Mexico and US Race to Secure Trade Deal Before Midterms

Mexico and the United States are accelerating negotiations to reach a bilateral trade agreement before the November 3 US midterm elections, according to sources familiar with the talks.

The proposed interim deal could give Mexico relief from some US tariffs in exchange for concessions on issues including automobile content and Chinese investment.

Mexico sees an agreement as important for supporting its economy and reassuring investors, while US President Donald Trump could use a deal as a political achievement ahead of the elections.

The talks gained urgency after negotiations between Washington and Canada broke down, leaving Mexico seeking to avoid a similar confrontation. More than 80% of Mexico’s exports go to the United States.

US Commerce Secretary Howard Lutnick held a virtual meeting with Mexican President Claudia Sheinbaum on Thursday as discussions intensified.

Major obstacles remain, particularly US tariffs on steel, aluminum, vehicles and auto parts. Mexican officials are also facing pressure to increase US content in vehicles, especially engines, electronics and software.