The U.S. and Canada forged an 11th hour trade deal late Sunday that will replace the three-nation framework of the original North American Free Trade Agreement.

The new deal, called the U.S.-Mexico-Canada Agreement, represented a "big win" for the White House and a "validation" of President Trump's trade strategy, a senior Trump administration official told reporters on a call Sunday evening.

Another official touted the deal as a "great step" for North American relations, as well as its enforceability using measures under the pact and U.S. law before it is periodically reviewed.

The officials specifically promoted USMCA's intellectual property provisions, new rules of origin for the automobile industry, and labor requirements as ways to encourage investment and production in the U.S. in a boon for the economy.

In a joint statement released during the call, U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland emphasized USMCA would give "workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region."

"It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North American home," they continued. "We would like to thank Mexican Economy Secretary Ildefonso Guajardo for his close collaboration over the past 13 months."


The White House was required to give Congress the text of a proposed trade deal with Mexico by midnight to proceed under complicated "fast track" trade rules. Trump had left the door open to including Canada when he sent a formal one-month notice to Congress in August.

White House trade adviser Peter Navarro told Fox News Sunday morning that after hearing from the U.S. negotiating team, there was "broad agreement" on some matters, but there was still a lack of consensus with Canada on the country's dairy market, the potential of U.S.-imposed auto tariffs, and support for continued trade dispute-resolution panels.

In off-the-record comments to Bloomberg in August, Trump disclosed he would make no trade concessions with Canada. The remarks were made public, but Trump said he was glad that Canada understood his position amid ongoing negotiations. Tensions were also on display last week when Trump refused to meet Canadian Prime Minister Justin Trudeau at the United Nations General Assembly meeting in New York City.

The political and economic stakes were high for both countries. Canada sends roughly 75 percent of its exports to the U.S., and Trump had threatened import duties. But prominent business groups like the U.S. Chamber of Commerce advocated for a trilateral pact to replace 25-year-old NAFTA, and if Canada wasn't included, the U.S.-Mexico agreement could have faced more difficulties before Congress.

USMCA is expected to be signed by the leaders of the three nations, including outgoing Mexican President Enrique Peña Nieto, within the next 60 days. The treaty will likely be considered by Congress as part of the ratification process in 2019, which could have implications if Democrats control the House or Senate after the 2018 midterm elections.

Trump railed against NAFTA during his 2016 presidential campaign, promising voters a new deal with more favorable terms for the U.S. USMCA could give him fodder as he stumps for Republican candidates ahead of the November elections.

Steven Nelson and Daniel Chaitin contributed to this report.