Trudeau, Trump have 'constructive conversation' on US-Mexico NAFTA deal

After the United States and Mexico agreed to revamp the NAFTA deal, Canadian Prime Minister Justin Trudeau's office announced that US President Donald Trump and Trudeau had a "constructive conservation" about trade.

"The prime minister had a constructive conversation today with President Trump regarding the North American Free Trade Agreement," Trudeau's office said in a statement.

The statement added that both the leaders "welcomed the progress" that has been made with respect to Mexico.

"The leaders welcomed the progress that has been made in discussions with Mexico and look forward to having their teams engage this week with a view to a successful conclusion of negotiations," Trudeau's office stated. 

Meanwhile, Trudeau has already sent his trade negotiator, Foreign Minister Chrystia Freeland, to Washington for talks on Tuesday.

The White House and Mexico City agreed to overhaul the North American Free Trade Agreement (NAFTA) on Monday, a move that will pressure Canada to agree to the new terms on auto trade and other issues to remain part of the three-nation pact.

US President Donald Trump and outgoing Mexican President Enrique Pena Nieto said talks with Canada would begin immediately, though Trump threatened he could put tariffs on Canadian-made cars if a three-way deal could not be reached.

"I think with Canada, frankly, the easiest we can do is to tariff their cars coming in. It's a tremendous amount of money and it's a very simple negotiation. It could end in one day and we take in a lot of money the following day," Trump said.

Negotiations between the three trade partners have dragged on for more than a year and repeated threats by Trump that he would ditch the 1994 accord have roiled financial markets, putting pressure on the Mexican peso and the Canadian dollar.

(With inputs from agencies)