Great shock from Canada and Mexico to the United States
Oct 18, 2017, 00:26
News of the talks' extension through to the first quarter of next year, from the end of this year, lifted the Mexican peso 1.2 percent after a volatile day of trading.
"The key is to remain calm and see if the American government is ready to negotiate", he told Mexican radio.
Canadian and Mexican officials rejected some US proposals introduced during the latest round, according to one government source from each country. Canada and Mexico won't stand for it.
"Frankly, I am surprised and disappointed by the resistance to change from our negotiating partners", Lighthizer said.
Describing some of the demands as "ridiculously extreme", Moises Kalach, head of the global negotiating arm of Mexico's powerful CCE business lobby, said the USA government knew that it would not be able to push them through.
Washington's demands, previously identified as red lines by its neighbors, include forcing renegotiating the pact every five years, reserving the lion's share of automotive manufacturing for the United States and making it easier to pursue import barriers against some Canadian and Mexican goods.
"In certain cases, partners who agree to TPP have actually rejected its text here", he said.
"We have a lot of trade, a lot of reasons to trade". Officials from the three countries had hoped to conclude the negotiations by year's end but now expect the talks to continue into 2018.
Lighthizer said he had hoped to have cleared chapters on digital trade and telecommunications among others but talks came to a near halt after the USA introduced several contentious provisions, including a sunset clause and a rules-of-origin proposal.
Despite the pessimism, Lighthizer said he expects an eventual agreement to attract both business and labor as well as a healthy majority of congressional Republicans and Democrats, a tall order for any legislation at the moment, nevermind a trade agreement.
Robert Lighthizer, the USA trade representative, said America's neighbors had rejected some text they had previously agreed to in the Trans-Pacific Partnership.
"We are opposed to country-specific required rules of origin", the Canadian source said.
Mexico will host the fifth round of talks in November, and additional talks will be held next year.
In the interim, the nations will take stock in the outcome of this latest round of discussions. Some experts feel he will give the mandatory six months' notice to leave NAFTA, but not actually back out.
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