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Home / World / Trump says Mexico trade deal nearby; NAFTA hurdles seen relaxation

Trump says Mexico trade deal nearby; NAFTA hurdles seen relaxation



WASHINGTON (Reuters) – President Donald Trump said on Saturday that the United States could soon reach a "major trade agreement" with Mexico, as the incoming Mexican merchant negotiator proposed possible solutions to the NAFTA energy rules and a controversial US "Sunset Clause "signaled. Demand.

Trump tweeted on Saturday morning that the United States' relationship with Mexico approaches hourly. Some really good people in the new and old government and everyone works together … A big trade deal with Mexico could happen soon! He said he and the US sales representative Robert Lighthizer were discussing one thing in the near future: "

Jesus Seade, who will serve as chief negotiator for Mexico 's next government periodic review process that protects the North American Free Trade Agreement from automatic decay unless new conditions have been agreed

Mexico and Canada have strongly opposed the US demand for sunset, which would nullify the pact if it were not done every five years A plan from which corporate groups emanate will stifle long-term investment decisions.

"It will come out. It's not what the United States has done in any way first, "Seade said of the expulsion clause in front of the US Trade Representative's office.

Seade said he and Lighthizer had begun a new approach last week Discussing the trade agreement that would have extended intervals between reviews and would provide more security for business investment.

A spokeswoman for the US commercial representative's office denied that Lighthizer had relaxed its position on the sunset clause without further elaboration. [1

9659002] The Sunset issue is one of the biggest obstacles to a NAFTA agreement as negotiators try to conclude a new NAFTA agreement by the end of August.

The United States and Mexico have held bilateral talks aimed at strengthening their NAFTA agreement Resolve differences before bringing Canada back to talks.

Seade said, d The problem of auto-sector rules is "fundamentally solved," although some aspects, including timeframes, are still under discussion.

Seade also said on Saturday that a "correct focus" on the energy chapter of NAFTA had already been essentially agreed.

Since Mexico's presidential election on July 1, the Mexico-U.S. The talks were hampered by dividing lines between Mexican inputs and outputs in energy policy.

The left-leaning Mexican president Andres Manuel Lopez Obrador's team fought against the 2013-14 call to the oil and gas sector by outgoing President Enrique Pena Nieto in the new NAFTA.

Lopez Obrador turned against Pena Nieto's energy reform, and the issue splits in his own camp. Business-friendly helpers support larger non-industry investment while his nationalist allies want to keep the oil in Mexican hands.

"Not yet"

Asked about Trump's tweet, Mexican economics minister Ildefonso Guajardo admitted some progress, but told reporters in Washington before launching another day of negotiations that the two countries are not yet there.

"Nothing is done until everything is done," he said. "Today will be an important day."

Trump initiated the reorganization of NAFTA over a year ago, complaining that the pact had benefited Mexico to the detriment of US workers and production. He made NAFTA one of his most important election campaigns.

Trump has threatened to withdraw from the pact if it is not revised to the benefit of the United States.

For weeks, the US-Mexico talks have focused on drawing up new rules for the auto industry, which Trump has put at the center of his efforts to approve the 24-year-old agreement he called a "disaster" for American workers revise.

FILE PHOTO: The flags of Canada, Mexico and the United States are shown on a lectern before a joint press conference to close the seventh round of NAFTA talks in Mexico City on March 5, 2018. REUTERS / Edgard Garrido / File Photo

Reporting by Yeganeh Torbati, David Lawder and Sharay Angulo in Washington; Edited by Leslie Adler, Matthew Lewis and Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

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