US President Donald Trump has struck a deal with Mexico on trade, but said he was terminating the existing North American Free Trade Agreement.
The NAFTA pact, which has been in existence for over two decades, was the subject of renegotiation between its constituent members, the US, Canada and Mexico.
Mr Trump said the deal struck with Mexico was a 'really good agreement for both countries' and that it would be called the US-Mexico trade agreement.
The Mexican president, Enrique Peña Nieto, said he would like Canada to be included in the deal.
Donald Trump did not rule it out, saying they could be incorporated into the deal or negotiate a separate deal with the US.
After speaking to Mr Trump, Mr Peña Nieto reiterated that he wanted Canada to come back to the talks and complete a tri-lateral agreement this week.
The US and Mexico are hoping to get a final deal signed before Mexican President Enrique Peña Nieto leaves office on 1 December.
Earlier in the day, Mr Trump hinted that a deal was imminent by announcing on Twitter: "A big deal looking good with Mexico!"
The advisers to Mexican President-elect Andres Manuel Lopez Obrador, also hailed the new trade deal, saying it represented progress on energy and wages for Mexico's workers.
"We see the agreement announced today as a positive step, because it reduces the uncertainty about our economy and also takes into account the concerns raised by the president-elect's team," future foreign minister Marcelo Ebrard told a press conference.
In a statement this evening, the office of the Canadian Prime Minister said Mr Trudeau had spoken to the Mexican President and they shared their commitment to reaching a successful conclusion of NAFTA talks 'for all three parties.'
Canada's Foreign Minister Chrystia Freeland will travel to Washington tomorrow to continue efforts to rewrite the deal, a spokesman has said.
"As we have said all along, progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement," Ms Freeland's spokesman Adam Austen said.
However he said Canada would "only sign a new NAFTA that is good for Canada and good for the middle class. Canada's signature is required."
Later in the evening, the office of Mr. Trudeau confirmed that he and President Trump had a "constructive conversation" about trade following the deal with Mexico.
"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 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."
