US, Mexico NAFTA negotiators to resume talks next week: minister

Canada warns the U.S. it will strike back if it imposes tariffs on the Canadian auto industry

"It benefits the United States to continue being a major ally of Mexico, as a neighbor and as a regional economy, which combined makes us the most powerful in the world", he said. But he threatened Canada with auto tariffs if the US and Canada can't forge a deal.

In a tweet, the president also said a Nafta deal with Mexico "is coming along nicely".

Teams worked through the night "changing the text" and "got a lot of work done", Guajardo said.

"New President of Mexico has been an absolute gentleman", Trump tweeted.

Both Mexico and Canada want to maintain a trilateral pact, while Trump has threatened to pull out and negotiate separate bilateral agreements.

"We're glad Mexico and the USA continue to work out their bilateral issues".

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Adam Austen, a spokesman for Canadian Foreign Minister Chrystia Freeland, who is leading NAFTA trade talks for Canada, said the minister was in regular contact with her Mexican and US counterparts.

Asked about the discussion on autos on his way out of Lighthizer's office, Guajardo said "we are doing our best to do it as fast as possible", adding that he would remain in Washington on Friday.

U.S. and Mexican officials have said they aim to conclude discussions this month and it is the third straight week ministers have traveled to Washington for meetings.

Guajardo said that once bilateral U.S. He said this could take place in "the next few days or weeks".

The United States has sought tougher rules on what percentage of a vehicle's components need to be built in the NAFTA region to avoid tariffs, as well as demanding that a certain number of cars and trucks be made in factories paying at least $16 an hour.

The U.S. -Mexico talks for a reworked North American Free Trade Agreement resumed three weeks ago, without Canada, after negotiations involving all three members of the $1.2 trillion trade bloc stalled in May.

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