Second Round of NAFTA Talks to Focus on Common Ground

A focus on areas of common ground is expected during the second round of North American Free Trade Agreement (NAFTA) talks September 1-5 in Mexico City.Negotiators will likely focus on moving positions closer on issues where they share similar views including small and medium-sized enterprises and regulatory cooperation, sources told Bloomberg BNA.Tougher issues including investment disputes, market access, currency manipulation and automobile rules of origin, will be raised in round three, the sources said. "At the next two rounds it's how much can they knock out that they agree on," one source remarked. U.S. Trade Representative (USTR) Robert Lighthizer is set to be in Mexico City for the round's conclusion.Another area of common ground includes technical barriers to trade. However, the sides differ on dispute settlement, labor mobility and rules of origin for autos, the source added. During the upcoming round negotiators are expected to try to find more areas of agreement among the proposals offered so far, the source said. The U.S. is pushing to get all the proposals on the table by the third round.