U.S. officials intend to sign the agreement at the end of November, after which it will be submitted to congress for approval, a United States official said.
On the matter of Section 232 tariffs, Trump's trade weapon of choice, USA officials told a late-night conference call with reporters that the two sides had "reached an accommodation" on the issue.
The United States and Mexico had already reached an agreement on a new NAFTA in late August, and since then negotiators from Ottawa had been in Washington for continuous talks, but as of late last week officials warned time was running out.
"That will lead to a rise in trust in the US economy, so it's easy for risk sentiment to improve".
"We celebrate a trilateral deal".
Those goals were achieved in the deal reached late Sunday, according to a Canadian official with knowledge of the negotiations.
"There are several sticking points", he acknowledged.
Canada and Mexico are the United States' two biggest export markets.
The US Chamber of Commerce has said it would be "unacceptable to sideline Canada, our largest export market in the world". But details remained to be worked out Sunday evening. U.S. officials intend to sign the agreement with Canada and Mexico at the end of November, after which it would be submitted to the U.S. Congress for approval, a senior U.S. official said. They suspected that Canada, which had said it wasn't bound by USA deadlines, was delaying the talks until after provincial elections Monday in Quebec, where support for Canadian dairy tariffs runs high.
In Ottawa, PMO officials said there would be another cabinet meeting Monday and a news conference likely as well. Canadian officials were reluctant to surrender on the politically sensitive dairy issue as voters head to the polls on October 1, according to several analysts following the talks.
US and Canadian negotiators have been negotiating around the clock this weekend to make a deadline that would allow the countries to sign the deal as the final act before Mexico's outgoing President Enrique Pena Nieto leaves office at the end of November.
In addition to the changes to the dairy market in Canada, officials said it includes stronger protections for workers, tough environmental rules, and updates the trade relationship to cover the digital economy and provides "groundbreaking" intellectual property protections, the official told reporters. But López Obrador said Friday that he would not try to reopen talks, calling into question the validity of the negotiators' self-imposed deadline.
The new deal preserves a regional economic unit that enables North American manufacturers, particularly in the auto industry, to compete against global rivals.
Flags of the US, Canada and Mexico fly next to each other in Detroit, Michigan, US. Total U.S. trade with the two countries previous year topped $1.1 trillion.
According to The Washington Post, the new deal requires that 75 percent of exempt from duty to be made in North America versus 62.5 percent under NAFTA.
A central objective for the new agreement is restoring "North America as a manufacturing powerhouse" by encouraging US companies to use domestic suppliers rather than companies based elsewhere, Navarro said.
NAFTA tore down most trade barriers between the United States, Canada and Mexico, leading to a surge in trade between the three countries.
The deal also requires a higher proportion of the parts in a auto to be made in areas of North America paying at least $16 an hour, a rule aimed at shifting jobs from Mexico.
But the treaty was controversial from the start.
The agreement will increase US access to Canada's dairy market beyond Trans-Pacific Partnership levels, a senior Trump administration official said.