[CTC] Perdue optimistic on wrapping NAFTA talks 'quickly' — at least with Mexico

Wed Jul 25 11:58:03 PDT 2018

Two articles below…

Perdue optimistic on wrapping NAFTA talks 'quickly' — at least with Mexico

By Megan Cassella, Politico Pro 
July 25, 2018

Agriculture Secretary Sonny Perdue appeared bullish today in his expectations that NAFTA talks could wrap up in a matter of weeks — although he said that might require splitting the trilateral pact into two separate deals.

“We hope that the Mexican deal can be done very quickly, possibly by the end of August," Perdue said during remarks to the media after an event outside of Washington. "Then hopefully Canada will follow suit quickly, and we can reassemble that trifecta.”

He added that the administration "certainly hopes" talks are wrapped up sometime this year.

President Donald Trump and some of his top advisers have several times — including last week <https://subscriber.politicopro.com/trade/article/2018/07/trump-again-says-us-may-reach-nafta-deal-with-mexico-first-694576> — floated the idea of breaking NAFTA into two bilateral agreements, which Trump has repeatedly said he prefers. But Canada and Mexico have rejected that notion.

Representatives from all three countries, however, have been upbeat recently on prospects of the deal reaching a conclusion this year. Although talks have been moving at a slower pace the past couple of months, Mexican Economy Secretary Ildefonso Guajardo and U.S. Trade Representative Robert Lighthizer are scheduled to sit down face-to-face in Washington on Thursday.

But as the meeting approaches, Mexico still remains in the dark as to whether the U.S.’ position has changed in any way since the two ministers' last meeting about two months ago, a source close to the talks told POLITICO this week.

Mexico and Canada have declared a handful of U.S. proposals "unworkable" — particularly on areas like automotive rules, dispute settlement and government procurement —  and the U.S.' unwillingness to make compromises led talks to stall at the start of summer.

If the U.S. positions remain unchanged, "all of the reported optimism could vanish pretty quickly,” the source said.

https://www.washingtonpost.com/world/the_americas/trump-pushes-for-speedy-nafta-renegotiation-in-mexico-letter/2018/07/24/22ede626-8faa-11e8-ae59-01880eac5f1d_story.html?utm_term=.77bca3e7f5d1 <https://www.washingtonpost.com/world/the_americas/trump-pushes-for-speedy-nafta-renegotiation-in-mexico-letter/2018/07/24/22ede626-8faa-11e8-ae59-01880eac5f1d_story.html?utm_term=.77bca3e7f5d1>
Trump pushes for speedy NAFTA renegotiation in Mexico letter

By Associated Press  
July 24, 2018

MEXICO CITY — President-elect Andres Manuel Lopez Obrador on Tuesday released a one-page letter from Donald Trump in which the U.S. president urged a speedy renegotiation of the North American Free Trade Agreement.

Trump warned there could be a much different route should the discussions drag on. In the past, he has threatened to cancel NAFTA. Representatives from Mexico, Canada and the U.S. are set to meet in Washington on Thursday to resume the trade talks.

The U.S. leader said in the letter dated Friday that he believes a successful NAFTA renegotiation will lead to more jobs and higher wages for both Mexico and the U.S.

“Both of our countries benefit from an economically prosperous North America,” Trump wrote.

Mexican Foreign Minister Luis Videgaray and Economy Minister Ildefonso Guajardo are slated to participate in this week’s talks, accompanied by Jesus Seade, a World Trade Organization veteran tapped by Lopez Obrador as his future chief trade negotiator.

Lopez Obrador, who is to take office Dec. 1, said members of his transition team will act as observers at the discussions.

After reading the letter from Trump out loud, proposed foreign minister Marcelo Ebrard expressed hope that new trade terms can be reached reasonably soon, with all three countries in the agreement.

The Trump administration lobbied in June for individual trade deals with Canada and Mexico after three-way talks fizzled.

Sticking points in the talks include U.S. insistence on a sunset clause that would force renegotiation of the agreement every five years and disputes over parameters for the automotive industry. The U.S. is angling for higher North American content in vehicles and for production to favor jurisdictions that pay more than $16 an hour, which is over five times the hourly wage for most Mexican auto workers.

Trump also wrote that he has directed his team to redouble efforts with members of Lopez Obrador’s team to address trade, migration, development and security, four priority issues for both countries.

“Like you, I believe that meeting the challenge of illegal immigration involves more than just strong border security,” Trump wrote, referring to Lopez Obrador’s professed aim of improving economic conditions in Mexico and Central America so that fewer people feel the need to migrate.

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