Canada's role: While the deal is just between the USA and Mexico, the hope is that Canada will "negotiate fairly" to join the agreement at a later date, enter into a separate deal, or face automobile tariffs.
"I'll be terminating the existing deal and going into this deal", Trump said.
When asked by reporters if a deal had been reached, Mexican Economy Minister Ildefonso Guajardo said an announcement was "probably on the agenda", but that he still had to conclude a "very important" issue.
The North American Free Trade Agreement was signed by Canada, Mexico, and the United States in 1993, during the presidency of Bill Clinton. The new deal with Mexico would be signed in November. The pact between Canada, the United States, and Mexico commits the three countries to open trade policies.
USA and Mexican negotiators worked over the weekend to narrow their differences.
"We could have a separate deal, or we could put it into this deal". The new rules would also likely require key components to have more domestic content.
Trump has promised to dismantle (or at least overhaul) the historic agreement for years.
Trump, rebuking decades of free-trade orthodoxy that helped to define the modern Republican Party, has complained time and again that NAFTA is unfair to America. "We'll see if Canada can be part of the deal", he said.
Negotiatons with Canada and the United States, Trump said, will start immediately. "A lot of people thought we would never get here because we all negotiate tough". He then threatened Canada with new tariffs on cars if it didn't come to a trade agreement with with the USA, which he said could be bilateral.
She now is on a European trip but Guajardo said last week Freeland had indicated she would be available as soon as the United States and Mexico were ready to move to the next phase.
Adam Austen also wrote in an email that Canada would continue to work toward a modernized NAFTA. Trump says, "If they'd like to negotiate fairly, we'll do that".
"This is something that is very special for our manufactures and our farmers", Trump said. Canada and the USA are both on the eve of contentious mid-term elections, which could affect the timeline of the negotiations.
Trump tweeted on Monday morning: "A big deal looking good with Mexico!". Even once Canada agrees, any NAFTA deal between the three countries would have to be ratified. The announcement of a U.S. -Mexico agreement lifted financial markets.