Mexico will not buckle to pressure to conclude the long-stalled renegotiation of NAFTA, President Enrique Pena Nieto’s spokesman said on Thursday, but a source said the country made a new offer after the United States launched a probe exploring auto tariffs.
Differences over how to reconfigure the auto industry have slowed progress on talks to rework the 23-year-old North American Free Trade Agreement that underpins Mexico’s economy, with Mexico showing some flexibility but refusing to completely meet U.S. demands.
On Wednesday, U.S. President Donald Trump’s administration said it would examine whether car and truck imports from around the world harm its auto industry, a move that may lead to new tariffs on exports to the world’s second-largest auto market.
One Trump official said the investigation was partly aimed at yielding NAFTA concessions from trade partners Mexico and Canada.
“Mexico is not going to negotiate on the basis of pressure, Mexico is very clear about what works and what doesn’t work for us,” said Pena Nieto’s spokesman, Eduardo Sanchez.
“If an agreement is reached, it will be one that truly benefits Mexico. If these conditions don’t exist, Mexico will not move forward,” he added.
Canadian Prime Minister Justin Trudeau on Thursday also said Washington was using the auto tariff probe as a negotiating tool.
However, Mexico made a new offer on autos “showing some flexibility” on Thursday, following the U.S. announcement of the national security probe into car imports, a person familiar with the talks said. It was not immediately clear if the offer encompassed other areas under negotiation.
The three sides are in constant contact, including phone calls between ministers, and further talks were likely over the weekend, the person said.
Mexico has in recent days responded to U.S. proposals with an offer that 20 percent of any auto made in North America would be produced in high-wage areas, a Mexican industry source briefed on the talks said. It was not immediately clear in what areas Mexico had shown further flexibility on Thursday.
The United States wants 40 percent of auto content to come from areas paying at least $16 hour.
more recommended stories
Man who jumped from Periférico bridge is caught by heroic police officer (VIDEO)
MÉRIDA, YUCATAN (September 27, 2020).- An.
Merida man prosecuted for family violence against his own sister
MÉRIDA, YUCATAN.- A man was arrested.
The 1st US Presidential Debate – A Preview
PHILADELPHIA Pennsylvania, USA – As the.
Tesla, Ford Motor and Home Depot among others sue Trump’s administration
About 3,500 US companies are litigating.
On Sep. 28 World Tourism Day, take a virtual vacation!
Today is World Tourism Day, and while.
Mexico wants to pay US water debt and stay out of US 2020 presidential election
Mexico’s president is calling on angry.
Six Mayan pyramids discovered in Yucatan
INAH reports that one of the.
López Obrador fears the intellectuals of his country, assures ‘The Economist’
The Economist pointed out in an.
On Sixth Anniversary of 43 students disappearance, Mexico issues arrest warrants
Mexican authorities have issued dozens of.
Mexico will be the economy hardest hit by the pandemic: UNCTAD.
In 2020, Mexico will fall 10%,.