Both Mexico and Canada agreed at a panel in Davos, Switzerland, that the North American Free Trade Agreement in long overdue for modernization. And both countries remain positive that a new deal will surface that satisfies all countries, Reuters reported on Thursday.
A U.S. government representative was not present at the panel, but Canada’s Foreign Minister Chrystia Freeland, and Mexican Economy Minister Ildefonso Guajardo both expressed positive outlooks. Both countries have brought creative solutions to the latest round of NAFTA discussions, which kicked off this past week in Montreal.
The biggest topic will be the automotive sector, which Guajardo named as a crucial area in need of modernizing.
“The car that we use as the base for rules of origin is the model from 1991. Look at the car today—it’s 80 percent different,” Guajardo said.
He added that negotiators needed to listen to President Donald Trump‘s requests and attempt to implement some of the administration’s requests without harming various sectors of business.
A previous report put two unnamed Canadian officials on the record saying they believe President Trump will ultimately withdraw from the trade agreement. Such a move would impact numerous automakers, including General Motors, which produces vehicles in all three North American countries.