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I had both on the table but turned the Wehlen one down because I didn't fancy going to kill the Bluds.
Out of interest... Were you able to negotiate the Angland one?
I basically accepted it (high steel tariffs, access to farming) because I wasn't sure if the 'no' options would cause Rayne to turn down the deal completely - this wouldn't be an issue if the game didn't auto-save after the choice lol.
The Angland deal was basically a bad deal that way IMO.
backed out of wehlen when they asked for help with their genocide, didn't see a way to get a trade deal without doing that
However, to do that I had to accept higher steel prices and agricultural market access for the Agnolia trade, and I'm not convinced that was worth it, since you get a budget hit and some negative economic modifiers in exchange for a not-that-great positive economic modifier.
Seems to be the case that picking this dialogue option causes the negotiations to fail /no matter what/. You can pick literally every other choice that is a positive option for trade negotiations with Agnolia (Build the highway, put budget into policing, relaxing immigration) and if you pick that one dialogue option - poof - all up in smoke. This seems a little bit crazy to me that this one seemingly relatively innocuous dialogue option is so heavily weighted to me (unless they are trying to depict the president of Agnolia as an absolute egomaniac). Devs may wanna take a look at that.
That makes sense given the lore, and I think that if you choose that response, it would be helpful to add a line to the PM's dialogue to show that the deal is rejected due to the diplomatic error specifically. Originally, I thought this was the result of not putting more funding into police during the budgeting process; I didn't realize it was an auto-fail due to a dialogue choice.
The only other thing I can think of is: are you playing as a reformer? Are you trying to create a real democracy or only make superficial reforms? Both times I was making deep reforms that Richter loved and vetoing laws in favor of more democracy. There is mention in the text that Agnolia is a democracy and probably wants to trade with you more if you are also a democracy. But that's speculation.