US, Canada and Mexico sign new trade deal at G20 summit

Leaders from the US, Canada and Mexico meeting at the G20 summit in Buenos Aires on Friday signed a new trade agreement that will replace NAFTA.

“It is probably the largest trade deal ever made," said President Trump after signing.

The deal, which was described by president Trump as “a model agreement”, required a year of negotiations as Trump tried to convince the leaders of Canada and Mexico to agree to new rules on trade in North America.

Trump vowed to change NAFTA during his 2016 presidential election campaign. At certain points during the negotiation, he threatened to withdraw the US unilaterally, which would have left trade between the three countries in disarray.

Yet the US Congress had yet to sign-off on the new deal, branded USMCA (United States Mexico Canada Agreement), which might prove a larger challenge for Trump, especially following the mid-term elections, which saw the Democrats take control of the House of Representatives.

"I don't expect to have much of a problem," Trump said during the ceremony.