Source: POLITICO'S MORNING AGRICULTURE, 7/31/18

The on-again-off-again NAFTA talks are making headway again, and seem to be leaving Canada somewhat on the sidelines. Today, top officials from Mexico and the U.S. are again meeting, after emerging from discussions last week with palpable optimism, report Pro Trade's Sabrina Rodriguez and Megan Cassella.

Election pressure: The new mood seems to be motivated at least in part by elections: the end of the Mexican presidential campaign and the coming U.S. midterms, which has sparked a White House push to have modest progress to brag about on the campaign trail.

As Morning Trade reported Monday, the two sides are moving into the final stages of an agreement on complicated automotive rules, marking a significant step forward on one of the most controversial issues up for discussion. That bodes well for farmers wishing for the certainty a NAFTA 2.0 would promise, especially in the wake of a heightened trade war.

Canada left out: Washington hopes that easy talks with Mexico will pressure Ottawa into making concessions. "The U.S. is pretty frustrated with Canada, rightly or wrongly — they see them as foot-dragging," said Dan Ujczo, an international trade lawyer who specializes in Canada-U.S. matters. "It's just like, 'We're not going to waste time with Canada. We've got to strike now with Mexico to get this ratified.'"