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Trump hints US and Mexico on verge of trade agreement amid NAFTA
renegotiation
WASHINGTON, Aug 26, 2018 (BSS/AFP) – The United States and Mexico are close
to reaching a consensus over key issues stunting efforts to renegotiate the
North American Free Trade Agreement, officials from both countries said
Saturday.
The trilateral treaty, which includes Canada, has been a key target in the
US president’s aggressive trade strategy, and he has repeatedly threatened to
scrap it altogether, branding it a “disaster.”
But after a year of intense negotiations to salvage the 25-year-old pact,
the US and Mexico now appear close to a point where Canada — which had been
waiting for US-Mexican agreement on auto industry rules — can rejoin the
talks.
Speaking to reporters Saturday, Mexico’s incoming government’s negotiator
suggested the US has even eased off on demands for a contentious “sunset”
clause.
“Our relationship with Mexico is getting closer by the hour,” US President
Donald Trump tweeted.
“Some really good people within both the new and old government, and all
working closely together….A big Trade Agreement with Mexico could be
happening soon!”
On his way into Saturday’s talks in Washington, Mexican Economy Minister
Ildefonso Guajardo praised the US president’s “optimism,” but remained
cautious.
“I think, depending what happens today, we could confirm it,” he said.
“But we are still not there, as I have said before.”
“Today will be an important day,” he added. “Nothing is finished until
everything is really finished.”
Guajardo and Mexico’s Foreign Minister Luis Videgaray have been shuttling
back and forth to Washington for more than a month for meetings with US Trade
Representative Robert Lighthizer to try to iron out major bilateral stumbling
blocks, including rules for the auto market, before the end of August.
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Jesus Seade, an economic advisor to Mexico’s incoming president, Andres
Manuel Lopez Obrador, has also been participating in portions of the talks.
According to him, the US’s “sunset” proposal — to require that the pact
be reauthorized every five years — has been “taken out,” with new
alternatives under discussion.
“It is no longer what the US proposed in any way, it is an approach
focused on future evaluation and continuation,” he said.
– ‘We’re doing well’ –
Guajardo had declined on Friday to go into detail on the topics remaining
with the United States but said the agreement could happen at any time.
Aside from the “sunset” proposal, issues on the agenda were dispute
settlement mechanisms — including a proposal to exclude some industries from
settlement provisions — and the auto-market rules.
One of the White House’s goals going into the talks was to significantly
increase the proportion of US parts in the auto sector.
Seade insisted the issue of auto country-of-origin rules was “basically
resolved,” with only details yet to be finalized.
He also backed Trump’s suggestion that an agreement is not far off.
“He’s a man whose style I really like,” Seade said. “I think this reflects
reality, I think we’re doing well.”
He added that he expected the Mexican delegation to remain in Washington
until Monday or Tuesday at the least.
The United States and Mexico are keen to seal a new deal before Mexican
President Enrique Pena Nieto hands over power to Lopez Obrador on December 1.
For that to happen, the US Congress must be notified 90 days in advance.
Foreign Minister Chrystia Freeland of Canada said earlier in the week that
she was encouraged by the progress and would rejoin the talks once bilateral
discussions concluded.
Guajardo and Lighthizer began meeting at the end of July after
negotiations between the three partners stalled in May.
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