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Throughout most of the talks, Pena Nieto’s administration had reasoned that, together, Canada and Mexico had more leverage in negotiations that were stacked in Trump’s favor. Both economies depend heavily on U.S. customers, with Mexico sending about 80 percent of exports to the United States and Canada sending about 75 percent. Together, Mexico and Canada account for slightly more than a third of U.S. exports. But on Aug. 27, less than two months after Trump’s call to Lopez Obrador, negotiators for the United States and Mexico struck a deal.

“Mexico had to look out for Mexico,” said Moises Kalach, head of the international negotiating arm of the CCE business lobby, which represented Mexico’s private sector at the NAFTA talks, Mexican officials point out that Canada had previously signaled that it might take the same path, Early last year, the Canadian ambassador to Washington, David MacNaughton, said publicly that Canada would act trilaterally or bilaterally depending on its interests, Canada’s office of Foreign Minister Chrystia Freeland declined to comment on the university of washington huskies cufflinks U.S.-Mexico deal or its impact on Canada’s ongoing talks with the United States, The White House did not comment in response to Reuters questions..

The U.S.-Mexico pact has prompted many of Canada’s business and political leaders to ramp up pressure on Prime Minister Justin Trudeau to cut his own deal with the United States. Mexico weakened Canada’s negotiating leverage when it conceded on some issues important to Ottawa, including a mechanism to resolve disputes between NAFTA members known as Chapter 19, which Canadian officials say offers protection from unfair trade practices. Canada used the process to defend its lumber exports in the face of U.S. charges that the timber is unfairly subsidized.

Canada is also resisting U.S, demands to open the protected dairy industry to U.S, competitors, Canadian officials believe Mexico gave up too much in the deal, said an influential private sector union leader with close ties to Canada’s negotiators, “There’s a general feeling that the Mexicans capitulated in some key areas,” Unifor president Jerry Dias said in a phone interview, Pena Nieto needed an agreement by the end of university of washington huskies cufflinks August, Any later would have meant that he won’t be able to sign it before leaving office on Nov, 30 because it could take 90 days for the U.S, Congress to review and approve the deal..

Trump, a Republican, still faces opposition from some members of his party in Congress who favor a trilateral agreement, along with the risk that Republicans could suffer defeats in the upcoming mid-term elections on November 6 and lose their majority in the U.S. House or Senate. Trump’s deal with Mexico could help his party in the elections because many states that helped elect the president in 2016, particularly in agricultural regions, would have been hurt by a breakdown in trade with Mexico, said Kalach of the CCE business lobby.

Personal connections also smoothed the path to a deal, Among those tasked with leading the Mexican negotiation was Luis Videgaray, foreign minister for the outgoing administration, who forged university of washington huskies cufflinks a relationship with Trump’s son-in-law and adviser Jared Kushner, The two men had met through Wall Street connections before Trump’s inauguration in 2017, The arrival of Lopez Obrador’s chief negotiator, Jesus Seade, also accelerated the process, officials familiar with the talks said, Videgaray told Mexican television it was Seade who broke the deadlock over a U.S, demand for a so-called “sunset clause” that could kill NAFTA if it was not reworked in five years..

Videgaray’s connection to Kushner, a regular participant in the talks, proved vital in containing tensions and sustaining negotiations, said Gustavo de Hoyos, head of Mexican employers’ confederation COPARMEX. “Videgaray has had the most access to the White House of any Mexican foreign minister in years,” he said. With a mutually agreeable end-of-August deadline in place, both sides came away from negotiations with some victories. Mexico’s negotiators convinced Washington to drop a demand for curbs on seasonal food imports and to retain an exemption granted under NAFTA from industrial tariffs imposed by the United States under World Trade Organization (WTO) rules.

The United States will likely retain university of washington huskies cufflinks more auto-industry jobs after Mexico agreed to impose minimum salary requirements on the sector – at least $16 an hour for between 40 and 45 percent of workers, five times what most earn now, Pena Nieto had resisted that request as a protectionist intrusion into Mexican labor issues, Lopez Obrador was more supportive, said Dias of the Canadian Union Unifor, Lopez Obrador wants to improve wages and persuade Trump to help foster economic development in Mexico as a way to curb Mexican immigration to the United States..

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