Mexicans Protest Second-Round NAFTA Negotiations

The second round of talks to update the 23-year-old North American Free Trade Agreement, NAFTA, have begun in Mexico City, where hundreds of demonstrators are protesting the government of President Enrique Peña Nieto.

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In a statement, Mexico’s economy ministry said the talks will take place from September 1 to 5 after the first meeting held in Washington from August 16 to 20, in which the guidelines and topics were discussed. 

Negotiators from the United States, Canada and Mexico are joining 25 negotiation sessions covering a range of topics, such as product rules of origin, market access, e-commerce and anti-corruption issues, according to the statement. 

In response to the talks, social organizations and unions are holding a protest against neoliberalism and the “secret renegotiation” of the agreement in the Legislative Palace. Protesters claim NAFTA and Nieto's support for the agreement have damaged the country and weakened workers' rights.

The latest round of talks come amid renewed threats by U.S. Donald Trump to abandon the trade deal. Trump argues the accord has cost the United States jobs and industrial capacity since it was first implemented in 1994.

"NAFTA is one of the worst trade deals ever signed at anytime, anywhere in the world," Trump said at the White House on Monday.

Trump also said he might trigger a 180-day countdown to withdraw from NAFTA while the talks take place to help meet his goals, which include sharply reducing a US$64 billion annual U.S. trade deficit with Mexico.

Mexican and Canadian officials have dismissed Trump’s typical rhetoric as a negotiating tactic: "He's negotiating in his own particular style," Mexican Foreign Minister Luis Videgaray told Mexican television.

However, Mexico said it would walk away from the negotiations if Trump pulls the trigger on withdrawing from the deal, but would remain in the deal together with Canada.

“NAFTA will continue to regulate the relationship between Mexico and Canada,” Mexican Economy Minister Ildefonso Guajardo said on Thursday. “The one that could take that decision, depending on how we get on with the negotiation, is our neighbour the United States.”

On Thursday, Trump and Canadian Prime Minister Justin Trudeau spoke by telephone and nd stressed they wanted to reach an agreement on NAFTA by the end of the year, the White House said.

Mexico also wants to reach a deal before the process interfering with the country's presidential election next year.

Nevertheless, Juan Pablo Castanon, president of Mexico's Business Coordination Council representing the private sector in the talks, said Mexico is working on a “Plan B”  to reduce its dependence on the United States.

Talking on Mexican television, he said the plan was focused on striking new trade arrangements in Asia and Latin America and finding ways to recreate investor guarantees that are included in NAFTA.

"We estimate we would have to be ready in three months. Of course, some investment arriving would be slowed down, but in three months, Mexico's reorientation and recovery measures would have to be ready," Castanon said.