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Economy

Mexican predicts tough time ahead for NAFTA

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2017-09-29 13:37Xinhua Editor: Gu Liping ECNS App Download

U.S. negotiators are likely to table more aggressive proposals in the future concerning North American Free Trade Agreement (NAFTA) renegotiations, despite progress made in the third round of the trilateral talks, the Mexican business sector warned Thursday.

Canada, the United States and Mexico concluded the four-day third round of NAFTA renegotiation on Wednesday in Ottawa, Canada and later made a joint statement.

Negotiators from the three countries made progress in several areas through the consolidation of text proposals, narrowing gaps and agreeing to elements of the negotiated text, said the statement.

"Meaningful advancements were made in the areas of telecommunications, competition policy, digital trade, good regulatory practices, and customs and trade facilitation," said the joint statement.

The third round of talks also saw advances in areas including the development of small and medium enterprises.

However, the statement made no mention of some of tough issues facing the negotiators, including rules of origin and Chapter 19 for dispute resolution.

Mexico's main business association, Coparmex, said in a statement that the aggressive proposals of the United States reflected the stance of President Donald Trump.

Coparmex is part of the group of advisors of the Mexican government during the NAFTA talks. In its statement, the association recognizes the importance of NAFTA for Mexico's economic stability and development, while supporting its modernization.

"This implies that all sides are ready to make certain concessions, but ... not ... to the detriment of an economic sector, if they establish trade barriers or imply a direct impairment of regional competitiveness," said Coparmex President Gustavo de Hoyos.

Holding the same view, Mexican Finance Secretary Jose Meade said Wednesday in an interview with Mexican mess media Televisa that further tensions might well lie ahead after the third round of renegotiation of the commercial agreement.

"It is natural ... as the rounds (of talks) advance, tensions and difficulties begin to appear," said Meade.

He vowed that the Mexican government would continue working to secure NAFTA as a mechanism for further regional integration that benefits all three countries.

"We have time, (though) there will certainly be subjects that generate tensions," added Meade.

He also pointed out that as the United States has maintained its positions in the talks, Mexico as well as Canada also remained firm in its intention.

The United States, Canada and Mexico wrapped up the first round of NAFTA in August. At the end the first round, a joint statement from the three parties indicated negotiations may be increasingly tense and difficult over the coming few months.

The fourth round of talks is scheduled for Oct. 11-15 in Washington.

  

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