The United States and Canada have forged a last-gasp deal to salvage NAFTA as a trilateral pact with Mexico, rescuing a three-country, $1.2 trillion open-trade zone that had been about to collapse after nearly a quarter century.
In a joint statement, the two nations said the new United States-Mexico-Canada Agreement (USMCA) would “result in freer markets, fairer trade and robust economic growth in our region”.
Negotiators worked frantically ahead of a midnight US-imposed deadline to settle differences, with both sides making concessions to seal the deal.
“It’s a good day for Canada,” Prime Minister Justin Trudeau told reporters after a late-night cabinet meeting to discuss the agreement, which triggered a jump in global financial markets.
President Donald Trump, who blamed NAFTA for the exodus of manufacturing jobs to low-wage Mexico, had threatened to walk away from NAFTA unless major changes were made.
“It’s a great win for the president and a validation for his strategy in the area of international trade,” a senior administration official told reporters.
Trump has approved the deal with Canada, a source familiar with the decision said.
US officials intend to sign the…
