1. Definition of Negotiation
Negotiation is compromise, which means that the parties to an international trade dispute directly consult, communicate and discuss the content and solution of the dispute until a final agreement is reached to resolve the dispute between the two parties.
After the compromise is established, the rights fought for by the parties are determined and the rights abandoned disappear immediately. Once the compromise is established, the parties may not arbitrarily regret and request to revoke it. However, if the document based on the compromise is later found to be forged or altered, the compromise event has been determined by the court judgment and the parties were unaware of it at the time of the compromise, or the parties reached an agreement due to major misunderstandings on important disputes, the parties may request to revoke the compromise.
2. Advantages and Disadvantages of Negotiation
(1) Advantages. Resolving disputes through negotiation can best take into account the friendship between the parties. It can not only quickly resolve disputes, but also will not affect the future business relationship between the two parties. The mutual understanding and compromise between the disputing parties is the result of both parties adhering to the principle of equality and mutual trust, which will inevitably be conducive to the improvement and further strengthening of the commercial relations between the two parties. The parties are most clear about the entire transaction process, and also the environment, causes and process of the dispute. Therefore, it is most appropriate for both parties to reach mutual understanding and then reconcile on their own. In addition, resolving disputes through reconciliation can be done without publicizing it to the outside world, which can maintain the good reputation of both parties.
(2) Disadvantages. Friendly negotiation is based on equality and mutual trust between the two parties, but this foundation is difficult to determine and maintain in reality, which undoubtedly reduces the chances of negotiation. Differences in culture, consciousness, policy or law are likely to make such negotiations more difficult or impossible.