[CTC] Guajardo back in DC, as Trump administration aims for NAFTA deal next month

[Arthur Stamoulis]

Two articles below...
 
Politico Pro
U.S., Mexico near an autos deal in NAFTA
 
By ADAM BEHSUDI
July 30, 2018
 
U.S., MEXICO NEAR AN AUTOS DEAL IN NAFTA: The United States and Mexico are in the final stages of reaching a deal on the automotive rules of origin section of NAFTA, two sources close to the talks told Morning Trade. Agreement on auto rules, a policy area that has been among the most contentious issues being renegotiated under the pact, would move the two countries forward significantly in their quest to wrap up talks by the end of next month so that current Mexican President Enrique Peña Nieto would be able to sign the new deal before he leaves office in December.

Back to Washington: A team of Mexican technical negotiators is set to arrive in Washington on Tuesday to begin work with their U.S. counterparts on the final details on autos, one of the same sources and another source told Morning Trade. Mexican Economy Secretary Ildefonso Guajardo, who met with U.S. Trade Representative Robert Lighthizer in Washington late last week, is set to return on Thursday for another round of ministerial meetings running through Friday.

Besides the progress on autos, there was little discussion last week of any of the other controversial issues, including a sunset provision and dispute settlement, one of the sources said. 

Still, Guajardo told reporters last week that nine chapters have been closed and 10 are “practically finished,” out of the roughly 30 chapters in the agreement. He said the U.S. and Mexico have agreed to tackle the remaining chapters in order from the less complex to the most complex, but vowed an all-or-nothing approach.

The two-day meeting in Washington last week came after face-to-face talks between the three top NAFTA trade officials reached a stalemate two months ago. It was also the first to include Jesús Seade, a former WTO official and Mexican President-elect Andrés Manuel López Obrador’s pick for chief NAFTA negotiator.

What about Canada? Trump has made no secret of his desire to possibly strike a deal with Mexico first and then move on to Canada. But senior Canadian and Mexican officials emphasized repeatedly last week that any final NAFTA deal would be trilateral.

But Lighthizer has indicated he’s ready to try Trump’s negotiating strategy by reaching a deal with Mexico first in order to apply pressure on Canada. The U.S. has made no public efforts to engage with Canada and there are no immediate plans for Canadian Foreign Minister Chrystia Freeland to come to Washington.

"My hope is that we will before very long have a conclusion with respect to Mexico, and that as a result of that Canada will come in, and we can compromise," Lighthizer said at a hearing last week where he expressed optimism to lawmakers that a NAFTA deal could be wrapped up by the end of August.
 
INSIDE US TRADE
This Week in Trade: Guajardo back in DC, as Trump administration aims for NAFTA deal next month

July 30, 2018 
Mexican Economy Secretary Ildefonso Guajardo will return to Washington, DC <https://insidetrade.com/node/163896> for a second consecutive week on Thursday, meeting with U.S. Trade Representative Robert Lighthizer to continue negotiations on the North American Free Trade Agreement as the Trump administration hopes to get a deal by the end of August.

But whether the deal the U.S. is seeking will involve all three NAFTA countries remains an open question. Canadian Foreign Affairs Secretary Chrystia Freeland did not attend last week’s ministerial and will be in Singapore this week for ministerial meetings held by the Association of Southeast Asian Nations.

The Trump administration has suggested working on separate bilateral agreements with Canada and Mexico, as well as striking a deal with Mexico first, as a means to pressure Canada into concessions.

Freeland and Guajardo last week insisted that NAFTA remain a trilateral agreement.

Mexico’s chief NAFTA negotiator, Ken Smith Ramos, on Sunday tweeted <https://twitter.com/KenSmithramos/status/1023749902000504832> that negotiating teams will continue working with the aim of closing “out the modernization chapters that are 80-90 percent finished.” Those chapters include customs and trade facilitation, environment, financial services, textiles, energy, digital trade, and others, he said.

Lighthizer said last week that the U.S. wants to wrap up NAFTA talks by the end of August <https://insidetrade.com/node/163850> to allow the current Mexican government to sign the deal before the next administration takes over in December.
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