The US and Canada have signalled that they are close to finalising a comprehensive trade deal after President Donald Trump paused the implementation of a new round of crippling tariffs.
"We've come to a deal with Canada," Trump said on Wednesday, adding that it's "subject to finalisation of documents."
He later added: "We may bring some of the tariffs down to a level where other countries are, because Canada was paying a higher tariff."
He said the agreement would eliminate tariffs on US farmers exporting to Canada, describing the outcome as "a very good deal for both" countries.
"Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated down to zero," the president added.
Canadian Prime Minister Mark Carney was more cautious, saying on social media that Ottawa and Washington "are now moving towards an agreement."
The planned US tariffs, set at 50 percent, were originally due to take effect on Wednesday on select Canadian goods.
But Trump announced late Tuesday that he would delay their rollout by three days as both sides worked to finalise a deal.
Collective work
Carney on Wednesday applauded his Canada-US trade minister, Dominic LeBlanc, and Trump's top negotiator Jamieson Greer, for "significant progress" in the negotiations.
LeBlanc, in a separate social media post, said he met again with Greer in Washington on Wednesday and that both sides were "working collaboratively towards a finalised agreement."
Emerging from the meeting, Greer, who is the US trade representative, expressed confidence that they have a pact that will "strengthen the North American economy."
"While we certainly, I think, have eliminated some of the irritants that we've had over the past year, we also are taking a strong foot forward on the next steps," he said, according to CNBC.
In announcing the 50-percent tariffs, the White House alleged "discriminatory treatment" by Canada against US alcohol, automobile, and dairy products.
Carney said the deal secures "the best terms in each of Canada's most important strategic sectors and (provides) greater certainty about our future trading relationship."
Canada also confirmed on July 1 that it wanted to renew the existing North American Free Trade Agreement, but Trump declined, demanding substantial changes.
The sides have been engaged in intense talks for weeks on a revised agreement.
