Mexico not looking to cut side deal with U.S. and leave Canada out, foreign secretary says

Mexico's foreign secretary says his country isn't looking to cut a deal with the U.S. if it means abandoning the trilateral trade pact with Canada.

Mexico not looking to cut side deal with U.S. and leave Canada out, foreign secretary says U.S. trade rep said Wednesday that talks with Mexico are progressing further than talks with Canada Mexico's foreign secretary says his country isn't looking to cut a deal with the U.S. if it means abandoning the trilateral trade pact with Canada. When asked Friday if Mexico would go it alone on a trade deal with the U.S., Roberto Velasco Álvarez shook his head and said all three countries that make up the Canada-U.S.-Mexico Agreement (CUSMA) have bilateral issues to work on.

"[CUSMA] is a trilateral agreement, and of course the three countries agree that that architecture should continue," he said during a joint news conference with Canada's Foreign Affairs Minister Anita Anand in Ottawa on Friday. Mexico has held a number of official negotiations with the U.S. and appears to be further ahead in trade talks than Canada. U.S. Trade Representative Jamieson Greer said Wednesday that formal trade talks with Mexico were progressing, while discussions with Canada had yet to produce concessions sought by President Donald Trump as he pushes to reduce U.S. trade deficits with the two countries.

Canadian officials have downplayed concerns that Mexico is further ahead, arguing that each country has separate concerns to address with the U.S. Velasco Álvarez echoed that sentiment on Friday and said Canadians shouldn't read too much into the bilateral discussions. "Each of us have bilateral issues," he said. "Each of us is trying to resolve their bilateral issues in their own way."

Anand said it is "difficult to compare" how bilateral talks with the U.S. are progressing because both Canada and Mexico are discussing different issues with the Americans. The three countries had until July 1 to publicly declare that they want to extend the deal another 16 years. Both Canada and Mexico called for the extension, while the U.S. said it wants certain provisions reviewed in the meantime.

Mexican President Claudia Sheinbaum said just ahead of the July 1 checkpoint that Mexico has formed a common front with Canada during trade talks. "We have strengthened our relationship with Canada, there are Canadian business investments in Mexico," Sheinbaum said in June. Anand announced $12 million in funding on Friday that she said would go toward shared priorities with Mexico, including combatting transnational crime.

In his comments on Wednesday, Greer argued that Canada rolling back two major trade irritants — the digital services tax and a separate tax hike on online streaming services — hasn't moved the needle in trade talks. "I'm glad they did that, but they don't really get credit for doing something bad and then undoing it," Greer said. When asked for a response to Greer's comments, Canada-U.S. Trade Minister Dominic LeBlanc's spokesperson told CBC News in a statement that "Canada is ready to do the work on an expedited basis to get to a successful renewal of the CUSMA and provide certainty and predictability to our workers and businesses."

U.S. and Mexican officials are due to hold a third round of formal bilateral negotiations next week in Mexico City. Greer suggested a breakthrough with Canada would likely happen at the highest level — between Trump and Prime Minister Mark Carney. "The reality is, if the president and Prime Minister Carney have an understanding, then I'm sure we can put together something that makes sense to get us over the hump," Greer said.

With files from Reuters