U.S. and Mexico strike preliminary accord on NAFTA; Canada expected to return to bargaining table

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 in front of reporters called Mexico’s outgoing president, Enrique Peña Nieto, to congratulate him on the agreement. Trump, putting Peña Nieto on a speaker 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, Peña Nieto said repeatedly he hoped and expected Canada would come on board. Peña Nieto said on Twitter that he had spoken with Canadian Prime Minister Justin Trudeau and had "expressed the importance of [Trudeau's] re-joining the process, with the goal of concluding a trilateral negotiation this week."

Luis Videgaray, Meixco's foreign minister, said at a press conference at the Mexican Embassy in Washington that although 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 in a statement: “Given the encouraging announcement today of further bilateral progress between the U.S. and Mexico, Minister Freeland will travel to Washington, D.C., tomorrow to continue negotiations. We will only sign a new NAFTA that is good for Canada and good for the middle class. Canada’s signature is required.”- More, LATimes

U.S. and Mexico strike preliminary accord on NAFTA