Mexico's New NAFTA Negotiator Sees Momentum Rising in Talks

Negotiations under the NAFTA 2.0 effort to update the trade pact will accelerate now that Andrés Manuel López Obrador has won the Mexican presidential election, his incoming chief negotiator in the talks, Jesus Seade told Reuters."We are basically supporting what Mexico has been putting forward," he said. "And we will be more than happy to explore, proactively, ways to energize the negotiation." Seade said he will work with outgoing Economy Minister Ildefonso Guajardo as the talks conclude and Mexican negotiators will meet in coming weeks to set their plans.While backing the positions Mexico has taken, Seade said he has ideas on how to improve the deal for the U.S. without hurting Mexico. He did not provide details on what those ideas may involve.A key in the talks has been the auto sector and its rules of origin, with Seade labeling the 70 percent content threshold Mexico offered as being "high, but I will not fight it... but going beyond that, I think it begins to hamper the efficiency of our car industry collectively."As for raising wages for autoworkers, Seade backs the concept but said NAFTA is not the right place. "It begins to create all kinds of precedents for other sectors," he said. "Why not the tourism industry? Why not kitchen equipment?"Regarding potential U.S. auto tariffs, Seade said he leaned toward retaliation, noting U.S. corn could be a good product to target.Seade was Mexico's trade ambassador during the negotiations to set up the WTO, and pledged to "make every effort to stop the Americans from leaving."