Canadian Prime Minister Justin Trudeau, who sparred for months with Trump, tweeted: "a good day for Canada & our closest trading partners".
Steel and aluminum producers, however, came away disappointed with no deal in place to lift the tariffs the USA imposed on their products at the end of May.
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. (Note that experts say NAFTA both cost and created jobs.) So this new pact counts as a victory for Trump now that he's been able to alter the original agreement and get Mexico and Canada on board for a new deal.
The U.S. and Mexico came to a deal at the end of August that will be part of the overarching agreement that includes Canada.
The deal opens up market access for US farmers who want to bring dairy, eggs and poultry into Canada - what some in those supply-managed sectors are describing as a serious blow - but made no major concessions on the import and export of beef, pork and grain. The investor-state dispute-settlement system, which allows investors to bring grievances against member-country governments, will be phased out for the U.S. and Canada, while certain industries such as energy will be able to bring cases against Mexico.
The measures in the new deal - which Mr Trump dubbed "US MCA" - "will support many - hundreds of thousands - American jobs".
Mexico-Canada Agreement to Replace NAFTA after Last-Minute Deal
The news delighted financial markets that had fretted for months about the potential economic damage if NAFTA blew up. Most of the "substantive work" has been completed, with a "handful" of details remaining, the newspaper reported .
Jesus Seade, the negotiator for lefty Mexican President-elect Andres Manuel Lopez Obrador, said, "NAFTA 2 will give certainty and stability to trade".
After the agreement is signed, the Trump administration will work with Congress to identify any changes to USA law that are needed to harmonize with the global deal.
The president said he was having a "successful negotiation" with the EU.
Canada will open its dairy market further to United States producers, and Washington left unchanged the dispute settlement provisions which Ottawa demanded. President Trump weighed in on the name during a Monday press conference, saying, "It has a good ring to it".
So much American trade depends on the 1994 deal that US financial markets were jittery about a possible collapse of negotiations - and because Mr. Trump made campaign promises to get rid of NAFTA. Meanwhile, Canada and Mexico tend to be more focused on consumer protections. Washington has already reached a bilateral deal with Mexico, the third NAFTA member. And the so-called "proportionality rule", which required Canada to maintain its proportion of energy exports to the US, is also gone.
Laycraft said uncertainty and tariffs could have had a "horrible impact" on Canada's beef industry if a deal had not been reached, because the supply chains between Canada and the USA are deeply integrated. "Guest worker programs do not belong in trade agreements, period, because we give up control of them to an worldwide bureaucracy, not Congress. U.S.jobs should not be a bargaining chip in trade agreements". "By doing so, it is slowly bleeding Canada's dairy sector". "It's a privilege for them to do business with us", he said. According to the Toronto Star's Daniel Dale, a side letter would exempt 2.6 million of Canada's annual auto imports from potential Section 232 tariffs on automobiles in the future.