Trade Negotiators Report ‘Substantial Progress’ : Commerce: Officials plan to work out final details of the three-nation North American pact at a meeting next weekend.

Citing “very substantial progress” toward an agreement that would break down trade barriers among the United States, Canada and Mexico, officials from the three nations said Sunday that they plan to meet again next weekend to iron out final details of the proposed North American free trade agreement.

If an agreement were reached next weekend, negotiators would barely meet the Aug. 3 deadline for submission to the U.S. Congress in time for a vote this year. An accord would also require ratification by the Mexican Congress and Canada’s Parliament.

Next weekend’s meeting would be the first time in the 13 months since the talks began that U.S. Trade Representative Carla Anderson Hills, Mexican Commerce Minister Jaime Serra Puche and Canadian Trade Minister Michael Wilson would have scheduled meetings on consecutive weekends.

However, at a midday press conference Sunday, trade officials declined to say whether they expect to wrap up the agreement next weekend or to set any anticipated completion date. The meeting site was not disclosed, but under the rotation system the United States would be the site of the next meeting.

Officials cited as progress made over the weekend a decision to allow Canadian textile manufacturers relief through tariff rate quotas. “That will put Canadian companies in at least as good a position as they were in going into the agreement,” Wilson said.

Details are still to be completed on other textile issues and issues involving automobiles, agriculture and energy--industries that account for much of U.S.-Mexico trade--as well as financial services, investment and government purchases, the officials said.

“We will complete the areas yet to be addressed in as quick a time as is humanly possible,” Hills said.

The officials, who would not elaborate on progress in those areas, angrily brushed aside questions about secrecy in the negotiations.

Wilson denied rumors that the Canadians--who already have a free trade agreement with the United States and are facing mounting opposition at home to the three-way talks--may pull out.

As the trade officials announced progress on the agreement, opposition groups from the three countries meeting in the same high-rise hotel as the negotiators worried about what kind of agreement will be forged.

“The only non-trade issues being covered are those that interest corporations,” said Adolfo Aguilar Zinser, a political analyst and outspoken critic of the Mexican administration. “The only representatives of society allowed to present their views are corporations.”

Steve Hellinger, who represents a coalition of two dozen U.S. environmental and labor groups, agreed. “This is an agreement among a very narrow strata in each society,” he said. “The benefits will not be spread evenly among people in each country.”

The results of the talks, Aguilar Zinser said, “will be a policy of discrimination against the Europeans and the Japanese.” He also said that his government has failed to take advantage of possible alliances with the Canadians, instead taking the U.S. side on issues.

Other opponents criticized the secrecy of the negotiations and the omission of environmental and labor issues from them. Trade officials denied the charges about the environment.

“The final terms of the agreement will be a major improvement in the area of the environment, which is a growing part of trade,” Wilson said.

Hills and Serra Puche said they have maintained constant contact with private-sector advisers in their countries and with their congresses, which must ratify an agreement.

Even critics say passage by the Mexican Congress is assured. “In the Chamber of Deputies, fast track is really fast track, “ said Aguilar Zinser. “They could probably approve the deal in four minutes flat.”

There are indications of possible opposition in the U.S. and Canadian congresses.

“Congress is sitting firmly on the fence,” said Hellinger. “However, they are starting to give warning that they should be taken seriously in an election year.”

Hills denied that electoral politics or congressional calendars are playing a role in speeding along the negotiations. The U.S. legislative calendar requires that an agreement be reached by Aug. 3 for Congress to vote on free trade this year.

There is also speculation that President Bush would like to have the agreement completed before the Republican Convention next month to reinforce his image as a President strong in foreign policy.

“There is no artificial deadline, not Aug. 3, not Aug. 15,” said Hills. “If we are still negotiating at the beginning of August, then so be it.”

But, referring to the baseball analogy that President Bush made two weeks ago--that the talks are in the ninth inning--she added: “You can’t stay at the top of the ninth forever.”