Mexico says "very close" on NAFTA issues with the U.S.

‘Canada must wait’ on trade deal but agreement with Mexico coming along nicely, Trump tweets

The NAFTA is a deal signed by the US, Canada and Mexico, creating a trilateral trade bloc in North America.

But the USA negotiators do not want to apply the same guarantees to new Mexican auto plants, the officials said, as the potential threat of 25 percent tariffs would discourage new automotive investment in Mexico to serve the US market.

After a second day of meetings with US Trade Representative Robert Lighthizer in Washington, Guajardo said talks were "advancing" but that it was not clear how long it would take to settle US-Mexico issues before Canada would come back to talks.

President Trump on Friday threatened tariffs on Canadian-made cars if US officials can't strike a deal with the country on overhauling the North American Free Trade Agreement.

However, he acknowledged: "We still have a lot of work to do". Their Tariffs and Trade Barriers are far too high.

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Speaking as he left a meeting with the USA trade team in Washington, Ildefonso Guajardo said the return of Canada, the third country in the trillion dollar trade zone, would depend on solving bilateral elements in "the next few days or weeks".

Mexico and Washington have been discussing rules for the automotive sector, which has been a major point of contention between the two countries. "We have to make sure that the US-Mexico bilaterals are done".

"We are organizing the items according to the degree of complexity and sunset clause is the very last", he said.

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

Mexican President-elect Andres Manuel Lopez Obrador has earlier talked of a "new relationship" with the United States.

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