One of the interesting dimensions of our discussions is the

One of the interesting dimensions of our discussions is the recognition of negotiation and bargaining in intergovernmental relations. Please select one example of intergovernmental bargaining that you have participated in or are familiar with. Discuss this bargaining including the issue at hand, the participants involved, and the outcome of the negotiation.

Solution

India needs Fighter jets for the Indian Air Force. There was a contract with France to buy Rafale fighter jets in January 2016, when the French side had quoted a price of 8.6 billion Euros. After hard bargaining, India signed a deal to buy 36 Rafale fighter jets from France on 23 Sep 2016.The deal was inked in Delhi between the Indian and the French defence ministers. The deal which is worth 7.8 billion Euro ($ 8.7 billion) comes with a saving of nearly 750 million Euros when compared to the one struck during the previous Indian government. The Rafale fighter jets will be equipped with latest missiles and weapon system besides multiple India-specific modifications sought by the Indian Air Force. There is also a 50 per cent offset clause which means that Indian businesses will gain work to the tune of over three billion Euros. The deal is an example of intergovernmental bargaining.

Some examples of intergovernmental negotiations involving USA are as under:

1. The agreement between the Government of the United States of America and the Government of the Grand Duchy of Luxembourg to Improve International Tax Compliance and with respect to The United States information reporting provisions commonly known as the Foreign Account Tax Compliance Act(FATCA).

2. Similarly, the agreement between the Government of the United States of America and the Government of the State of Kuwait to Improve International Tax Compliance and to Implement FATCA.

3. The agreement between the Government of the United States of America and the Government of the Kingdom of Thailand to Improve International Tax Compliance and to Implement FATCA