Mexican and Canadian officials are optimistic they can reach a deal on the North American Free Trade Agreement with the U.S. in the next several months, even amid friction points on car production, an automatic expiration clause and President Donald Trump’s threats to impose tariffs on foreign vehicles.
The two nations will work to land an agreement before U.S. mid-term elections in early November, Mexican Economy Minister Ildefonso Guajardo said Wednesday as he and Foreign Minister Luis Videgaray hosted their Canadian counterpart, Chrystia Freeland, in Mexico City. While some of the negotiations take the shape of meetings between just two nations, and the U.S. has expressed a preference for bilateral deals, they say Mexico and Canada remain committed to a trilateral agreement.
High-level talks on NAFTA are picking up again this week after two months of limited negotiations that were marred by tit-for-tat tariff battles and diplomatic fallout. Guajardo is travelling to Washington on Thursday for talks with U.S. Trade Representative Robert Lighthizer. Combined with Wednesday’s meeting in Mexico, the bilateral gatherings are the busiest NAFTA negotiations have been since May.
Many senior Trump people expect him to impose a 25% tariff on about $200 billion U.S. in foreign-made automobiles later this year, according to various media reports. Freeland reiterated her view that slapping tariffs on automobiles from Canada based on a national security review is "absurd", adding she’s confident the U.S. will follow common sense and refrain from imposing the tariffs. Videgaray also said Mexican vehicles don’t pose a threat to the U.S.
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