US President Donald Trump announced a new trade agreement with Mexico that he says will replace NAFTA.

He’s also inviting Canada to rejoin trade negotiations, while threatening auto tariffs if they can’t make a deal.

Speaking through an interpreter by conference call, Mexico’s President said several times that he wants Canada to be part of a trilateral agreement.

The agreement has been greeted with cautious optimism in the Canadian auto sector, despite renewed threats by Trump to impose tariffs. The UNIFOR President calling it “a great start”.

Prime Minister Trudeau has insisted his government will only sign a deal that’s good for Canada.

Following Trump’s announcement, Foreign Affairs Minister Chrystia Freeland cancelled the rest of a planned week-long diplomatic trip to Europe so she could to fly to Washington tomorrow to rejoin face to face negotiations.