The stalled North American Free Trade Agreement renegotiations could result in a trade agreement between China and Mexico, according to China’s ambassador to Mexico, Qiu Xiaoqi.
The diplomat said that a trade exchange with Mexico would be favorable to both countries.
China and Mexico have been making moves towards strengthening ties since the United States exited the Trans-Pacific Partnership.
U.S. President Donald Trump's insistence that Mexico funds his campaign-promised border wall further compounds the U.S.-Mexico relationship and permeates the estrangement between the neighbors.
Their weakening ties and languishing trade deal could lead to Mexico forging a relationship with the Chinese. This could result in trade losses for the United States.
Last week, the Office of the U.S. Trade Representative held a series of public hearings to address the stalling NAFTA talks, which are expected to commence in mid-August.
If not satisfactorily renegotiated, the agreement could afford other countries seamless passage to expand their markets in Canada as well as Mexico.
Recently, several agriculture representatives emphasized the importance of the United States finalizing, in a timely manner, the agreements with the two countries in order to preserve their industry and prevent any disruptions.
New Jersey Representative Bill Pascrell singled out the U.S. Trade Representative for requesting the public's input regarding the terms of the renegotiation. He said he found it unusual that the office of the trade representative was second-guessing the renegotiations at this advanced stage.
Pascrell also took the opportunity to encourage the USTR to utilize this occasion to establish itself as a frontrunner in global trade.
“Now that the administration has begun the process of renegotiating NAFTA, Congress and the American people need clarity regarding the administration’s intentions, its objectives, and the scope and structure of the effort,” he added.
The onus will be on the United States to reassure trade partners that they are still interested in occupying a seat at the table so that they don't seek alternative deals.