The U.S. and Mexico are close to reaching a bilateral deal to update sections of the North American Free Trade Agreement, according to a source with knowledge of the talks. The final details could be wrapped up on Wednesday, depending on how talks between the two countries’ top negotiators go.
The source stressed that some big points of contention remained outstanding, and that those could still unravel the deal. A potential announcement for Thursday reported by the Wall Street Journal was possible, but remained the optimistic scenario.
The precise details of the deal were not clear, but it was known that the U.S. and Mexico were negotiating the level of U.S.-made components needed for automobiles to be designated as made in America, as well as wage levels for Mexican factory workers, among other issues.
The U.S. Trade Representative’s Office declined to comment. Mexican Economic Minister Ildefonso Guajardo said Wednesday that he hoped to have a “solution” within hours, according to Reuters.
U.S Trade Representative Robert Lighthizer meet with Guajardo in Washington this week and further talks were set for Wednesday. The current Mexican administration is under pressure to reach a deal. Mexico’s new leftist president-elect, Andres Manuel Lopez Obrador, will be sworn in December.
The Trump administration has pursued a separate deal with Mexico in recent months, having been frustrated in its earlier efforts to negotiate a new trilateral deal. Lighthizer and other administration officials have repeatedly said that they were facing greater resistance from Canada regarding their more sweeping proposals.
President Trump met with top U.S. labor leaders Tuesday to reassure them that the administration was pursuing a NAFTA deal they could support.
[Related: Larry Kudlow signals that US is nearing trade deal with Mexico]
