Canada requests NAFTA review of U.S. tariffs on Canadian solar panel products

Trump says NAFTA deal with Mexico must happen fast

Trump says NAFTA deal with Mexico must happen fast

Lopez Obrador, a progressive anti-establishment leftist, won Mexico's presidential election on July 1 with 53 percent of the vote, and is set to take office on December 1.

President-elect Andres Manuel Lopez Obrador, aka AMLO, in turn, handed Secretary Pompeo a letter addressed to President Trump with his plans to reset the relationship, focusing on trade, immigration, development and security.

Negotiations to reshape the 1994 trade accord were launched last August at the behest of U.S. President Donald Trump, who blames NAFTA for the U.S. trade deficit with Mexico, and argues the deal has caused jobs to move south of the border.

The spat over metals has diminished relations between Canada and the US, with Trump hurling personal insults at Trudeau on Twitter, and raising questions about whether the NAFTA talks can proceed. Mr. Seade, the Lopez Obrador trade adviser, told Mexican radio that he believes it's nearly inevitable a deal can be reached within months.

"I believe a successful renegotiation of the North American Free Trade Agreement will lead to even more jobs and higher wages for hard-working American and Mexican workers - but only if it can go quickly, because otherwise I must go a much different route", Trump wrote in the letter.

The office of Foreign Affairs Minister Chrystia Freeland had no immediate comment on the letter. Seade said in an interview last month that he sees a deal as possible before the US congressional election, and that the incoming president's team fundamentally agrees with the nation's current negotiating positions, reports Bloomberg. On Monday, Trump said he expected to get something worked out on NAFTA.

He said he thinks the United States and Mexico will try to reach an agreement on principle in the coming weeks, at least on autos.

Trump's tariffs on steel and aluminum imports were still casting a shadow on NAFTA talks, Morneau said.

A senior Canadian official with knowledge of the talks said a major logjam in NAFTA talks is the wage requirements the U.S.is seeking, along with a requirement for 70 per cent North American content in cars manufactured on the continent to qualify for duty-free entry to the USA market. The United States refused to grant this during talks this spring and this greatly contributed to stalling talks, the official said.

The Trump administration lobbied in June for individual trade deals with Canada and Mexico after three-way talks fizzled. According to the report, as a result of the administration's tariffs, $11 million in New Hampshire exports to Canada are targeted for retaliation, and close to $1 million in exports to Mexico are targeted for retaliation. For Mexico, the expansion is part of a push to diversify its trading partners in the wake of Trump's previous threats to pull out of NAFTA.

Paris said Obrador's message is a welcome development, "but it won't reduce Canadians' apprehensions about President Trump and his administration".

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