panama canal
TRANSCRIPT
PANAMA CANAL NEGOTIATION STRATEGY
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Introduction Group 1
Nguyen Ha Dan
Tran Ngoc Minh Nhu
Truong Nguyen Hoang Khuong
Tran Hao Quang
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1 Describe Situation
+ Problem 2
Understand the Problem Fully
3 Identify Strategy
4 Result + Lessons learned
The places we will check in
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1 Describe Situation
+ Problem 4
PANAMA REPUBLIC
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Canal Panama
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Canal Panama An international waterway that links the Atlantic and Pacific Oceans.
1. Global Trade Importance
2. Military Importance
3.Panama-Pacific International Relation
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Relationship with American • 1903, November 3 Panama becomes independent. US buys the rights to build the Panama Canal from French • 1914, August 15 Canal formally opened with the transit of Steamer SS Ancon, a cargo ship. • 1977, September 7 The US and Panama sign the Hay-Buneau Varilla Treaty
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Relationship with American • 1999, December 31st Panama gains complete control over the Canal from the US • 2007, June 28th Panama and the US sign the Trade Promotion Agreement: a free trade agreement between Panama and the US
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Problem Ownership of Panama Canal • 1914 - 1999
Progress of 85 years of US military presence and influence
How can a small country like Panama had successful engage negotiation with a powerful
America?
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2 Understand
the Problem Fully 11
Common benefits
• The shortest - connecting the Pacific with the Atlantic.
• Reducing the shipping charges, increase the competitiveness of goods.
• Promote economic exchanges
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Benefits for America Length of ship Fees
~15,240 m (50 ft) 500 USD
15,240 m (50 ft) ~ 24,384 m (80 ft) 750 USD
24,384 m (80 ft) ~30,480 m (100 ft) 1.000 USD
> 30,480 m (100 ft) 1.500 USD
PC/ UMS Fees
10.000 tons 2.96 USD/ton
10.000 – 20.000 tons 2.90 USD/ton
> 20.000 tons 2.85 USD/ton
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Benefits for America
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Benefits for Panama • Revenues 1 billion/year. • Accounting for 10% of government revenues and
6% national economy. • Create 10,000 employments. • Panama became one of the most powerful
economy in the region • GDP increases 8,4% in 2013.
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Third - party
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3 Identify Strategy
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Omar Torrijos
Military Leader of Panama 1929- 1981
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Identify Strategy
He secretly tried to divided tycoon US forces to
get the financial support and able weaken rivals
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Reclaim the sovereignty over the Panama Canal is not simply legal but
also a ethical issue
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Identify Strategy
Omar may destroyed the canal if the US Senate refused to approved the treaty of returning it to Panama
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Identify Strategy
Omar may destroyed the canal if the US Senate refused to approved the treaty of returning it to Panama
Hardball tactics : Intimidation
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4 Result +
Lessons learned 26
Result After the World War II, Panama asked for the possession of Panama Canal. On 7/9/1977, Torrijos - Carter Agreement was signed by Omar Torrijos – Panama President and Jimmy Carter - the U.S.A President Panama Canal officially belongs to Panama on 31/12/1999
Review After 1945, president of Panama, Jose Antonio Remon tried to negotiate with the U.S.A to sign new agreement aimed to increase the share in tax income of Panama Canal. But he died in 1953, 2 years before the new agreement implemented.
Learned Lessons - Make counterpart’s strength to weakness (the U.S.A
democracy is a strength and it is a weakness as well) - Concentrate on a little gain if we are weaker than the
counterpart but never forget the ultimate goal (gain back the possession of Panama Canal).
- People will ask for more and gain more, if they are able to do it. Never negotiate yourself.
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