The fourth round of trade talks between Mexico and the United States will take place next week, with officials from both sides expressing eagerness to hammer out a deal before the U.S. midterm elections in November, according to sources interviewed by Reuters.

A framework for a deal would benefit both parties. 

U.S. President Donald Trump is looking for a win on the economic front (a bilateral deal may bring down consumer prices in the U.S.) as he faces the possibility of losing control of Congress when ballots are cast on Nov. 3. Meanwhile, the Mexican government is struggling with investor unease and a cooling economy. 

Mexico’s push to reach a deal comes after U.S.-Canada trade talks — the other half of the U.S.-Mexico-Canada Agreement (USMCA) review process — collapsed last month.

The U.S.-Mexico talks are seen as an effort to reach an interim bilateral deal while issues with the USMCA on the whole are ironed out.

President Sheinbaum chatted with U.S. Commerce Secretary Howard Lutnick last Wednesday to assess the progress of the negotiations, after which Economy Minister Marcelo Ebrard flew to Washington, D.C., to finalize details ahead of the fourth round. Next week’s bilateral meetings will be the first formal return to the negotiating table since the third round of talks was held in Mexico City from July 21-23.

A grounded flight turns Sheinbaum-Lutnick USMCA meeting virtual, but still ‘very useful’

Upon his return to Mexico City on Friday, Ebrard met with José Medina Mora — president of Mexico’s Business Coordinating Council (CCE), the principal organization representing Mexico’s private sector before federal and local governments. It groups 14 major business umbrella organizations that represent more than 2,000 trade associations comprising roughly 80% of Mexico’s GDP.

Medina Mora told the newspaper El Universal that the elimination of Section 232 tariffs, which place duties on aluminum, steel and automobiles, is expected to be a primary focus next week.

He expressed confidence that the two sides will avoid the problems that arose during the U.S.-Canada dialogue, saying they would not affect negotiations with Mexico.

“The bilateral relationship between the United States and Canada is different from our relationship [with the U.S.],” he said, adding that Sheinbaum “has clearly defined the limits of what is unacceptable, while maintaining a cordial … relationship” with Trump.

“[Sheinbaum’s strategy] has yielded results and our negotiations are moving forward,” he said. 

On Saturday, when asked whether the United States would leave the USMCA, Trump told the Irish press that “we’re going to have a great relationship with Mexico” and that a deal with Canada would come soon.

With reports from El Universal, Bloomberg and Reuters