Nafta: US and Canada 'reach new trade deal'

Nafta: US and Canada 'reach new trade deal'
Nafta: US and Canada 'reach new trade deal'
Image copyright AFP Image caption Relations between US President Donald Trump and Canadian Prime Minister Justin Trudeau have occasionally been fraught

The US and Canada are reported to have reached a deal to reform the North American Free Trade Agreement (Nafta) after last minute negotiations.

The deal is said to involve more US access to Canada's dairy market and a cap on Canada's car exports to the US.

Nafta governs more than $1tr (£767 bn) in trade between the two and Mexico.

Mexico and the US have already agreed new terms, and only recently it looked as if Canada could be excluded in a final agreement.

A protectionist policy under the US President Donald Trump has seen the US forge ahead with individual trade deals, rejecting bigger multi-lateral trade agreements and posing a challenge to decades of global free trade.

Mr Trump earlier this year imposed taxes on imports from Mexico and Canada - and the two countries retaliated.

The Trump administration set Sunday as a deadline for Canada to strike a deal.

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