Trump praises Mexico, threatens Canada with auto tariffs via Twitter

13 August, 2018, 06:19 | Author: Regina Silva
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The U.S. leader also had kind words for incoming Mexican president Andres Manuel Lopez Obrador who takes office in December.

But he reiterated his threat that tariffs on auto imports could be in store for the U.S. neighbor to the north: "Canada must wait.

Asked if he could finish the U.S. -Mexico issues on Friday, Guajardo said "I don't think today but we are very close".

"Deal with Mexico is coming along nicely.

But the USA negotiators do not want to apply the same guarantees to new Mexican auto plants, the officials said, as the potential threat of 25 percent tariffs would discourage new automotive investment in Mexico to serve the US market.

The US and Mexican teams have spent a lot of time on issues involving the auto industry and Guajardo said earlier this week they had reached an agreement on the US demands that a share of vehicle components with duty-free treatment come from countries with high wages.

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Canada's foreign minister recently said the country is ready to resume NAFTA talks "as quickly and intensively as possible".

Both Mexico and Canada want to maintain a trilateral pact, while Trump has threatened to pull out and negotiate separate bilateral agreements.

A US-proposed so-called sunset clause that would kill a NAFTA deal unless it is renegotiated every five years has been another major stumbling block in the talks.

Speaking as he left a meeting with the USA trade team in Washington, Ildefonso Guajardo said the return of Canada, the third country in the trillion dollar trade zone, would depend on solving bilateral elements in "the next few days or weeks".

But the thornier issues are being left to the end, including the United States demand that NAFTA be approved every five years, a provision known as a sunset clause.

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