President Donald Trump hailed Canada on Monday after the two countries forged a last-minute deal to salvage their trilateral NAFTA accord with Mexico, marking a key victory in the U.S. leader's effort to shake up global trade.

The deal, announced on Sunday, is a reworking of the 1994 North American Free Trade Agreement, which underpins USD 1.2 trillion in trade between the three countries. Trump had described NAFTA as a bad deal for Americans and threatened to eliminate it as part of his "America First" agenda.

The new United States-Mexico-Canada Agreement (USMCA) is aimed at bringing more jobs into the United States, with Canada and Mexico accepting more restrictive commerce with the United States, their main export partner.

While changing NAFTA and bringing down U.S. trade deficits was a top Trump campaign pledge, Sunday's agreement largely leaves the broad deal intact and maintains current supply chains that would have been fractured under weaker bilateral deals.

The pact preserved a key trade dispute settlement mechanism sought by Canada even as Ottawa agreed to open up its dairy markets to U.S. farmers. It will also make it harder for global auto makers to build cars cheaply in Mexico.

The United States and Mexico clinched a bilateral agreement in late August. U.S. officials intend to sign the new trilateral deal by November 30.

The Canadian dollar strengthened to a four-month high against the USD on Monday after a last-minute deal to salvage the trilateral NAFTA trade pact supported bets for another Bank of Canada interest rate hike as soon as this month.

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