The quest to renew NAFTA is slowing to a crawl as Canada andMexico tiptoe around America's most controversial proposals,throwing into doubt the three nations' ability to reach a quickdeal.

The U.S. is frustrated with the reluctance of Canada and Mexicoto present counter-proposals on key issues such as regional contentrules for cars, which could make or break a deal. Mexico and Canadacontinue to portray key U.S. demands as unworkable, and are holdingout hope the Trump administration will bow to pressure from U.S.lawmakers and corporations to keep core elements of the dealalive.

There has been an air of technocratic calm to the talks thisweek in Mexico City as bureaucrats plug away at less explosiveissues. Trade chiefs from the three countries aren't attending thisround, which has dialed down rhetoric on the ground, but also lefta political void for overcoming some of the sticking points. Thesprint for a U.S. tax overhaul this year has overtaken the agendain Washington, diverting some attention from NAFTA.