The US, Canada and Mexico reached a free trade agreement

The United States of America (US), Canada and Mexico have reached a North American Free Trade Agreement, according to a joint US-Canada statement.

The US-Mexico-Canada USMCA agreement, reached Sunday evening, will replace the 1994 agreement.

"The USMCA will provide our workers, farmers, growers and businesses with a quality trade agreement that will provide freer markets, fairer trade and solid economic growth in our region," the statement said.

The deal was reached just 90 minutes before a US-imposed deadline for Canada to join a deal previously reached by Mexico and Washington.

The agreement gives American farmers greater access to the Canadian milk market, but retains a dispute settlement process that the U.S. wanted to scrap and offers protection to Canada if Trump goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the U.S.

"This is a good day for Canada," Canadian Prime Minister Justin Trudeau said shortly.

Mexican negotiator Jesus Seade tweeted that Mexico was satisfied with the trilateral agreement.