Donald Trump has revealed he backed down on pledges to scrap the North American Free Trade Agreement (Nafta) after calls from the leaders of Canada and Mexico.
He said that he had received calls from the two countries' leaders asking him to "renegotiate Nafta rather than terminate". His disclosures came a day after he told leaders of the two countries that he wouldn't end the trade pact, and just days after the White House said that the President was considering quitting it entirely.
The free trade agreement may still be terminated if "we do not reach a fair deal for all", he posted on Twitter.
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The controversial orders Donald Trump has already issued
Show all 9
The controversial orders Donald Trump has already issued
1/9 Trump and the media
White House Press Secretary Sean Spicer takes questions during the daily press briefing
Getty Images
2/9 Trump and the Trans-Pacific Partnership
Union leaders applaud US President Donald Trump for signing an executive order withdrawing the US from the Trans-Pacific Partnership negotiations during a meeting in the Roosevelt Room of the White House in Washington DC.
Mr Trump issued a presidential memorandum in January announcing that the US would withdraw from the trade deal
Getty
3/9 Trump and the Mexico wall
A US Border Patrol vehicle sits waiting for illegal immigrants at a fence opening near the US-Mexico border near McAllen, Texas. The number of incoming immigrants has surged ahead of the upcoming Presidential inauguration of Donald Trump, who has pledged to build a wall along the US-Mexico border.
A signature campaign promise, Mr Trump outlined his intention to build a border wall on the US-Mexico border days after taking office
Getty Images
4/9 Trump and abortion
US President Donald Trump signs an executive order as Chief of Staff Reince Priebus looks on in the Oval Office of the White House.
Mr Trump reinstated a ban on American financial aide being granted to non-governmental organizations that provide abortion counseling, provide abortion referrals, or advocate for abortion access outside of the United States
Getty Images
5/9 Trump and the Dakota Access pipeline
Opponents of the Keystone XL and Dakota Access pipelines hold a rally as they protest US President Donald Trump's executive orders advancing their construction, at Columbus Circle in New York.
US President Donald Trump signed executive orders reviving the construction of two controversial oil pipelines, but said the projects would be subject to renegotiation
Getty Images
6/9 Trump and 'Obamacare'
Nancy Pelosi who is the minority leader of the House of Representatives speaks beside House Democrats at an event to protect the Affordable Care Act in Los Angeles, California.
US President Donald Trump's effort to make good on his campaign promise to repeal and replace the healthcare law failed when Republicans failed to get enough votes. Mr Trump has promised to revisit the matter
Getty Images
7/9 Donald Trump and 'sanctuary cities'
US President Donald Trump signed an executive order in January threatening to pull funding for so-called "sanctuary cities" if they do not comply with federal immigration law
AP
8/9 Trump and the travel ban
US President Donald Trump has attempted twice to restrict travel into the United States from several predominantly Muslim countries. The first attempt, in February, was met with swift opposition from protesters who flocked to airports around the country. That travel ban was later blocked by the Ninth Circuit Court of Appeals.
The second ban was blocked by a federal judge a day before it was scheduled to be implemented in mid-March
SANDY HUFFAKER/AFP/Getty Images
9/9 Trump and climate change
US President Donald Trump sought to dismantle several of his predecessor's actions on climate change in March. His order instructed the Environmental Protection Agency to reevaluate the Clean Power Plan, which would cap power plant emissions
Shannon Stapleton/Reuters
1/9 Trump and the media
White House Press Secretary Sean Spicer takes questions during the daily press briefing
Getty Images
2/9 Trump and the Trans-Pacific Partnership
Union leaders applaud US President Donald Trump for signing an executive order withdrawing the US from the Trans-Pacific Partnership negotiations during a meeting in the Roosevelt Room of the White House in Washington DC.
Mr Trump issued a presidential memorandum in January announcing that the US would withdraw from the trade deal
Getty
3/9 Trump and the Mexico wall
A US Border Patrol vehicle sits waiting for illegal immigrants at a fence opening near the US-Mexico border near McAllen, Texas. The number of incoming immigrants has surged ahead of the upcoming Presidential inauguration of Donald Trump, who has pledged to build a wall along the US-Mexico border.
A signature campaign promise, Mr Trump outlined his intention to build a border wall on the US-Mexico border days after taking office
Getty Images
4/9 Trump and abortion
US President Donald Trump signs an executive order as Chief of Staff Reince Priebus looks on in the Oval Office of the White House.
Mr Trump reinstated a ban on American financial aide being granted to non-governmental organizations that provide abortion counseling, provide abortion referrals, or advocate for abortion access outside of the United States
Getty Images
5/9 Trump and the Dakota Access pipeline
Opponents of the Keystone XL and Dakota Access pipelines hold a rally as they protest US President Donald Trump's executive orders advancing their construction, at Columbus Circle in New York.
US President Donald Trump signed executive orders reviving the construction of two controversial oil pipelines, but said the projects would be subject to renegotiation
Getty Images
6/9 Trump and 'Obamacare'
Nancy Pelosi who is the minority leader of the House of Representatives speaks beside House Democrats at an event to protect the Affordable Care Act in Los Angeles, California.
US President Donald Trump's effort to make good on his campaign promise to repeal and replace the healthcare law failed when Republicans failed to get enough votes. Mr Trump has promised to revisit the matter
Getty Images
7/9 Donald Trump and 'sanctuary cities'
US President Donald Trump signed an executive order in January threatening to pull funding for so-called "sanctuary cities" if they do not comply with federal immigration law
AP
8/9 Trump and the travel ban
US President Donald Trump has attempted twice to restrict travel into the United States from several predominantly Muslim countries. The first attempt, in February, was met with swift opposition from protesters who flocked to airports around the country. That travel ban was later blocked by the Ninth Circuit Court of Appeals.
The second ban was blocked by a federal judge a day before it was scheduled to be implemented in mid-March
SANDY HUFFAKER/AFP/Getty Images
9/9 Trump and climate change
US President Donald Trump sought to dismantle several of his predecessor's actions on climate change in March. His order instructed the Environmental Protection Agency to reevaluate the Clean Power Plan, which would cap power plant emissions
Shannon Stapleton/Reuters
He claimed that the relationship between the three countries was "good". It comes just two days after a series of rambling and confused attacks on Canada over its policy on milk.
He attacked Canada's decision to reduce the price of some milk products, writing on Twitter that "Canada has made business for our dairy farmers in Wisconsin and other border states very difficult". He went on to warn "We will not stand for this. Watch!"
Mexico's foreign minister appeared to agree with Mr Trump that the country was improving its relationship with the President.
Relations between the United States and Mexico have seen "enormous progress" during the first months of the administration of U.S. President Donald Trump, Mexican Foreign Minister Luis Videgaray said.
"We have generated a respectful dynamic through dialogue ... we've advanced enormously in the correct direction," Videgaray told local broadcaster Televisa in an interview.
The cancellation of Nafta had been a central part of Mr Trump's election campaign, and he regularly criticised Hillary Clinton for having approved of it. The deal was signed in the early 1990s, since when the United States has gone from running a small trade surplus with Mexico to a $63 billion deficit in 2016.
But the President said he had changed his mind since speaking to the leaders of the other countries which are party to the agreement, Mexico and Canada. Nevertheless, other members of his administration echoed his threat that he could still pull out if the US didn't get more favourable terms.
The three North American countries form one of the world's biggest trading blocs, and disruption could wreak havoc in the auto, agricultural and other industries.
The Mexican and Canadian currencies maintained their rebound early on Thursday after Trump's latest comments. The U.S. dollar dropped nearly 0.3 per cent against its Canadian counterpart and about 1 per cent against the peso.
U.S. Commerce Secretary Wilbur Ross told CNBC on Thursday that numerous "conceptual flaws" in the treaty needed to be addressed.
"Nafta needs tightening," Ross said, adding that more should be done to ensure that participants in the bloc have a trade advantage over other countries.
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