Redefining 'negotiation'

Background

The term ‘negotiation’ has defied definition since its inception. As far back as the early 1980s people have been asking what negotiation was supposed to mean. Integral to the meaning of negotiation is the issue about recourse payment. The confusion about correct interpretation and application of the term ‘negotiation’ is not confined to laymen like me, but has troubled some of the experts in the business.

Ole Malmqvist, a member of the UCP Drafting Group for UCP 600 says, 

“.... there has been an extended discussion about the word negotiation, which nobody can define and which only a few want to get rid of.... I'm still looking for someone who can explain to me the difference between payment and negotiation .... so far no one has been able to come up with a definition, not one I have seen, at any rate, so I doubt that anyone will be able to come up with a definition now .... I suggested that we get rid of the word negotiation.... The word ‘negotiation’ is a problem.... In short, I think we should get rid of the word ‘negotiation’ because we cannot define it and because we don't need the concept…. (contd......)

[The complete article is available in the book 'Beyond Trade Finance', published on 13-Apr-2021 by Notion Press, and available at https://notionpress.com/read/beyond-trade-finance or at https://www.amazon.in/dp/1638508666]

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[i] DCInsight, April-June 2004.

[ii] LC Monitor-Trade Services Update, Volume 11, Issue 2, March–April 2009.

[iii].Ibid.

[iv].Ibid.

[v] Ibid.

[vi] Ibid.

[vii] Ibid.

[viii] Ibid.

[ix] DCInsight, Vol 15, No 3, July-September 2009.

[x] LC Monitor-Trade Services Update, Volume 11, Issue 2, March - April 2009.

[xi] Another comment on ‘Negotiation, Trade Services Update Volume 12, Issue 3, May – June 2009.

[xii] Ibid.

[xiii] LCM-Trade Services Update, Volume 11, Issue 2, March - April 2009.

[xiv] DCInsight, Vol 15 No 3, July-September 2009.