Top Canadian and Mexican diplomats expressed optimism on Thursday that a NAFTA deal could be reached early next year and cautioned that widespread uncertainty over the future of the three-way trade agreement had slowed business investment.
Mexican sources say the plan is to hold seven rounds of talks at three-week intervals, a schedule that trade experts warned was aggressive and not easily attainable, reports Reuters.
Mexico’s ambassador to the United States, Geronimo Gutierrez, said his country wanted to get the negotiations over before a presidential election campaign ramps up next year.
Gutierrez said no country would want trade discussions during a campaign.
“That is not wise … because it becomes a Christmas tree, everybody wants to hang something onto the Christmas tree,” he told an audience at the Washington International Trade Association conference.
U.S. officials say there is growing concern within the administration, business community, and among U.S. lawmakers that the policies of President Donald Trump could embolden anti-U.S. populist Lopez Obrador.
The Trump administration released its objectives for the talks on Monday. The first round will start on Aug. 16.
Gutierrez said there was still a possibility that Trump could back out of the talks.
“In all honesty, I can’t say that risk has been completely dismissed,” he said, adding: “No one would sit down and negotiate under a strong threat that at any time he would pull out.”
Gutierrez said all three governments agreed that uncertainty over the future of the North American Free Trade Agreement had to be dealt with quickly.
“Investment decisions throughout North America have been, to the best of my knowledge, postponed because of uncertainty,” he said.
