U.S. Trade Representative Robert Lighthizer issued an official statement Friday that said the talks to renegotiate the North American Free Trade Agreement would continue, but gave no indication that any breakthrough had been made.
The statement was apparently meant to indicate that, despite the lack of any deal, the talks had not broken down.
“The current NAFTA is a seriously flawed trade deal, and the Trump Administration is committed to getting the best possible trade agreement for all Americans. The United States is ready to continue working with Mexico and Canada to achieve needed breakthroughs on these objectives. Our teams will continue to be fully engaged,” Lighthizer said.
Lighthizer’s Mexican counterpart, Economic Minister Ildefonso Guajardo, made comments Thursday to Reuters that indicated that a deal was possible by week’s end. The comments drew wide attention and Lightizer’s statement was apparently meant as a response to the lack of a deal materializing.
Guajardo was in Washington, D.C., this week to talk with Lighthizer. The renegotiations have lately been hung up over issues relating to Mexican auto production. The Trump administration has pushed Mexico to increase wages to those factory workers, arguing that cheap labor has resulted in U.S. companies outsourcing production. Mexico has resisted giving up its advantage in labor costs.
Both sides are rushing to complete a deal. Mexico has a presidential election on July 1 and the opposition party is expected to win. The White House wants to complete a deal by May 18 in order to meet the notification requirements of Trade Promotion Authority, the law covering congressional approval of trade deals.
