By Dave Graham and Frank Jack Daniel
MEXICO CITY, March 7 (Reuters) - White House advisor JaredKushner left Mexico City on Wednesday with prospects no nearerfor a summit between his father-in-law President Donald Trumpand Mexico's President Enrique Pena Nieto, as both sides saidprogress on joint policy concerns was needed first.
Kushner met with Pena Nieto and other top Mexican officialsin a bid to soothe recent tensions after it emerged that a phonecall between the two presidents had gone badly due to Trump'sinsistence that Mexico pay for a border wall he wants to buildto stop illegal immigrants.
During the past week, Trump delivered several barbs against Mexico, whose leaders were dismayed by the U.S. president'sdecision to announce protectionist tariffs during complex talksto rework the NAFTA trade pact.
After Kushner left, Mexico's foreign ministry said officialsfrom both nations agreed that any possible meeting between Trumpand Pena Nieto would depend on progress made on areas of mutualconcern such as revamping NAFTA, security and migration.
The ministry issued a short statement saying that Kushner,who came with other U.S. officials, had discussed issues such asthe fight against drug trafficking, border security, migration,jobs and Central America with his Mexican counterparts.
It made no mention of the border wall or how progress mightbe measured.
Pena Nieto was accompanied by Economy Minister IldefonsoGuajardo and Foreign Minister Luis Videgaray, who earlier held aseparate meeting with Kushner at his ministry.
Spirits briefly improved during Kushner's trip when theWhite House said it might exempt Mexico and Canada from Trump'splanned tariffs on steel and aluminum, an idea he has floated asa trade-off in return for progress on NAFTA. diplomats and opposition leaders had been skepticalabout how much Kushner could achieve on his visit, despite theclose relationship he has forged with Videgaray. They alsodoubted his presence would change Trump's attitude to Mexico.
"I don't doubt that Kushner will say positive things,because he's not Trump," said Agustin Basave, a senioropposition lawmaker in the Party of the Democratic Revolution.
"But it doesn't mean a thing if the next day - or even thesame night - Trump sends a tweet saying the opposite."
Many officials in Mexico argue Pena Nieto has little to gainfrom meeting Trump and are doubtful it will happen soon giventhe American's unpopularity south of the border and penchant forblaming Mexicans for the United States' problems.
A senior U.S. official said one goal of Kushner's trip wasto reduce tensions after the testy phone call between the twoleaders, that U.S. officials said led to the postponement of aplanned summit.
The call also dampened the mood at the outset of a seventhround of talks to renegotiate the North American Free TradeAgreement (NAFTA). The talks ended on Monday in Mexico City.
Talks between Kushner and Economy Minister Guajardo isMexico's top NAFTA negotiator, broached the subject of workingtowards a "speedy" renegotiation of the deal, Mexico'sgovernment said.