Source: POLITICO'S MORNING AGRICULTURE, 7/26/18

Mexico's negotiating team is back in Washington today to continue the NAFTA renegotiation after talks among the U.S., Mexico and Canada chilled almost two months ago. Mexican Economy Minister Ildefonso Guajardo will meet with U.S. Trade

Representative Robert Lighthizer for the first time since the Mexican presidential election on July 1 to formally pick the talks back up, renewing hopes that negotiators can land a deal in the coming months.

"There's hope that the U.S. should have a new position. It wouldn't make sense to schedule this meeting if there's no change in position," a source close to the negotiations told MA. A big part of today's meeting will be to "see if the U.S. has found a way to work through the challenges with Mexico."

Cautious expectations: "I don't see how Lighthizer will back down. He's been pretty consistent about the poison pill issues," said Vanessa Sciarra, a former U.S. trade negotiator who now works as a vice president at the National Foreign Trade Council.

Where we're at: High-level talks stalled in May after negotiators were unable to break ground on a number of thorny issues, such as automotive rules of origin, a seasonal produce proposal, dairy and the so-called sunset clause, which would allow for the deal to be terminated after five years if the three countries don't agree to renew it.

Reality of a U.S.-Mexico bilateral: Mexico and Canada shut down on Wednesday the notion that the NAFTA renegotiation could be split into two bilateral deals with the U.S., despite Trump's repeated comments that the U.S. may reach a deal with Mexico first.

"The essence of this deal is trilateral, and it will remain trilateral," Guajardo said after meeting with Canadian Foreign Minister Chrystia Freeland in Mexico City. Freeland added that "Canada very much believes in NAFTA as a trilateral agreement and that is simply a statement of reality."