Mexico says NAFTA deal unlikely this week

Mexico says NAFTA deal unlikely this week

Mexico says NAFTA deal unlikely this week

"Trudeau said that there are elements to reach a deal".

The lingering uncertainty over the future of the 24-year-old trade pact, coupled with the upcoming election, has placed pressure on the Mexican peso, Guajardo said.

Mexico's top trade negotiator said Tuesday that he doesn't believe an agreement between his country, the US and Canada will be reached by Thursday's informal deadline. "We do not think we will have it by Thursday", Mexican Economy Minister Ildefonso Guajardo told broadcaster Televisa on Tuesday.

Mexico's presidential election is also now less than seven weeks away, further complicating talks.

The currency fell to its lowest level in more than a year yesterday and some analysts believe that it will continue to decline in the lead-up to the election, which according to opinion polls, Andrés Manuel López Obrador is likely to win. "That's where we are seeking solutions that will lend certainty to what we are negotiating", he said.

Meanwhile, a statement published by the White House yesterday said President Trump had spoken with Prime Minister Justin Trudeau of Canada to address the renegotiation of NAFTA.

Don't expect a NAFTA deal by this week's supposed target date.

The talks saw the closure of three additional chapters: Good Regulatory Practices, Administration and Publication, and Sanitary and Phytosanitary Measures, but in order to complete NAFTA 2.0, negotiators will need agreement on roughly 30 chapters.

Among the issues the three sides have yet to agree on is a US proposal to include a so-called sunset clause that would allow the deal to automatically expire every five years, pending renewal.

However, the trio may be closer to agreeing on automotive rules of origin that place caps on the amount of foreign-made parts allowed in vehicles manufactured in North America, said Guajardo. Neither Canada nor Mexico wants that.

More flexibility was needed for a deal, Guajardo said.

Kenneth Smith, the head of Mexico's technical negotiating team, reiterated in a radio interview that from Mexico's perspective there are no fixed deadlines it is working towards.

"There's no question the possibility exists, we're interested and I think the United States and Canada share this view", he said, speaking to broadcaster Enfoque Noticias.

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