Mexico wants action on new NAFTA deal

Mexico is redoubling its efforts to reach a NAFTA agreement with the U.S. and Canada by the end of August to increase certainty for investors and take the heat off incoming President Andres Manuel Lopez Obrador, according to three people familiar with the negotiations.

A deal next month would allow Lopez Obrador to focus on his priority of domestic development, while shielding him from any potential criticism involving the outcome of the negotiations, according to the people, who asked not to be named discussing private talks. The timeline would also allow President Donald Trump to make good on his pledge to fix or abandon NAFTA.

The people cautioned that an agreement depends on the U.S. willingness to back off proposals that are opposed by Mexico, Canada and American business groups, such as an automatic expiration of the deal after five years and the end of dispute resolution panels.

Guajardo last week alluded to the possibility of an August deal. In an interview with Radio Formula, he said that in closed-door meetings with the current and incoming governments earlier this month, U.S. officials including Secretary of State Mike Pompeo indicated a desire to have a deal in 45 days.

Mexico is moving ahead in its efforts to integrate with the economies of South America and make itself less dependent on the U. S., which bought 72 percent of the nation's exports last year, according to data from the International Monetary Fund.

While Trump said last week he may prioritize a bilateral trade talks with Mexico over Canada, both the current and incoming Mexican administrations have expressed a preference to preserve a three-nation free-trade agreement.