National Post

Trump pushes for initial NAFTA deal next week

Elections loom in Mexico, U.S. Congress

- Er Ma ic rt i n

CASH COW NAFTA IS IN PLAY, AS IS FOREIGN AID TO HONDURAS.

MEXICO CITY• The Trump administra­tion is pushing for a preliminar­y NAFTA deal to announce at a summit in Peru next week, and will host cabinet ministers in Washington to try to achieve a breakthrou­gh, according to three people familiar with the talks.

The White House wants leaders from Canada and Mexico to join in unveiling the broad outlines of an updated pact at the Summit of the Americas that begins April 13, while technical talks to hammer out the finer details and legal text could continue, according to the people. They asked not to be identified because the talks are private.

The three nations face a challenge to meet the U. S.’s goal because major divisions remain, including on the U.S. proposal for more North American content in automobile­s. The White House declined to comment on plans to announce an accord for NAFTA.

On Tuesday morning , Trump took to Twitter and reiterated a threat to pull out of NAFTA if Mexico doesn’t stop people and drugs from flowing into the U.S. from Central America. He also said U.S. aid to foreign nations, such as Honduras, could be at stake.

“The big Caravan of People from Honduras, now coming across Mexico and heading to our ‘ Weak Laws’ Border, had better be stopped before it gets there,” Trump tweeted. “Cash cow NAFTA is in play, as is foreign aid to Honduras and the countries that allow this to happen. Congress MUST ACT NOW!”

America’s eagerness to strike a deal on its biggest trade pact comes as U. S. stocks tumbled, falling in seven of their last 10 trading sessions on concern Trump’s protection­ism could spark a trade war. The White House in the past month has imposed tariffs on steel and aluminum imports, and announced plans to slap duties on Chinese goods over alleged intellectu­al-property violations.

Mexican Economy Minister Ildefonso Guajardo will travel to Washington for meetings with U. S. Trade Representa­tive Robert Lighthizer on Wednesday, the people said. Some meeti ngs could also i nclude U. S. presidenti­al adviser Jared Kushner and Mexican Foreign Minister Luis Videgaray, who have been managing the relationsh­ip between Trump and his Mexican counterpar­t, Enrique Pena Nieto, according to two of the people. Canadian Foreign Minister Chrystia Freeland will arrive Thursday for her own meetings with Lighthizer, and meetings on Friday may include all three countries, the people said.

NAFTA negotiator­s are working under some political calendar pressure, with elections in Mexico in July and the U. S. in November threatenin­g to complicate the process of reaching a deal and getting it approved by the nations’ lawmakers. Guajardo said last month that negotiatio­ns between the countries would need to be concluded before the end of April in order for the agreement to go before the current Mexican Senate and U.S. Congress.

The NAFTA process could become trickier if Democrats take control in the U. S. House or Senate, or if lefti st Mexican presidenti­al front-runner Andres Manuel Lopez Obrador wins or his Morena party picks up seats in the nation’s upper house. Those events probably would change the political calculus for a deal and the content required in a final agreement to win legislativ­e approval. Mexico’s new Senate will be seated in September, with the new president taking office in December. Pena Nieto is limited to a single six-year term.

Negotiator­s from Mexico and Canada have been expecting an eighth round of NAFTA talks to start in Washington ne xt week, though Lighthizer has pushed back against the idea and hasn’t yet sent an official invitation, according to the people. He says the three can make the most progress by holding regularly scheduled meetings between smaller groups of negotiator­s, they said.

“Canada is committed to concluding a modern, mutually beneficial NAFTA as soon as possible,” said Adam Austen, a spokesman for Freeland, while declining to comment on her schedule. Press offices of the Mexican Economy Ministry, Foreign Ministry and USTR declined to comment.

Negotiator­s t his week will try to advance on contentiou­s issues, including automotive rules, investment dispute settlement and procuremen­t, while also attempting to finish work on less sensitive topics where t here’s more consensus, such as telecommun­ications, digital trade and energy, the people said. Trump has promised to negotiate a better deal for America or withdraw.

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