U.S., Mexico reach tentative trade pact

WASHINGTON — The Trump administration has reached a deal with Mexico on a rewrite of the North American Free Trade Agreement, but the two sides now need a quick buy-in from Canada, which still has significant issues with some of President Trump’s demands.

The preliminary agreement with Mexico, which includes a tightening of auto rules to increase production in North America, was struck after several weeks of talks and a marathon session over the weekend in Washington.

Trump announced the deal in the White House, and called Mexico’s outgoing president, Enrique Pena Nieto, to congratulate him on the agreement. Trump, putting Pena Nieto on a speaker phone in the Oval Office, said the agreement “makes it a much more fair bill.” He suggested renaming NAFTA as the U.S.-Mexico Trade Agreement.

Though Trump characterized the agreement as a bilateral deal that will proceed with or without Canada, Pena Nieto said repeatedly he hoped and expected Canada would come on board. Pena Nieto said on Twitter that he had spoken with Canadian Prime Minister Justin Trudeau and had “expressed the importance of (Trudeau’s) rejoining the process, with the goal of concluding a trilateral negotiation this week.”

Luis Videgaray, Mexico’s foreign minister, said that while Mexico wants Canada incorporated into the talks, the terms of the U.S.-Mexico deal would stand if for some reason Canada and the U.S. can’t work out an agreement.

In Ottawa, Adam Austen, a spokesman for Canada’s Minister of Foreign Affairs Chrystia Freeland, said she would travel to Washington on Tuesday for talks. “We will only sign a new NAFTA that is good for Canada and good for the middle class. Canada’s signature is required,” Austen said.

Mexico and the United States want to have a three-way agreement by the end of this week to allow enough time for Mexico’s parliament to ratify a revamped NAFTA before its new president takes office on Dec. 1.