Business Without Borders:

A U.S. proposal for Mexico and Canada to vastly raise the value of online purchases that can be imported duty-free from stores like (AMZN.O) and eBay (EBAY.O) is emerging as a flashpoint in an upcoming renegotiation of the NAFTA trade deal.Vulnerable industries like footwear, textiles and bricks and mortar retail in Mexico and Canada are pushing back hard against the proposal by the U.S. trade representative to raise Mexican and Canadian duty-free import limits for e-commerce. For the Mexicans, the main worry is that such a move could open a back door for cheap imports from Asia and beyond. For Canadian retailers, the fear is that e-commerce companies will undercut their prices.

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US-MX Relations:

Mexico’s economy minister sees a 60 percent probability that talks starting next week to renegotiate the North American Free Trade Agreement will be wrapped up by a soft deadline for the end of the year, he said in an interview on Tuesday. Ildefonso Guajardo, who will take part in the first round of NAFTA talks in Washington starting on Aug. 16, said it was important to meet the ambitious timeline to sign a new deal before Mexico’s next president takes office at the end of 2018.

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