Mexico sees new hope of trilateral NAFTA We’ll know in 48 hours

Economy 19:23 29.09.2018

Mexico on Friday said the US Trump administration and Canada were making serious efforts to resolve trade policy differences after days of bickering, raising hopes of saving the North American Free Trade Agreement as a trilateral pact.

While details were scant, the apparent progress was enough to prompt Mexico and Washington to abruptly halt a plan to publish text of their own two-way trade deal, to give Canada more time to join.

In Mexico, President-elect Andres Manuel Lopez Obrador told reporters that Washington had made a new counter-proposal to Ottawa, adding that he would keep pushing for all three countries be part of NAFTA.

Mexican Economy Minister Ildefonso Guajardo said the delivery of the text to the Mexican and US legislatures was delayed due to a “very serious” attempt by Ottawa and Washington to reach a deal.

“In the next 48 hours we will know if we are going to get to a trilateral text or if we are going to have to put forward the text of the bilateral agreement,” Guajardo said in televised remarks to the Mexican Senate.

Guajardo said his US and Canadian counterparts “specifically requested” a delay in publishing the text.

The Trump administration had threatened to proceed with a Mexico-only trade pact as US talks with Canada foundered in recent weeks amid deep differences over Canada’s support for its dairy market and a mechanism for settling trade disputes.

The NAFTA text, either bilateral or trilateral, is due by late Sunday night to meet US congressional notification requirements to allow US President Donald Trump and outgoing Mexican President Enrique Pena Nieto to sign the pact before Lopez Obrador takes office on Dec. 1.

However, multiple deadlines have already been broken during the drawn-out attempt to renegotiate the trilateral deal since Trump demanded it be re-worked on the grounds that the 1994 NAFTA pact caused the loss of US manufacturing jobs. Lopez Obrador said there were no final deadlines in the negotiation.

A spokesman for the US Trade Representative’s office declined to comment on the status of the US-Mexico text and the talks with Canada.

Officials in the offices of Canadian Prime Minister Justin Trudeau and his foreign minister, Chrystia Freeland, did not respond to queries about the counterproposal.

Mexican go-between

Lopez Obrador told reporters in Mexico City that Trudeau asked him during a Thursday phone call “to intervene and call on the US government to reach an agreement” with Canada. “We agreed to that.”

He said that regardless of the outcome with Canada the language of the agreement between Washington and Mexico City was now final. “We are not going to re-open the negotiation. That you can be sure of,” Lopez Obrador said.

One source close to the talks said Mexican Foreign Minister Luis Videgaray, who has close contact with the White House, was also acting as an “instrumental” intermediary between Canada and the United States.

Canada’s Liberal government says it does not feel bound by the latest NAFTA deadline, and it repeated on Friday that it would not bow to US pressure to sign a quick deal.

“We are in a very tough negotiation with the United States over NAFTA … there is no deadline on this. As far as we are concerned we want a deal that is good for Canadians and that’s the bottom line,” Transport Minister Marc Garneau told reporters in Ottawa.

The importance of Canada

Some US Democratic lawmakers said on Thursday after a meeting with US Trade Representative Robert Lighthizer that they could not support a NAFTA deal without Canada.

“Canada is exceptionally important. I think it would be malpractice, both for economic and political reasons, not to have a major agreement with Canada,” said Senator Ron Wyden, the top Democrat on the tax and trade Senate Finance Committee.

Trump trumpeted the deal with Mexico as a win for Americans and threatened to close the door on Canada if it did not sign on by Sept. 30.

Trump also floated slapping auto tariffs on Canada, which could sow disarray in supply chains, take the wind out of the sails of a resurgent Canadian economy and rattle investors already unnerved by an escalating US-China trade war.

The US-Mexico text will flesh out an agreement in principle that aims to rebalance automotive trade between the two countries and update NAFTA with new chapters on digital trade and stronger labor and environmental standards.

It is expected to conform to details already released on auto rules requiring an increase in regional value content to 75 percent from 62.5 percent previously, with 40 percent to 45 percent coming from “high wage” areas, effectively the United States.

Auto industry executives say it is unlikely those targets can be met if Canada is not part of the deal, given supply chains in which parts crisscross NAFTA borders multiple times.

More light is likely to be shed on the enforcement of new labor standards and trade dispute settlement arrangements. The United States has said Mexico agreed to eliminate a system of settlement panels to arbitrate disputes over anti-dumping and anti-dumping tariffs.

The release of the trade deal text will start a months-long process for US congressional approval that will require a lengthy analysis by the independent US international Trade Commission and notification periods before an up-or-down vote.

Remembering National Hero Albert Agarunov on Memorial Day - VIDEO

News line

Horror movie to be made about Jesus’ childhood
20:02 08.05.2024
Israel's team reportedly to stay for further Cairo talks
Israel's team reportedly to stay for further Cairo talks
19:40 08.05.2024
China, Serbia sign agreement of 'shared future'
19:20 08.05.2024
VDL calls for protection against subsidized Chinese EVs
VDL calls for protection against subsidized Chinese EVs
19:00 08.05.2024
Britain says it will expel Russian defence attache
18:45 08.05.2024
'A major turning point': More than 30% of world’s energy now comes from renewables
18:22 08.05.2024
Boeing cargo plane forced to land at Istanbul without front landing gear - VIDEO
Boeing cargo plane forced to land at Istanbul without front landing gear - VIDEO
18:03 08.05.2024
Did Netanyahu Trash Ceasefire Deal Agreed by Hamas to Continue War? - ANALYSIS
17:49 08.05.2024
Tax Evasion Amid War: Economic Struggles in Ukraine
17:33 08.05.2024
US Ramps Up Search for Alternative to Ukraine's Zelensky - Russian Intel Service
17:19 08.05.2024
Passport System Failure Sparks Chaos at UK Airports
Passport System Failure Sparks Chaos at UK Airports
17:08 08.05.2024
Azerbaijan's Peace Initiative at COP29: Insights from Tofig Abbasov
17:00 08.05.2024
Israel should start peace talks with Hamas - White House Spokesman
Israel should start peace talks with Hamas - White House Spokesman
16:46 08.05.2024
Insights into Pashinyan's Moscow Visit: Expert Analysis
16:27 08.05.2024
President Ilham Aliyev invites his Bulgarian counterpart to COP29
16:00 08.05.2024
Foreign Ministries of Azerbaijan, Israel hold consultations
15:45 08.05.2024
First lady of Bulgaria gets acquainted with dishes of Azerbaijani national cuisine
First lady of Bulgaria gets acquainted with dishes of Azerbaijani national cuisine
15:30 08.05.2024
Russian MFA: Trilateral statement remains relevant
15:17 08.05.2024
Kremlin expert: This will lead to the fact that ties between Armenia and Russia will begin to break down - VIDEO
15:00 08.05.2024
Bloomberg: Russians Are Coming to Terms With Putin’s War in Ukraine
14:27 08.05.2024
Rumen Radev: Baku-Sofia regular flights will resume
Rumen Radev: Baku-Sofia regular flights will resume
14:12 08.05.2024
President: The trade turnover between Azerbaijan and Bulgaria has multiplied in recent times
14:00 08.05.2024
Peskov: Putin-Pashinyan meeting expected by both sides
13:47 08.05.2024
Bulgarian president: 'Solidarity Ring' initiative important for energy supply of entire region
13:38 08.05.2024
President Ilham Aliyev: Azerbaijan's gas exports to Bulgaria are increasing year by year
13:22 08.05.2024
Azerbaijan and Bulgaria sign declaration on strengthening strategic partnership
13:07 08.05.2024
First ladies of Azerbaijan, Bulgaria hold meeting
12:31 08.05.2024
President Ilham Aliyev's expanded meeting with President of Bulgaria starts
12:19 08.05.2024
Remembering National Hero Albert Agarunov on Memorial Day - VIDEO
12:00 08.05.2024
PM Ali Asadov meets Chairman of Foreign Relations Committee of Turkish Parliament
PM Ali Asadov meets Chairman of Foreign Relations Committee of Turkish Parliament
11:40 08.05.2024
Azerbaijan to jointly produce weapons with Slovakia
11:24 08.05.2024
Umud Mirzayev Reminisces on Shusha: 'I Witnessed Those Days
11:10 08.05.2024
3rd Tashkent International Investment Forum: A Success Story
11:00 08.05.2024
Elchin Amirbayov and Israel's Foreign Ministry official mull situation in South Caucasus, Middle East
Elchin Amirbayov and Israel's Foreign Ministry official mull situation in South Caucasus, Middle East
10:55 08.05.2024
EU 'has become too ambitious and this is harmful for us', Slovak PM says
10:43 08.05.2024
EU countries to agree on 14th package of sanctions against Russia by July
EU countries to agree on 14th package of sanctions against Russia by July
10:35 08.05.2024
PM Ali Asadov meets Chairman of Foreign Relations Committee of Turkish Parliament
PM Ali Asadov meets Chairman of Foreign Relations Committee of Turkish Parliament
10:30 08.05.2024
Amb. Elin Suleymanov: Abandon the doom and gloom narrative around Azerbaijan and Armenia
10:23 08.05.2024
Amirbayov: Armenia agreed that Azerbaijan would host COP29 as a result of confidence-building measures
10:14 08.05.2024
Azerbaijani Documentary 'A Woman Seeking Death' Secures Polish Film Institute Support
10:00 08.05.2024
Hamısı