Three-party NAFTA deal requires trilateral talks: Mexico

Mexico on Tuesday said any renegotiation of the three-party North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada should involve all sides.

"The negotiations will have to be of a trilateral nature. The relationship of the FTA (free-trade agreement) is between Mexico, Canada and the United States," said Foreign Affairs Minister Luis Videgaray.

Mexican and U.S. negotiators are expected to meet in June to renegotiate the two-decade deal, following U.S. President Donald Trump's insistence that the agreement has benefited Mexico at the expense of U.S. manufacturing jobs.

In a presentation to the Foreign Relations Committee of the Chamber of Deputies, Videgaray added that "the negotiation must be integrated, with all topics (included): trade, immigration, security, culture and education."

While Mexico initially balked at the suggestion of revising an agreement that has been in effect since 1994, it recently warmed up to the idea.

"Mexico is also very important to the United States, and at the end of the day it is in the mutual interests of both countries to have a constructive relationship of respect and partnership," said Videgaray.

With Trump and his aides once again insisting Mexico pay for a border wall that his administration wants to build to allegedly keep out illicit drugs and undocumented migrants, Mexico's top diplomat reiterated that his country will not finance the project.

Trump has floated the possibility of applying a tax on Mexican goods going into the United States, or on remittances going out, to pay for the wall, which the Department of Homeland Security estimates will cost about 20 billion U.S. dollars to build. While Senate Democrats say it could cost up to 70 billion dollars for construction and 150 million dollars a year for upkeep.

According to Videgaray, Mexico has made it clear that the remittances are not open to negotiation in relation to trade matters or the wall.

Mexico will take legal measures against any U.S. decision that violates World Trade Organization rules, said the minister.

At the same time, Videgaray assured lawmakers that Mexico is working to diversify trade ties that for years hinged on the United States.

"We are in a process to get closer to Europe, as we are with Asia, through our main trade partner China, with which we have a comprehensive strategic partnership, and opening up different opportunities with several countries that formed part of the TPP," said Videgaray, referring to the Trans-Pacific Partnership. Endi