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Canada rejoins NAFTA talks as US autos tariff details emerge

top trade negotiator praised trade concessions on autos and labor rights on Tuesday as she rejoined NAFTA talks, while U.S. lawmakers warned that a bilateral -Mexico trade deal would struggle to win approval in Congress.

Automotive executives and other sources also told Reuters on Tuesday that the bilateral U.S.-Mexico deal announced on Monday allows President to impose 25 percent tariffs on imports of Mexican-made passenger vehicles and auto parts above certain volumes.

If Trump proceeds with the tariffs now under consideration based on national security concerns, Mexican duty-free exports of cars and sport-utility vehicles to the United States would be capped at 2.4 million vehicles annually. Volumes above that level would be subject to tariffs, auto industry officials and other sources said.

Canadian Foreign Minister Chrystia Freeland said that Mexico‘s “difficult” concessions to the United States on Monday would pave the way for productive talks this week as all three countries race toward a Friday deadline for a deal to modernize the 24-year-old North American Free Trade Agreement.

“These concessions are really going to be important for workers in Canada and the United States,” she told reporters after meeting with U.S. Trade Representative Robert Lighthizer.

Freeland, who later met with Mexican officials on Tuesday evening, said she is due to dig into detailed discussions with Lighthizer on Wednesday.

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