Second round of Nafta talks amid Trump threats
Nafta eliminated most tariffs across a region representing some 28 per cent of the global economy
MEXICO CITY: The United States, Mexico and Canada dove into the details of revamping the North American Free Trade Agreement (Nafta) at a second round of talks on Friday, amid threats from President Donald Trump to axe the deal.
After setting an ambitious “accelerated” calendar during the first round — held in Washington last month — negotiators got down to the nitty gritty business of modernising the 1,700-page deal as five days of closed-door talks opened at Mexico City’s swank Hyatt Regency hotel.
Gathering at 25 separate roundtables, one for each topic on the agenda, the delegations began hashing through subjects including e-commerce, the environment, anticorruption measures, investment and access to property markets.
The thorny issue of “rules of origin” is also on the agenda, the Mexican economy ministry said.
The United States is pushing to change these rules, including for the hotly debated auto sector.
It wants to require a certain percentage of cars’ components to be built in the US in order to remain duty-free. Few details were expected to emerge from the discussions.
All three countries have agreed to keep mum on specifics until the talks conclude after an estimated seven to nine rounds.
At the end of the second round on Tuesday, US Trade Representative Robert Lighthizer, Mexican Economy Minister Ildefonso Guajardo and Canadian Foreign Minister Chrystia Freeland will hold a series of twoand three-way meetings, then make a joint statement, Mexico said.
Trump doubled down on his antiNafta rhetoric in the build-up to the second round, saying Mexico was “being difficult” and that the United States would “end up probably terminating” the deal, which he says has been disastrous for US industry and jobs.
Mexico, which sends 80 per cent of its exports to the United States, has dismissed Trump’s threats as posturing.
But it says it has developed a Plan B just in case, focused on diversifying its export destinations.
Trump himself has signals about the deal.
On Thursday, he and Canadian Prime Minister Justin Trudeau spoke on the phone and “stressed their hope to reach an agreement by the sent mixed end of this year,” according to the White House.
Most experts say Nafta is likely to survive with modest changes — though with Trump, nothing is certain, they warn.
The Republican president may ultimately have little room to manoeuvre, however, no matter how much he hates the $64 billion US trade deficit with Mexico.
Some 14 million US jobs depend on trade with Mexico and Canada, according to the US Chamber of Commerce.
“As long as discussions on the technical issues are moving forward, it’s a good sign. We hope to separate the political issues from the technical issues,” said Moises Kalach of Mexico’s Business Coordinating Council.
Instituted in 1994, Nafta eliminated most tariffs across a region representing some 28 per cent of the global economy.