Officials seek ‘wiggle room’ in NAFTA talks as US deadline lapses

WASHINGTON: Mexican and Canadian officials appeared to brush off the passage of an informal deadline set by the US Congress to reach a deal on revamping a continent-wide trade pact.

Paul Ryan, the speaker of the US House of Representatives, likewise said there was ‘wiggle room’ as Thursday appeared to come and go with no finalized draft agreement – even though he had previously said American lawmakers needed to have any proposed trination deal by May 17 to have time to vote on it.

The remarks came as Washington faced a dizzyingly complex workload in waging multi-front trade battles with Europe, China and its North American trade partners.

Trump on Thursday lashed out at China and Europe, calling them “spoiled” and casting doubt on the chances of a deal with Beijing even as Chinese negotiators were in Washington for talks.

His words helped send an indecisive Wall Street lower.

Trade worries have added to fears that the bull market in US stocks since Trump’s election may have come to an end.

The talks to revamp the North American Free Trade Agreement (NAFTA) have been hung up on US demands to increase American content in cars that receive duty free treatment in the trade bloc, and to have a sunset provision, which would require the three governments to renew the treaty after five years.

The political calendar has imposed tight deadlines.

Mexico is due to hold presidential elections in July, making authorities there even less willing to appear to have conceded to Washington’s demands.

Likewise, November’s midterm legislative elections are also bearing down in the United States, leaving lawmakers in the majority Republican party with little bandwidth to absorb a deal as they fight to hold on to power.

In Mexico, officials on Thursday downplayed the importance of Ryan’s deadline.

“Today is definitely not a do-ordie date”.