US, Canada deal saves NAFTA as a trilateral pact

OTTAWA/WASHINGTON - The United States and Canada forged a last-gasp deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, rescuing the three-country, $1.2 trillion open-trade zone that had been about to collapse after nearly a quarter-century.

In a big victory for his agenda to shake-up an era of global free trade that many associate with the signing of NAFTA in 1994, US President Donald Trump virtually forced Canada and Mexico to accept more restrictive commerce with their main export partner.

Trump's primary objective was to bring down the US trade deficit.