Mexico to host second round of NAFTA talks as opening round concludes

Source: Xinhua| 2017-08-21 12:32:47|Editor: Xiang Bo
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MEXICO CITY, Aug. 20 (Xinhua) -- Mexico, Canada and the United States on Sunday wrapped up the first round of negotiations to update the two-decade North American Free Trade Agreement (NAFTA), with Mexico set to host the second round of talks on Sept. 1-5.

At the end of the meeting in Washington, all three countries stressed "the importance of updating" the agreement's trade rules. The pact has been in effect since 1994.

The talks started on Aug. 16 and aim to tackle some 30 topics, including rules of origin, wages and Chapter 19 on settling disputes, which the United States wants to scrap, while Canada and Mexico want to preserve.

The Trump administration says Chapter 19 is not effective in resolving disputes about measures to counter subsidies.

In the initial round of renegotiations, Canada and the United States also broached Mexico's low wages, which they say constitute unfair competition by luring away corporations and stealing jobs from its northern neighbors.

In his opening statement at the first round of talks, U.S. Trade Representative Robert Lighthizer said "at least 700,000 Americans have lost their jobs due to changing trade flows resulting from NAFTA."

He called for, among other things, "strong" labor provisions and rules of origin, especially on autos and auto parts, so they include "higher NAFTA content and substantial U.S. content."

The current rules of origin allow autos comprising up to 62.5 percent regional parts to be sold duty free in North America.

Mexican Economy Minister Ildefonso Guajardo has said talks were expected to last through the end of the year and possibly into the beginning of the next.

Canadian Foreign Minister Chrystia Freeland said prior to the talks that her country aims to introduce environmental protection into the accord, as well as labor protections and improving mechanisms for dispute resolution.

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