MEXICO CITY/ WASHINGTON, D.C.: Mexico and the United States are accelerating efforts to reach an interim bilateral trade agreement before the November 3 U.S. midterm elections, according to six sources in both countries familiar with the negotiations.

"We both want to reach a deal before the midterms," said one Mexico-based source, who spoke on condition of anonymity to discuss private talks.

The negotiations could give Mexico relief from some U.S. tariffs while addressing Washington's demands on issues including automotive content and Chinese investment.

There is no formal deadline, but officials in both countries see advantages in reaching an agreement before the elections, when President Donald Trump's Republican Party risks losing control of Congress.

"Time is of the essence for the Mexican government," the Mexican source said, citing concerns about a weak economy and falling credit ratings on its debt. The source said President Claudia Sheinbaum's administration sees a U.S. trade agreement as important for reassuring markets and investors.

A spokesperson for Mexico's economy ministry said, "There are no specific deadlines at this time," while stressing the government's commitment to dialogue with Washington.

The U.S. Trade Representative and White House did not immediately respond to requests for comment.

Mexico's effort follows the collapse of U.S.-Canada trade negotiations in August, which led to a tariff dispute. On September 8, Washington banned imports of a broad range of Canadian alcohol, motorcycles and dairy products, while Ottawa has pledged to match U.S. tariffs dollar for dollar.

Mexico has continued seeking cooperation with Washington rather than direct confrontation. More than 80 percent of Mexico's exports go to the United States.

The Mexican source described the country's approach as "play nice and continue to cooperate."

U.S. Commerce Secretary Howard Lutnick held a virtual meeting with Sheinbaum on Thursday to discuss trade. The meeting came less than two weeks after Sheinbaum proposed legislation giving the government new powers to review and block foreign acquisitions of Mexican companies.

The proposed investment-screening system would be similar to those in the United States and Canada and is widely seen as responding to U.S. pressure for closer scrutiny of Chinese investment.

The bilateral talks are being framed as an interim arrangement while broader issues involving the U.S.-Mexico-Canada Agreement are negotiated. The pact was thrown into uncertainty in July when the U.S. declined to renew it for another 16 years. It remains in force and is subject to annual review.

A major obstacle is U.S. Section 232 tariffs on steel, aluminum, automobiles, and auto parts. Mexican and Canadian steel face 50 percent U.S. tariffs, while vehicles face a 25 percent duty.

Trump has negotiated lower auto tariffs with other trading partners, including 15 percent for Japan, the European Union and South Korea and 10 percent for Britain.

Several automakers believe Washington could eventually offer Mexico a framework similar to one discussed with Canada: a 15 percent tariff on vehicle imports, with an additional reduction for U.S. content that could bring the effective rate to around seven percent.

Mexico is expected to face U.S. demands for more American content in vehicles, particularly engines, electronics and software, according to a second Mexico-based source.

While Mexico opposes explicit U.S. content requirements, "that doesn't mean it won't be working on something to help increase the U.S. content," the source said, adding that the final form of any compromise remains "the big question."