US President Points Out Possible Trade Agreement with Mexico

US President Points Out Possible Trade Agreement with Mexico

US President Points Out Possible Trade Agreement with Mexico

US President Donald Trump said on Saturday that the United States could reach a "big Trade Agreement" with Mexico soon as incoming Mexican trade negotiators signalled possible solutions to energy rules and a contentious USA "sunset clause" demand.

There's optimism that the USA and Mexico are close to sorting out their one-on-one sticking points, which would open the door for Canada to rejoin the negotiations.

Canada has sat out the most recent phase of the year-long discussions, and once it rejoined the talks, the three sides would need to work for at least another week, Guajardo said.

In Washington, Guajardo said Wednesday that he hoped to have a solution in "the next couple of hours, or couple of days".

Ujczo said because of political and procedural hurdles on the horizon in the US and Mexico, the coming week will be crucial for NAFTA's renegotiation. He says the deal has led to hundreds of thousands of lost American jobs, and he promised to either change it to be more favorable to the US, or withdraw.

Industry sources say they are close to agreeing on raising the regional automotive content threshold for tariff-free access under Nafta to about 75% from 62.5%. For the past five weeks, the talks between the USA and Mexico have largely focused on narrowing differences over the rules governing auto production in North America.

Trump said on Saturday that Washington could reach agreement with Mexico "soon" as the chief trade negotiator of Mexico's incoming president signaled possible solutions to energy rules and a contentious USA "sunset clause" demand.

Officials on both sides have insisted that talks in Washington this week between the USA and Mexico have been going well with the White House eager to make an announcement of a bilateral deal as soon as this week.

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. Despite this, many USA companies have pressured the administration not to force any change on that agreement, as their worldwide investments are now protected because of it.

Among them, he mentioned the thorny "extinction clause" proposed by the US.

Both Mexican and Canadian officials have also balked at a USA proposal for a "sunset" provision that could end the trade pact after five years, arguing that such a clause could send the wrong message to investors seeking long-term commitments.

"There's been no indication of flexibility from the U.S. on this issue", a senior Canadian official told the AFP news agency on Thursday. But we'll see how that works out.

USA and Mexican negotiators are keen to seal a new deal before Mexican President Enrique Pena Nieto hands over power to president-elect Andres Manuel Lopez Obrador on December 1.

Lopez Obrador, a leftist populist who was elected in a landslide on July 1, said Friday that the NAFTA talks were proceeding well.

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