[CTC] Sources See Obama Pressing For TPP Auto Flexibility In Call With Pena Nieto

[Arthur Stamoulis]

Inside US Trade

Sources See Obama Pressing For TPP Auto Flexibility In Call With Pena Nieto


Posted: September 23, 2015 
President Obama and Mexican President Enrique Pena Nieto discussed the need to swiftly conclude the Trans-Pacific Partnership (TPP) negotiations in a phone call Wednesday (Sept. 23), a move that sources following the talks interpreted as the U.S. putting pressure on Mexico to show flexibility on the key outstanding issue of the automotive rules of origin.

A White House readout of the call released Wednesday made clear that it specifically focused on the TPP negotiations and the need to finish them quickly, although it did not mention the auto issue. 

“The two leaders agreed on the importance of further deepening the United States-Mexico economic relationship to ensure both countries continue as leaders in the global economy,” the White House said. “More specifically, they discussed the status of the Trans-Pacific Partnership negotiations and the importance of bringing the negotiations to a swift conclusion.”

The call came a day after TPP negotiators from the U.S., Mexico, Canada and Japan wrapped up talks in San Francisco <http://insidetrade.com/node/150006> on the automotive rules of origin without reaching a deal. 

But sources said enough progress was achieved in the meeting so that the four countries will try to reach an agreement on this issue at the TPP ministerial meeting next week in Atlanta, where parties are seeking to conclude the broader talks.

Sources said last week that the U.S. and Japan were pushing to set the date for the ministerial meeting as a way to put pressure on Mexico in the auto talks. The U.S. has not yet publicly announced the ministerial, which is slated to take place late next week following a chief negotiators meeting, but is expected to do so in the coming days.

At the July ministerial meeting in Maui, Mexico and Canada rejected as too liberal the automotive rules of origin that the U.S. and Japan had previously agreed upon bilaterally. The four parties began discussing potential tweaks <http://insidetrade.com/node/149878> to the U.S.-Japan deal in an initial meeting on Sept. 10-11 in Washington, and continued those talks in San Francisco.
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