[CTC] Mexico Doesn’t See Nafta Talks Wrapping Up Before Deadline

[Arthur Stamoulis]

https://www.wsj.com/articles/mexico-doesnt-see-nafta-talks-wrapping-up-before-deadline-1526389121?mod=searchresults&page=1&pos=1 <https://www.wsj.com/articles/mexico-doesnt-see-nafta-talks-wrapping-up-before-deadline-1526389121?mod=searchresults&page=1&pos=1>

Mexico Doesn’t See Nafta Talks Wrapping Up Before Deadline
Mexican Economy Minister Ildefonso Guajardo says he expects negotiations to go beyond May 17
 
 
By Anthony Harrup and  Robbie Whelan 
May 15, 2018
 
MEXICO CITY—Mexican Economy Minister Ildefonso Guajardo said Tuesday that he doesn’t expect an agreement on the North American Free Trade Agreement to be reached by Thursday, although Mexico is continuing negotiations with the U.S. and Canada toward an accord.
 
“The possibility of having the entire negotiation done by Thursday isn’t easy, we don’t think it will happen by Thursday,” Mr. Guajardo told the Televisa network.
 
May 17 is the informal deadline set by U.S. House Speaker Paul Ryan if the Trump administration wants a Nafta agreement to be voted on by the current U.S. Congress.
 
Obstacles to a quick deal aren’t only rules of origin for the auto industry, which could be resolved, but also other key issues such as U.S. demands for a sunset clause for the trade pact and changes to dispute settlement mechanisms, he said.
 
Negotiators from the U.S., Canada and Mexico are scrambling to reach a Nafta deal by July, but two proposals involving autos are complicating the talks. WSJ’s Shelby Holliday explains.

Mr. Guajardo said talks are likely to continue through Mexico’s July election season, and any deal would probably have to wait until after U.S. midterm elections for legislative approval.
 
He pledged to continue negotiating until the countries “reach equilibrium,” but voiced frustration at U.S. demands for the five-year sunset clause and the elimination of dispute resolution mechanisms.
 
Those measures, he said, are meant to give countries credibility among investors, and in Mexico’s case are particularly important to guarantee the continuity of recent overhauls such as those that opened up the energy and telecom industries.
 
“Imagine asking the auto industry to change their entire business model“ to accommodate new rules of origin, Mr. Guajardo said. ”How can you then say, look, after five years, the leaders could decide not to continue with the agreement?”
 
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