Mexico appears to be moving closer to an interim trade agreement with the United States. It was reported last week that negotiators are accelerating discussions in hopes of reaching a deal before the U.S. midterm elections in November.
No agreement has been announced, and significant differences remain. Talks reportedly focus primarily on automobiles, steel, aluminum, American content requirements and Chinese investment in Mexico. Nevertheless, Ottawa should be paying very close attention. If Mexico signs first while Canada remains embroiled in a tariff dispute with Washington, the consequences could extend well beyond automobiles and metals. Canada’s agri-food economy could become collateral damage.
