Round Two Concludes in NAFTA Talks

Trade negotiators from Canada, the United States and Mexico met for a second time Friday to discuss the North American Free Trade Agreement. The teams kicked off round two in Mexico City to discuss, among other things, digital commerce and small businesses—topics upon which consensus was possible, officials said. Talks concluded Tuesday.

The teams did not debate details, according to officials, but one union leader present said that U.S. Commerce Secretary Wilbur Ross had indicated he favored North American content of more than 70 percent in autos built in the NAFTA region.

The delegations shared proposed language for reworking the accord without yet seeking to thrash out mutually acceptable compromises, officials present said.

Trump’s attacks on NAFTA in the build-up to the Mexico City round were seen by Mexican and Canadian officials as a ploy to wring concessions, but they instead heightened uncertainty over the accord. Away from the diplomatic noise, the Mexico talks are expected to help define the priorities of each nation rather than yield major advances.

Nevertheless, Trump’s warnings to pull out of the agreement have Mexico preparing for something hard to imagine even a few months ago—life without the agreement that boosted trilateral trade to around $1 trillion annually from $290 billion in 1993.

Source: Reuters