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Canada in holding pattern as US, Mexico work on bilateral NAFTA issues

Canada in holding pattern as US, Mexico work on bilateral NAFTA issues

On Wednesday, Breitbart reported that former New York Stock Exchange President Tom Farley said expected Trump to reach a trade deal with Mexico before the midterm elections and possibly with the European Union.

But the USA negotiators do not want to apply the same guarantees to new Mexican auto plants, the officials said, as the potential threat of 25 percent tariffs would discourage new automotive investment in Mexico to serve the US market. But he is threatening Canada with auto tariffs if the USA and Canada can't forge a deal.

Trump took a different tact, however, with Canada.

Talks between the United States and Mexico over the future of the North American Free Trade Agreement were set to drag into next week, as auto industry officials said on Friday that new sticking points had emerged over President Donald Trump's threat to impose steep automotive tariffs.

At the close of the 3rd consecutive week of discussions in Washington, Guajardo said a deal was still possible by the end of the month.




Earlier Friday, U.S. officials met Mexican counterparts in Washington to resolve.

However, he acknowledged: "We still have a lot of work to do".

"It benefits the United States to continue being a major ally of Mexico, as a neighbor and as a regional economy, which combined makes us the most powerful in the world", he said.

Guajardo said negotiators were leaving some issues for last and that the sunset clause, which was "highly complex", had not yet been touched.

The U.S. leader also had kind words for incoming Mexican president Andres Manuel Lopez Obrador who takes office in December.