North American Free Trade Agreement

TSUKUBA, JAPAN – President Trump’s decision to indefinitely suspend plans to hit all Mexican goods with tariffs was welcomed here at this weekend’s G20 trade ministerial, where Japanese and Canadian officials were closely monitoring the discussions between U.S. and Mexican negotiators.

The U.S. and Mexico have a “good chance” of striking a deal on immigration that will involve increased Mexican purchases of U.S. agricultural products, President Trump said on Friday.

The U.S. and Mexico have yet to resolve a dispute over immigration that President Trump has tied to blanket tariffs on Mexican goods, Foreign Affairs Secretary Marcelo Ebrard said on Wednesday.

In a draft statement of administration action on the U.S.-Mexico-Canada Agreement sent to Congress last week, the Trump administration suggested the frequent use of Section 301 as a means of enforcing the deal while leaving several issues, including those flagged by Democrats as major concerns, as open “for discussion.”

Senate Finance Chairman Chuck Grassley (R-IA) has come out against President Trump’s decision to impose tariffs on Mexican goods, citing concern over the ratification of the U.S.-Mexico-Canada Agreement, while the U.S. Chamber of Commerce said it was considering a legal challenge to the move.

“The draft SAA provides an outline for further discussions with Congress on these issues,” he told the House speaker. “We have included placeholders flagging areas we expect will be the focus of those conversations.”

U.S. Trade Representative Robert Lighthizer plans to send a draft statement of administrative action required on the U.S.-Mexico-Canada Agreement to Congress on Thursday, sources told Inside U.S. Trade, starting the 30-day clock allowing for the submission of final implementing legislation to Capitol Hill.

The Mexican president predicted the deal would be ratified soon by all three parties.