 1, 2019. His responsibilities include chairing European council meetings and
representing the heads of states or government collectively on foreign and security issue

Ursula von der Leyen has served as president of the European Commission, the politically
independent executive arm of the EU since December 1, 2019. She has undertaken a visible role in
Brexit negotiations as the December 31, 2020 deadline nears. She has dealt directly with Prime
Minister Johnson and reached the agreement with him on December 13, 2020, that extended the
EU-U.K. negotiations

As the European Commission’s chief negotiator since 2016 and leader of the EU trade negotiations
with the U.K since 2020, Michel Barnier has been given authority to negotiate for the entire bloc. A
French politician, he was rst elected to the French National Assembly in 1978 and from 1993 has
held multiple cabinet positions in the French government. Since 1999 he has held senior positions at
the European level, including holding the position of Minister of Agriculture and Fisheries from
2007 to 2009.  He has emphasized the risk to the U.K. of leaving the EU without a deal and
maintained a strong, united position for the EU

Keir Starmer was elected the Leader of the Labor Party and Leader of the Opposition in April 4,
2020. A former lawyer, he has been a member of Parliament since 2015. He was appointed to the
Shadow Cabinet, rst as Shadow Immigration Minister in 2015, then changing to Secretary of State
for Exiting the European Union in 2016 after Brexit, which he opposed. Starmer has called for
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 reform of EU free movement rules, while preserving the free movement of labor, and advocates a
revision of U.K. immigration rules. Since the U.K. withdrawal from the EU, he has criticized the
Tory leadership for failing to achieve a satisfactory trade agreement with the EU.

Baron Frost, a member of the British House of Lords, is the U.K.’s chief Brexit negotiator. A former
civil servant with a long diplomatic career, he has focused on Britain’s interest in obtaining a free
trade agreement with the EU and suggested that the EU should approach the negotiations with more
“realism.” Baron Frost has emphasized the Britain’s status as an independent, sovereign country, in
line with Prime Minister Johnson’s insistence on the U.K.’s rights to control its trade relations

Boris Johnson became prime minister on July 24, 2019, after three earlier versions of a Brexit
agreement proposed by Theresa May were rejected by parliament. The former mayor of London,
Johnson has persisted as a vocal proponent of Brexit in the past few years

After failing to meet an October 31, 2019 deadline for Brexit, he forced a new general election in
December of 2019. In it he and his party were re-elected by a wider margin than many expected. A
new Brexit deadline was set for Jan. 31, 2020. On that date, the UK left the EU in accordance with a
Withdrawal Agreement that maintained the open Irish border and provided a transition period
ending Dec. 31, 2020, for the negotiation of an EU-U.K. trade deal
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