Mexico expects the renegotiation of the North American trade pact to produce benefits for itself, the United States and Canada, Mexican central bank Governor Agustin Carstens said Saturday.

"NAFTA has been tremendously important for the Mexican economy and ... there is plenty of room to modernize NAFTA, to make it fair and productive for the three countries," he said at the International Monetary Fund-World Bank annual meetings in Washington.

"So we are betting and expecting a win-win situation," he said. "I'm sure we will be able to navigate to a safe port through the next session of negotiation."

US President Donald Trump campaigned last year on the idea that the 23 year old NAFTA pact had hurt US workers while delivering more benefits to the two US neighbors.

Earlier this year, he forced the two to enter renegotiations, and has said that if the United States does not reap more benefits he will abrogate the agreement.

A fifth round of talks began this week in Arlington, Virginia, a Washington suburb, amid worries of a deadlock.

Carstens stressed that Mexico wants to reach a deal.

"Mexico definitely is negotiating in good faith, with the expectation of reaching an agreement," he said.

Speaking alongside Carstens, IMF Managing Director Christine Lagarde stressed that free trade is overall a good thing for the global economy.

IMF research shows, she said, that trade "is actually a very powerful engine for growth, for innovation, for competition and for productivity."

However, she added, "It is also the case that when you have longstanding agreements that have not been revised, it is perfectly legitimate because the world has changed, that they are revisited, improved."

Source: AFP