MEXICO CITY, Mexico (Reuters) — Negotiations in Mexico to update NAFTA have not made much progress on tough U.S. demands that could sink the 1994 trade pact, but the current round of talks is progressing, participants close to the fifth round of talks told media on Monday (November 20).
One sticking point that has emerged in the talks is rules of origin.
With the details of the US proposal and Mexican and Canadian counter-proposals to emerge, Canada and Mexico say the proposed new rules of origin from the US are unworkable and would damage the highly-integrated auto industry.
Canada’s Steve Verheul told media on his way to talks that Mexico City and Ottawa have “common interests” on a number of issues.
The U.S. administration has made demands that the other members say are unacceptable, such as a five-year “sunset” clause and tightening so-called rules of origin to boost the North American content of autos.
The head of the international negotiating arm of Mexico’s CCE business lobby said there has not been a willingness towards progress from the US team on counter-proposals that have been put on the table by Mexico.
“Canada and Mexico are working very closely together, yes. We have a lot of issues in common. We have a lot of interests in common.” Head of Canadian NAFTA Negotiating Group, Steve Verheul, said.
“The Mexican team is putting up proposals and counter-proposals on the table but the USTR (United States Trade Representation) is not necessarily responding. There are some chapters that could really be advanced or closed but there has not been this willingness to progress from the American team. This is one of the important things that has been reported to us,” Head of the International Negotiating Arm of Mexico’s CCE business lobby, Moises Kalach, said.
Time is running short to seal a deal by the deadline of end-March 2018. Officials say next year’s Mexican presidential election means talks after that date will not be possible.