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Mexico, US Agree to Speed NAFTA Talks Toward August Deal

by Reuters

   WASHINGTON --

   Mexico and the United States agreed Thursday to step up talks on
   updating the NAFTA trade deal in hopes of reaching an agreement on
   major issues by August, Mexican Economy Secretary Ildefonso Guajardo
   said.

   Guajardo said he had "constructive" and "very positive" talks with U.S.
   Trade Representative Robert Lighthizer and President Donald Trump's
   son-in-law and senior adviser, Jared Kushner.

   North American Free Trade Agreement talks among the United States,
   Mexico and Canada had stalled since June when the United States slapped
   tariffs on Mexican and Canadian steel and aluminum and both countries
   responded with tit-for-tat measures on products like U.S. pork, ketchup
   and Kentucky bourbon.

   Deal by August

   Guajardo told reporters after the talks in Washington that he and
   Lighthizer agreed they would need to get to work in order to reach a
   deal by August.

   "We agree that in order to align the times and to eventually reach an
   agreement in principle, we should give ourselves the opportunity to
   move forward and try to bring this to fruition," Guajardo said.

   Lighthizer told U.S. lawmakers earlier Thursday that he expected to
   reach a deal with Mexico "some time in August" and that an agreement
   with Canada on NAFTA could follow.

   Trump has suggested he could seek a bilateral deal with Mexico, but
   Guajardo said the U.S.-Mexico talks would lead to discussions with
   Canada and "a trilateral dialogue when we get closer to the
   conclusion."

   Trilateral pact

   Canadian Foreign Minister Chrystia Freeland visited Mexico Wednesday
   and she and Guajardo insisted that NAFTA remain a trilateral pact.

   Both reiterated their opposition to U.S. calls for a "sunset clause"
   that would put the deal forming one of the world's largest trading
   blocs up for renewal every five years.

   U.S. demands for sweeping changes in the auto sector have also been a
   stumbling block.

   "The idea is to face complex issues," Guajardo told reporters Thursday
   before meeting Lighthizer.

   The talks to revamp NAFTA began in August 2017 at the request of Trump,
   who threatened to leave the pact if he did not get more benefits for
   U.S. workers.

   Election complicates talks

   The run-up to Mexico's July presidential election, where leftist Andres
   Manuel Lopez Obrador won in a landslide, had also complicated holding
   talks.

   Guajardo was joined Thursday by Jesus Seade, whom Lopez Obrador has
   chosen as his lead trade negotiator. Trump told Lopez Obrador in a
   letter that a quick conclusion to NAFTA talks would bring more jobs for
   both countries, but warned of a very different route otherwise.