"is it not in all parties concerned to have some sort of trade deal?"

Yes, but this is a classic - perhaps the classic - problem in game theory. It is in everyone's interest, but it is in each participants interests to hold out a little longer than the others because that will give them a better deal.

There are many versions of this, but the simplest is 'Chicken'. You can win everything. Or you can lose by backing down. But given two headstrong participants you crash into each other and both get hurt. However, even then, if one of you is in an Austin 7 and the other in T-10 tank ....