Federal Spotlight: U.S. and Mexico Coming Closer to Agreement on NAFTA

Several news outlets have reported that U.S. and Mexico trade talks are moving in the right direction and that a preliminary agreement on NAFTA could be reached in the next few weeks. Canada is currently not involved in these specific talks. There have been key sticking points in negotiations, which include auto rules of origin, environmental regulations and a proposal by the U.S. that any deal reached be terminated after five years unless all three countries agree to renew. Mexico and Canada have been adamantly opposed to this idea. The business community is hoping that a resolution comes sooner rather than later. Mexico and Canada are Iowa’s top two trading partners and play a large role in our state’s economy.