Commercial Diplomacy

1. JUSTIFICATION
Commercial diplomacy is one of the most important fields in international negotiation
and dispute resolution. Referring to the process of influencing foreign policy and
regulatory measures through multilateral negotiations, commercial diplomacy deals
with business and investment promotion, political decision-making and trade-related
issues. Commercial Diplomats emerge as a new class of professionals among
international negotiators due to the increasing need for policy coordination and the
new challenges of international economic negotiations.
2. COURSE OBJECTIVE
Students will develop analytical skills and research methods to understand the
complex process of policy-making affecting trade and investment, in order to
translate domestic decisions into coherent negotiation positions in diferent fora. The
purpose of this course is to analyze key issues in commercial diplomacy when
building consensus for trade and bussines negotiations: that is the case of domestic
policy (decision-making/two track diplomacy), coherence and conflict between
international organizations, special interests of developing countries, current
multilateral negotiations and trade-related issues (Intelectual Property Rights,
Investment, Competition Policy, trade in services, environmental and technical
standards).
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3. COURSE PROGRAM
UNIT 1 WHAT IS COMMERCIAL DIPLOMACY?
Objective:
Analyze the epistemic roots of Commercial Diplomacy and its connection with
international negotiation and trade law. In this module we are going to identify the
actors, schemes and challenges embedded in international trade negotiation and
business promotion.
Planned Reading:
UNIT 2 MEDIA ANALYSIS AND LOBBY CAMPAIGNS FOR COMMERCIAL
DIPLOMACY
Objective:
Business and investment promotion are important pieces of commercial diplomacy.
In this module we are going to study the organization and planning of commercial
diplomacy, especially by analyzing the structure and practices embedded in the most
active and prominent promotion agencies/institutions for international economic
negotiations.
UNIT 3 Seven tracks of diplomacy: the politics of trade and FDI (domestic
institutions and policymaking) FOREIGN POLICY MAKING
Objective:
To analyze the ideas of “two track diplomacy” and “two level games” when planning
trade negotiations. In this module we are going to identify domestic issues that shape
diplomatic strategies for bilateral, regional and multilateral negotiations. Together
with those issues, we will identify the organizational priorities embedded in domestic
institutions and foreign policy decisions.
Planned Reading:
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• VAN GRASSTEK, Craig. “The challenges of trade Policymaking: Analysis,
communication, and Representation”.
• BARTON, Jhon; GOLDSTEIN, Judith; JOSLING, Timothy and STEINBERG,
Richard. “The evolution of trade regime” chapter VI.
UNIT 4 Seven tracks of diplomacy: the politics of trade and FDI (domestic
institutions and policymaking) PART II
Objective:
To analyze the ideas of “two track diplomacy” and “two level games” when planning
trade negotiations. In this module we are going to identify domestic issues that shape
diplomatic strategies for bilateral, regional and multilateral negotiations. Together
with those issues, we will identify the organizational priorities embedded in domestic
institutions and foreign policy decisions.
To study the contribution international organizations and NGO´s for strengthening
capacity for trade negotiations, particularly in the case of developing countries.
Planned Reading:
• Petersmann, Ernst-Ulrich. Reforming The World Trading System: Legitimacy,
efficiency, and Democratic Governance. Chapter ten: Operationalizing the
Concept of Policy Space in the WTO: Beyond Special and Differential
Treatment. pp. 223-289.
UNIT 5 Lobby and Advocacy in Commercial Diplomacy
Objective:
Communication strategies and media relations are important issues in every single
international negotiation, especially in trade-related issues. The idea of participation
of civil society in decision-making processes and the relevance of transparency are
core issues in current trade negotiations. In this module we are going to identify the
characteristics of lobby for commercial diplomacy, the importance of public relations
and the main challenges for negotiators.
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Planned Reading:
• VanGrasstek, Craig. 2007. “The Challenges of Trade Policymaking: Analysis,
Communication, and Representation,” Part III (pages 26-43).
unit 6 Negotiating Market Access in Agriculture
Objective:
To identify the core issues when negotiating market access: type of rules (National
Treatment and MFN), and the two methods of definition of the scope of obligations
when negotiating trade (advantages and disadvantages): “Negative “Lists/ “TopDown”
obligations and “Positive” lists/ “Bottom-up” obligations. This module will
address the particular case of negotiation in agriculture.
Planned Reading:
• Training Module for Multilateral Trade Negotiations on Agriculture. UNCTAD
publications. 2006
 UNIT 7 Negotiating technical standards and non tariff barriers
Objective:
Domestic matters, or ‘behind the border rule-making’, acts increasingly as a non-tariff
barrier to international trade. This module analyses the extent to which international
trade negotiations and trade law seeks to achieve a balance between promotion of
international trade and protection of legitimate domestic interests. Topics include
food safety and public health, product quality and consumer protection, national,
regional and international standardization, and the impact of such measures on
developing countries.
Planned Reading:
• Deloitte, Changing China : Will China’s technology standards reshape your
industry?, available at
http://www.fast50france.com/PDF/Changing_China_2004.pdf
• Mattli, Walter, and Buethe, ‘Setting International Standards: Technological
Rationality or Primacy of Power’, World Politics, 56, 2003, pp. 1-42
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• Nicolaidis, Kalypso, and Schaffer, Gregory, ‘Transnational Mutual Recognition
Regimes: Governance without Global Government’, Law & Contemporary
Problems, 68,3, 2005, pp. 263-317
• Agreement on Technical Barriers to Trade (TBT Agreement)
UNIT 8 The role of the diplomats
Objective:
This module addresses key issues in services negotiations as one of the most
important schemes for commercial diplomacy. Explores key sectorial negotiating
challenges in economic sectors, paying special attention to the challenge of labor
mobility, key political economy constrains arising from services and market opening
as well as the competence of commercial diplomats and their role of representation
and negotiation.
Planned Reading:
• Hoekman, B.M. and Kostecki, M.M. (2001) The Political Economy of World
Trading System, 2nd edn., Oxford University Press, pp. 237-258
• Trebilcock, M.J. and Howse, R. (2005) The Regulation of International
Trade, 3rd edn, Routledge: London, pp. 347-353 and 357-376
UNIT 9 International Public Relations: Colombia as scenario of image and
reputation
Objective:
To familiarize students with international variations in IPR´s that have been the
subject of trade conflict for many years. This module focuses on the effects of IPR in
competition policies ad trade negotiations. This module will analyze the role of IPR
in for developing countries especially for the case of dispute resolution and crossretaliation.

Planned Reading:
• ABBOTT, Frederick. “Cross-Retaliation” in TRIPS: issues of Law and Practice.
International Centre for Trade and Sustainable Development (ICTSD)
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UNIT 10 Intercultural Communication within Diplomacy
Objective:
To analyze the relationship and tensions between international trade negotiations
and cultural protection (one of the main challenges that the World Trade
Organization) This module addresses the problem as it is reflected in the current
debate on Geographical Indications (GIs) especially for food and wine products in
the WTO, identifying its connection with concerns related to degradation of cultural
diversity
Planned Reading:
• BROUDE, Tomer. “ Taking `Trade and Culture seriously: geographical
indications and Cultural Protection in WTO Law. 2005
• WTO website: Geographical Indications:
http://www.wto.org/english/tratop_e/TRIPs_e/gi_e.htm
UNIT 11 Green Diplomacy and Commercial Diplomacy: building linkages for
trade and sustainable development
Objective:
To identify the current tensions related to environment negotiations and trade issues.
Analyze the connections and divergences when implementing commercial diplomacy
and environmental policy. In this module we are going to address the different
negotiation positions among state and non-state actors in a post Doha Round
context.
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UNIT 12 Diplomacy and competitiveness
This module will analyze the importance of straightening and building capacity for
trade and competitiveness. We will analyze examples of successful commercial
diplomacy in action as a strategy for power leverage in international negotiations.
UNIT 13 Concluding remarks
To make a final overview of all the discussions and workshops held during the course.
Identify the main challenges that arose in the course in order to evaluate the learning
experience.
4. ASSESSMENT
1. CASE STUDY 15% - individual
Over conceptual development through the glasses of a documented case related to
commercial diplomacy.
2. WORKSHOP 15% - teams
Discussion and construction of a case
3. CLASS PROJECT ONAAC 70% - individual
Research and analysis of a topic within commercial opportunities
Public dissertation of your findings. Both activities will be assessed.
Divided into:
-initial search 20%
-Rough draft 20%
-Final paper and presentation 30%