Nafta

He promises a "glorious future" for the US industry.

President Donald Trump has signed a new North American trade pact with Canada and Mexico, promising a "glorious future" for US industry.

The treaty, drafted during the years of negotiations between the three countries, replaces the 1994 North American Free Trade Agreement or NAFTA.

Canada is increasingly convinced that President Donald Trump will soon announce the United States intends to pull out of NAFTA, two government sources said on Wednesday, sending the Canadian and Mexican currencies lower and hurting stocks, according to Reuters.

U.S., Canadian and Mexican negotiators are zeroing in on ways to enshrine Mexican President Enrique Pena Nieto's sweeping energy reforms into a modernized North American Free Trade Agreement, Mexico's chief negotiator said on Sept. 3.

In the opening NAFTA session of talks, the United States did not give precise details of how much it wanted to boost North American content for autos, a source directly familiar with the negotiations said on Aug. 19.

The United States won't settle for cosmetic changes to the North American Free Trade Agreement, the top U.S. trade negotiator said, as negotiations to rework terms of the pact began.

U.S. President Donald Trump has called the 23-year-old trade pact the "worst" in history and vowed to fix it - or withdraw from it.

As the United States, Canada and Mexico kick off negotiations on Aug. 16 to modernize the North American Free Trade Agreement, the biggest uncertainty is whether a deal can pass President Donald Trump's "America First" test.

Canada and Mexico agreed on Nov. 10 to U.S. President-elect Donald Trump's demand to have a fresh look at their tripartite 22-year-old free trade pact, fearing they could be shut out of the US market.

But the two U.S. allies diverged on the level of changes to the North American Free Trade Agreement (NAFTA) each was willing to accept, with Mexico taking a harder line.