Wed, 23 Jul 2025

Wed, 23 Jul 2025 How are trade deals actually negotiated?

With trade agreements making headlines, three former negotiators explain how the talks unfold.
Trade deals have become increasingly contentious under Donald Trump's presidency, with threats of higher tariffs used as leverage to secure agreements. According to former Canadian trade negotiator Jason Langrish, this approach has created a more defensive and accusatory tone in negotiations. In contrast, traditional trade talks were positive and focused on upgrading existing agreements. However, the current atmosphere is characterized by a "defensive negotiation" driven by Trump's demands. Former EU trade representative Karl Falkenberg believes that Trump doesn't understand the rules of international trade, while Canadian negotiator Wendy Cutler emphasizes the importance of building trust and connection in negotiations. The internal dynamics within negotiating rooms do matter, but external factors such as domestic opposition or sectoral interests can also impact the success of a deal. The time constraint imposed by Trump's 90-deal-in-90-days deadline has proven unrealistic, with only a few agreements announced so far. Experts believe that Trump's use of social media has hindered progress in negotiations by increasing tensions and limiting flexibility for both sides. As trade lawyers are in high demand due to the complexity of tariffs, companies are seeking advice on navigating the uncertain landscape. Meanwhile, countries like China and France have implemented measures to mitigate the impact of trade disruptions, while others are exploring alternative solutions such as substituting aluminum with other materials.
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