Trump administration reportedly to announce NAFTA ‘handshake’ deal with Mexico Thursday

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Mexico’s Minister of Economy Ildefonso Guajardo Villarreal looks on during a joint news conference with U.S. Secretary of Commerce Wilbur Ross on March 10, 2017 in Washington, DC.

The U.S. is near an informal NAFTA deal with Mexico, according to one report.

Politico reported on Tuesday the Trump administration is planning to announce it has achieved a breakthrough in its NAFTA negotiations with Mexico, citing three sources close to the talks.

Politico said government officials plan to announce the two sides have made progress and Trump is expected to attend Thursday’s event. One source called the announcement a “handshake” deal, according to the media outlet.

One source familiar with the situation told CNBC there’s still optimism for a deal, but that the Michael Cohen news may throw the timing off of any announcement because it was a “major distraction.”

Trump economic advisor Kevin Hassett told CNBC earlier this week the U.S. was near a deal with Mexico on NAFTA.

“We’re even closer” to reaching a trade deal with Mexico after Mexican negotiators were in Washington for most of last week, he said Monday.

One of the trade advisors for incoming Mexican President Andres Manuel Lopez Obrador told reporters on Tuesday the goal was still for a deal by the end of the week.

The Mexican peso gained vs. the U.S. dollar after the report.

See the full Politico report here.

— With reporting by Kayla Tausche and Mary Catherine Wellons