February 19

Obama arrives in Mexico to talk commerce at summit

He’s meeting with the leaders of Mexico and Canada, but on many issues his hands are tied by Congress.

By Jim Kuhnhenn
The Associated Press

TOLUCA, Mexico – President Barack Obama headed into a summit Wednesday with Mexican and Canadian leaders eager to engage on issues of trade and other neighbor-to-neighbor interests, even as Congress is pushing back against some of his top cross-border agenda items.

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President Barack Obama meets with Mexican President Enrique Pena Nieto at the state government palace in Toluca, Mexico, on Wednesday before the seventh trilateral North American Leaders Summit Meeting.

The Associated Press

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President Barack Obama boards Air Force One at Andrews Air Force Base, Md., on Wednesday prior to traveling to Toluca, Mexico, to meet with Canadian Prime Minister Stephen Harper and Mexican President Enrique Pena Nieto.

The Associated Press

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Obama, flanked by his trade negotiator and secretaries of Commerce and Homeland Security, stepped off Air Force One and onto a red carpet in Toluca, near Mexico City, where an honor guard lined the walk to Obama’s limousine. At an ornate state government complex nearby, Obama was to meet with Mexican President Enrique Pena Nieto and Canadian Prime Minister Stephen Harper during the North American Leaders’ Summit.

A full agenda awaited the three North American Free Trade Agreement partners, including commerce, immigration, energy and security.

The talks will highlight how increasingly interconnected the three economies are 20 years since the NAFTA took effect. But they will also illustrate the limits of Obama’s power, his hands tied on immigration by congressional Republicans and on trade by his fellow Democrats.

The summit also takes place against a backdrop of tensions surrounding revelations the National Security Agency spied on Pena Nieto before he was elected and gained access to former Mexican President Felipe Calderon’s email system when he was in office.

To the North, Canadian leaders have voiced frustration at the amount of time the Obama administration has taken to decide whether to approve the Keystone XL pipeline that would carry oil from tar sands in western Canada 1,179 miles to Nebraska, where existing pipelines would then carry the crude to refineries on the Texas Gulf Coast.

The NSA and pipeline issues could surface in one-on-one talks that Obama plans to have with Pena Nieto and Harper on the summit’s sidelines but are not expected to be a factor in the broader, joint discussions among the three leaders.

Obama met Pena Nieto last year when he traveled to Mexico. Wednesday’s visit is scheduled to last less than nine hours.

Keeping with the trade focus of the trip, Obama signed an executive order aboard Air Force One en route to the summit. The order is intended to speed up the process for approving import or export cargo, the White House said. The order directs the government to finish a new electronic system to allow companies to submit their documentation to the federal government without paper forms.

Twenty years after NAFTA’s approval, trade experts say the agreement is due for an upgrade to take into account the current globalized environment and to address issues not addressed in the original pact. But rather than reopen NAFTA, the three countries are instead relying on negotiations underway to complete the Trans-Pacific Partnership, a trade bloc of 12 countries in the Americas, Asia and the Pacific.

The Obama administration is hoping those negotiations are completed this year. The U.S. is also in negotiations over a Trans-Atlantic Trade and Investment Partnership with the European Union. But the president is facing stiff election-year resistance from Democratic leaders over his desire to get “fast track” trade authority, which would require Congress to give yes-or-no votes on the trade agreements and deny lawmakers the opportunity to amend them.

Both Senate Majority Leader Harry Reid, D-Nev., and House Minority Leader Nancy Pelosi, D-Calif., have made clear they don’t want Obama pushing the issue this year. Trade agreements have typically been more popular with Republicans than Democrats; business groups tend to support the removal of trade barriers whereas labor unions fear the loss of jobs. President Bill Clinton faced staunch Democratic opposition when he pressed for NAFTA approval in 1993.

Obama expressed his desire to win the agreements during his State of the Union address last month. But he has since focused on domestic economic policies and hasn’t drawn attention to the trade issue. Still, White House officials say the president will make it clear to Pena Nieto and Harper that the Trans Pacific Partnership negotiations, which are further along than the ones with the European Union, should be completed this year.

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