BUENOS AIRES, Nov. 30 (Xinhua) -- Canada, Mexico and the United States on Friday signed an updated version of the North American Free Trade Agreement (NAFTA), saying it will help strengthen regional ties and benefit the working class.
Canadian Prime Minister Justin Trudeau, U.S. President Donald Trump and his Mexican counterpart Enrique Pena Nieto presided over the signing of the new deal, known as the United States-Mexico-Canada Agreement (USMCA).
The three leaders gathered in Buenos Aires of Argentina for the start of the 13th Group of 20 (G20) summit.
"The agreement we have forged will allow each country to make gains individually, but also North America to strengthen and prosper even more," said Pena Nieto.
"In today's world, each country's future is strongly tied to the fate of the other nations, and in North America we have understood that," added Pena Nieto, whose six-year term concluded on Nov. 30.
The text of the USMCA must still be reviewed and approved by each country's congress before it can be made into law.
A new deal was negotiated after Trump took office, who promised to secure better terms for the U.S. industry and workers. Among other things, the USMCA increased from 62.5 percent to 75 percent the level of North American parts that must go into vehicles produced in the region to qualify for tariff-free treatment.
Trump hailed the deal as the biggest and most balanced trade agreement in history, adding the three partners would all benefit.
Most importantly, he said, the USMCA will benefit working people, an aspect of interest to all three countries.
The USMCA replaces the NAFTA, and includes new chapters on e-commerce, intellectual property rights and other new developments in trade.
Trudeau echoed Trump's message, saying the new pact protects the middle class in Canada and generates new business opportunities.
Signing the agreement, he added, cleared away the "serious economic uncertainty" that persisted throughout the year-long negotiating process.
While barriers to free trade still exist in the region, the new deal represents a "great step" for the Canadian economy, said Trudeau.
Three-way talks to renew NAFTA began in August 2017 and stalled a few times, leading the United States to negotiate the final details separately with Mexico and later with Canada.
North America is the world's biggest free trade region, with exchange of 1.2 trillion U.S. dollars a year.
