NAFTA Remains Uncertain

Canadian Foreign Minister Chrystia Freeland is heading to Washington this week in an attempt to rekindle negotiations on the North American Free Trade Agreement and seek permanent exemptions on steel tariffs.

NAFTA talks stalled earlier this month. The most troublesome points in negotiations remain the rules governing auto production and the America First provisions that President Trump wants as part of his plan to bring manufacturing jobs back to the U.S.

People familiar with the talks say the U.S. is trying to bully Mexico into accepting a deal centered on autos—referred to by some in Congress as a “Skinny NAFTA” deal—without making any concessions on the other issues.

Others say the problem is that Mexico backed out of an auto deal to which it had previously agreed. Mexico’s position in the communication has been inconsistent between the country’s foreign minister and its economy minister, who leads the negotiating team.

“It is extremely difficult to make a deal with Mexico because there appears to be a major split in the Mexican delegation between those officials who are interested in reaching an agreement and those who are not,” said one person with knowledge of the talks. “Time and again Mexican officials have indicated they’re interested in an agreement, then back away.”

Mexico’s economy minister won’t be part of the Washington talks. He is reportedly at a meeting in Paris this week.

Sources: Wall Street Journal, Brownfield Ag News