Trump announces new U.S.-Mexico trade deal, eliminating NAFTA name

If finalized, the agreement would give President Trump a partial victory in his ongoing trade war with Mexico, Canada, China and the EU.

The Trump administration has reached a breakthrough in NAFTA talks with Mexico, clearing the way for Canada to return to the bargaining table for a mad dash to conclude a final deal.

There is no deal reached yet with Canada, the people said.

The trilateral treaty has been a key target in Trump's aggressive trade strategy, and he has repeatedly threatened to scrap it altogether, branding it a "disaster". Meanwhile, the Mexican economy minister said Mexican and US officials were nearing an agreement.

The U.S. and Mexico are hoping for a full deal with Canada by the end of the week, so current Mexican President Enrique Pena Nieto can sign it before he leaves office December 1.

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The Trump administration has alluded in recent weeks to the possibility that the US was close to a deal on making changes to NAFTA on a bilateral basis with Mexico.

"A big deal looking good with Mexico!" Mr. Trump tweeted Monday morning, making no mention of Canada.

Foreign Affairs Minister Chrystia Freeland is in Germany on Monday, but received updates from both the Americans and the Mexicans throughout the weekend. We are in regular contact with our negotiating partners, and we will continue to work toward a modernized NAFTA.

Austen said Canada remains "in regular contact" with the US and Mexico on NAFTA-related issues and will "only sign a new NAFTA that is good for Canada and good for the middle class".

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