US Trade Representative Jamieson Greer stated that formal trade talks with Mexico were progressing, while discussions with Canada had not yet yielded the concessions sought by President Trump.
Jamieson Greer stated that formal trade talks with Mexico were progressing, while discussions with Canada had not yet yielded the concessions sought by President Donald Trump as he pushes to reduce US trade deficits with both countries.
“So it goes well with the Mexicans. They’re quite pragmatic,” Greer said during an appearance at the Aspen Institute’s Security Forum in Colorado. “But our trade deficit with Mexico is a real challenge. It’s a real problem.”
U.S. and Mexican officials are scheduled to hold a third round of formal bilateral negotiations on the USMCA next week in Mexico City.
In contrast, Greer stated that the United States has not begun formal negotiations with Canada on the future of the trade pact, although he speaks weekly with his Canadian counterparts.
Earlier this month, Greer decided not to extend the U.S.-Mexico-Canada Agreement on July 1, citing concerns such as the U.S. trade deficit with Mexico, which grew by $28 billion, or 17%, to $197 billion by 2025, according to U.S. Census Bureau data.
The decision set a ten-year deadline for finalizing the North American trade agreement unless the three countries can agree on improvements.
He stated that while the Trump administration would prefer U.S. companies to import goods from Mexico rather than from China or Southeast Asia, the “structural” trade deficit with Mexico must be “controlled.”
“I have a mandate from the president to find a way, in any agreement we make with Mexico, to… tariffs or quotas or whatever it is to try to control that,” Greer said.
“You know, we want to do it in a way that doesn’t unnecessarily disrupt supply chains, but we do want to incentivize supply chains to relocate” to the U.S.
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During bilateral USMCA talks with Mexico in May, the Trump administration proposed requiring that 50% of the value of vehicles manufactured in North America originate in the United States—a significant departure from current rules and a difficult adjustment for manufacturers with highly integrated regional supply chains.
Greer did not discuss the administration’s specific proposal regarding vehicle content requirements on Wednesday, but stated that automotive rules of origin should be tightened so that cars and trucks contain more parts from the U.S. and Mexico and fewer from Asia.
He added that he wanted stricter rules of origin for strategic sectors such as industrial goods, electronics, and pharmaceuticals, noting that U.S. and Mexican officials were identifying products that could be shifted back to North America.
Regarding Canada, Greer said he had made suggestions to Canadian trade officials for immediate changes to put the U.S.-Canada trade relationship in a “better position.”
Although they meet weekly, Greer said: “That’s not a concession. That’s not movement. That’s just describing what we do now, which is talk.”
The U.S. trade deficit with Canada—driven largely by oil imports from its northern neighbor—fell by $12.9 billion, or 21%, last year, dropping to $48.3 billion.
He cited Canada’s moves to reverse a proposed digital services tax and an online streaming law—measures that would have harmed U.S. companies—as positive steps, though he said he was unwilling to give Canadian negotiators credit for them.
He declined to estimate how long the talks might last but said a breakthrough could require a direct agreement between Trump and Canadian Prime Minister Mark Carney. “I mean, the reality is that if the president and Prime Minister Carney—you know—have an agreement, surely we can put something together that makes sense to overcome the hurdle.”
With information from Reuters https://forbes.com.mx/eu-dice-que-avanza-en-negociaciones-comerciales-con-mexico-pero-no-logra-concesiones-de-canada/
