Mexico Says U.S., Mexico Aim to Reach Nafta Deal by Late August
19 July 2018 - 12:08AM
Dow Jones News
By Santiago Pérez
MEXICO CITY -- Senior U.S. and Mexico officials have agreed to
step up negotiations to overhaul the North American Free Trade
Agreement with the aim of reaching a preliminary deal by late
August, Mexico's Economy Minister said Wednesday.
"It's feasible from a technical perspective, but politically,
you need flexibility from all parties," Ildefonso Guajardo, who
serves as Mexico's chief trade negotiator, said in a radio
interview.
At a White House cabinet meeting on Wednesday, U.S. President
Trump said he had a "good session" with Mexico on Nafta, which he
has repeatedly criticized as unfair. He also said the U.S. may
complete separate agreements with Mexico and Canada, suggesting
that aiming for a preliminary Nafta deal by late August is still in
question at the White House.
Mr. Guajardo plans to meet with U.S. Trade Representative Robert
Lighthizer in Washington on July 26 to address Nafta sticking
points such as content rules for the automotive sector and
mechanisms to solve commercial disputes. Canada will also join in
negotiations, Mr. Guajardo said, but he didn't provide specific
dates for a new round of talks among the three countries.
The idea would be to reach a preliminary agreement by Aug. 25,
since the U.S. Congress requires 90 days for approval and a new
administration takes over in Mexico Dec. 1, Mr. Guajardo told the
Radio Fórmula station.
Mexico's President-elect Andrés Manuel López Obrador, a leftist
nationalist who won the July 1 election by a landslide, has
expressed support for Mr. Guajardo's stance in negotiations with
the U.S. and Canada and said he would be in favor of a new deal
before he takes office.
A high-level U.S. delegation that included Secretary of State
Mike Pompeo, Treasury Secretary Steven Mnuchin and White House
adviser Jared Kushner held separate meetings in Mexico City last
week with Mr. López Obrador and departing President Enrique Peña
Nieto.
Talks to revamp Nafta stalled in mid-May. Trade tensions
increased in June as the U.S. imposed steel tariffs on Mexico and
Canada, prompting retaliation against U.S. exports.
After Mexico's presidential election, U.S. officials agreed to
relaunch talks.
In response to Mr. Trump's mention of separate deals with Canada
and Mexico, Mr. Guajardo reiterated Mexico's stance that it won't
pursue a bilateral trade treaty with the U.S.
"If the U.S. wants to move to a bilateral deal, its internal
rules would delay the negotiations too much, since a new treaty
requires congressional approval," he said.
"There is value on the Nafta label, and that's North American
integration," Mr Guajardo added.
Technically, he said, agreement is feasible in the next 45 days.
The challenge is for the sides to show political flexibility on
topics that are "intrinsically toxic to a commercial agreement," he
said.
Write to Santiago Pérez at santiago.perez@wsj.com
(END) Dow Jones Newswires
July 18, 2018 18:53 ET (22:53 GMT)
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