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Sheinbaum says North American trade pact is not ending after Trump's remarks
Mexico's president said talks with Washington are making progress but there is no final deal, and that the US has chosen to negotiate with Mexico and Canada separately.
Key points
- Sheinbaum said there is progress but no final agreement in talks with the US.
- Washington has chosen to negotiate separately with Mexico and Canada.
- Mexico wants lower US tariffs on cars, steel and aluminium.
Mexican President Claudia Sheinbaum said on Monday that the North American free trade agreement is not coming to an end, after President Donald Trump suggested the US could do without Canada and strike a separate deal with Mexico.
“There is progress. We don’t yet have a final agreement, but we keep talking, which is what matters,” Sheinbaum told her morning press conference at the National Palace. “It’s not about ending the T-MEC,” she said, using the Spanish name for the United States-Mexico-Canada Agreement (USMCA).
At a rally in Clarksville, Tennessee, on Saturday, Trump said the US did not need Canada and repeated his wish to replace the three-way pact with a bilateral deal with Mexico.
Separate tracks
Sheinbaum confirmed that, for now, Washington has chosen to negotiate with Mexico and Canada separately. “For now, what the United States decided is to negotiate separately with Canada and Mexico; we are having conversations,” she said.
Under the treaty, the three countries decide at the six-year review whether to extend it. Mexico and Canada asked for a 16-year extension; the US proposed 10 years with annual reviews. Sheinbaum said a longer extension could still be agreed at a later consultation. “That possibility is not closed,” she said.
Tariffs the main sticking point
Mexico’s priority is tariffs. “What we want is a reduction of those tariffs and no more tariffs during the review period,” Sheinbaum said, referring to US duties on cars, steel and aluminium. In June she said cutting the 50% tariff on steel and aluminium and the 25% tariff on car exports would count as a success.
The agreement took effect on 1 July 2020, replacing NAFTA, and remains in force while the talks go on.