(Recasts with deadline extended)
By David Lawder, Adriana Barrera and Anthony Esposito
WASHINGTON/MEXICO CITY, June 5 (Reuters) - U.S. Commerce Secretary Wilbur Ross on Monday extended the deadline for U.S.-Mexico sugar trade negotiations by 24 hours, and two sources said U.S. industry had added new demands after a provisional deal was struck by the governments.
Ross said extra time was needed to complete "final technical consultations" for a deal.
An agreement in Washington would end a year of wrangling over Mexican sugar exports. The latest talks began in March, two months after President Donald Trump took power vowing a tougher line on trade to protect U.S. industry and jobs.
They are seen as a precursor to the more complex discussions on the North American Free Trade Agreement between the United States, Mexico and Canada, which are expected to start in August.
"The two sides have come together in quite meaningful ways, but there remain a few technical details to work out," Ross said in a statement as time was running out on a Monday deadline.
"We are quite optimistic that our two nations are on the precipice of an agreement we can all support, and so have decided that a short extension of the deadline is in everyone's best interest."
Ross did not provide details of the issues yet to be resolved in his statement.
Three Mexican sources with direct knowledge of the talks earlier said an agreement had been struck between the governments. One Mexican and one U.S. industry source said the U.S. sugar industry later came back with additional demands outside of the terms agreed on earlier.
Those demands included changes to a "first refusal right" that would allow Mexico to sell U.S. refiners any additional sugar they needed beyond agreed quotas, the Mexican source said.
The source said the cane refiner ASR Group, a partnership that includes the politically connected Fanjul family, was active in raising the new requirements.
ASR Group declined to comment on its involvement in the talks.
A Washington-based source familiar with the negotiations said that the two sides had "come together" on the four largest issues separating the U.S. and Mexican sugar industries, but some technical details still needed to be worked out. The person declined to elaborate.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ U.S.-Mexico trade talks leave one top sugar company with sour taste