New round in negotiation of FTAA.

New round in negotiation of FTAA.

The negotiation of the FTAA was resumed on Thursday 26 after two months in which the negotiations were affected by diplomatic conflicts and tariff struggles, as well as by the presidential elections on July 1 in Mexico.

Ildefonso Guajardo together with Luis Videgaray, current secretaries of economic and foreign affairs respectively, traveled to Washington to discuss the negotiations with the US trade representative. UU, Robert Lightier.

In the same way, Guajardo let us see late the participation of Jesus Seade, who at the entrance of the now elected president, would take the reins to be the chief Mexican negotiator in the NAFTA meetings.

Last Wednesday, the Foreign Affairs Minister of Canada, Chrystia Freeland, met with the aforementioned Mexican leaders to discuss the terms and conditions of the TCLAN.

Within the first meetings, officials from both Mexico, EE. The United States and Canada reaffirmed the commitment to maintain a trilateral agreement, while the subsequent negotiations were more focused on projects such as the Mayan train and connection works in the Ismo de Tehuantepec with the Pacific.

There are still some key disagreements in the negotiations, such as those that regulate the regional content of cars and an extinction clause that would end the treaty after five years unless the parties agree otherwise.

These negotiations have been affected by the implementation of new tariffs imposed on steel and aluminum by President Trump, which entered into force on June 1 for Canada and Mexico. The disagreement on the part of both countries was noted and left retaliation as the threat of imposing levies on foreign motor vehicles, which would be a clear affectation because Mexico and Canada are the largest source of importation of automobiles from the United States.

Similarly, President Trump has threatened to eliminate NAFTA or negotiate individual agreements.

A few days ago, Trump mentioned that in talks held with the president-elect, Andrés Manuel López Obrador, that he seeks to do something “very dramatic but very positive” in terms of trade, although AMLO denied it later.

One of the primary objectives of the outgoing administration, is to achieve an expeditious and successful solution for the TCLAN, therefore, the Mexican government is redoubling efforts to get along with the Trump administration.

Through a letter sent to President Trump last week, AMLO insisted that NAFTA remain a tripartite agreement, so the governments of the three countries involved have said they would support a final agreement with a trilateral structure.

Eric Miller, former Canadian diplomat and distinguished trade consultant, mentioned that; “The White House’s strategy of dividing and conquering in its NAFTA negotiations is not new and argued that the NAFTA negotiations seem to be repeating the same pattern that they have followed since the beginning: the EU sets unrealistic deadlines and tries to pressure its counterparts to reach an agreement”.

The possibility of reaching an agreement in the month of August and closed-door meetings with the current governments has been opened, it was mentioned that, earlier this month, US officials, including Mike Pompeo, secretary of state, indicated his desire to reach an agreement in less than 15 days, as mentioned by Guajardo in an interview with Grupo Radio Fórmula.

There is little hope that this week enough progress will be made to finalize this agreement, and even if the negotiations conclude this year, there are key Republicans in the congress, which have indicated that the time is over for new legislators to consider voting the new agreement before it assumes a new Congress in 2019.

“It is difficult to see an agreement in August without the United States detaching itself from some of its positions,” Bill Reinsch pointed out, while in Canada it is also facing a tough battle, as Prime Minister Justin Trudeau has little positive incentive. allow it to accept what is demanded by the US government. UU Trudeau has increased his fame among voters since the Trump government imposed tariffs on steel and aluminum respectively.

Support from Canada for a review of NAFTA had increased significantly until President Trump insulted Trudeau at a meeting of the Group of Seven in Quebec and causing 70% of Canadians to support boycotting US products, according to a survey by Ipsos.

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