Mexico, Latam allies commit to free trade amid Trump threats

The president-elect seemed to lean on his and Trump's shared anti-establishment candidacies in the letter, saying, "I am encouraged by the fact that we both know how to fulfill what we say and we have faced adversity successfully".

Outgoing Mexican President Enrique Peña Nieto, who remains in office until December 1, has stated that his team in NAFTA negotiations would work together with Lopez Obrador's.

A safeguard tariff is one the three trade remedies allowed for under the World Trade Organization rules, which also include anti-dumping duties and countervailing duties. Seade said in an interview last month that he sees a deal as possible before the USA congressional election, and that the incoming president's team fundamentally agrees with the nation's current negotiating positions, reports Bloomberg.

Seade and Economy Minister Ildefonso Guajardo will later this week travel to Washington to revive NAFTA talks with U.S. Trade Representative Robert Lighthizer.

Mexico's president-elect Andres Manuel Lopez Obrador holds a news conference at his campaign headquarters in Mexico City, Mexico July 23, 2018.

"I believe a successful renegotiation of the North American Free Trade Agreement will lead to even more jobs and higher wages for hard-working American and Mexican workers - but only if it can go quickly". On Monday, Trump said he expected to get something worked out on NAFTA.

"It would not be my preference, but would be far more profitable for the United States and its taxpayers". This doesn't herald the beginning of a split into separate bilateral deals, but an effort by the Americans to take a different tack in negotiations. The United States refused to grant this during talks this spring and this greatly contributed to stalling talks, the official said.

"The aim was to strengthen the links between the two most important trade blocs in Latin America", said outgoing Mexican President Enrique Pena Nieto, who has spent much of the past two years mired in trade negotiations with Trump.

Trump last week repeated his threat to pursue individual deals with Mexico and Canada, and the three nations still remain far apart on major points nearly a year after the negotiations first began. It said the American and Mexican administrations should work together on trade, migration, development and security. Both Canada and Mexico are willing to agree to a review of NAFTA however.

"That change in Mexico presents us with the opportunity to restart those discussions".

  • Wendy Palmer