Once a U.S. -Mexico agreement is reached, Canada is expected to rejoin the negotiation. The Mexican president said he wanted the former.
Automakers are climbing as investors hope the agreement will prevent tariffs on imported cars. "We're going to call it the US-Mexico Trade Agreement".
U.S., Mexican and Canadian stocks opened higher on Monday on optimism about a trade deal. However, the Mexican president said that Canada should now be incorporated into the deal.
Talks to overhaul the Nafta agreement began a year ago and have proven contentious.
Throughout his campaign and his presidency, Trump has railed against the agreement, arguing that it was "a bad deal" for the United States, and "the worst trade deal maybe ever signed, anywhere.nothing will ever top NAFTA".
Oil price leaps to $74 per barrel as USA inventory drops
The US directive came after withdrawing from the Iran Nuclear Deal in May and reimposing sanctions on Iranian oil exports. In May, the difference between crude oil exports and imports increased even further, to 470,000 barrels per day.
Trump said the US has yet to begin negotiations with Canada. "A lot of people thought we would never get here because we all negotiate tough".
U.S. Trade Representative Robert Lighthizer also said the deal will be likely signed-off in November and sent to Congress on Friday. The mesh of supply chains that have emerged in the 24 years since Nafta first went into effect are staggeringly complex, and disrupting them could cause serious economic damage. However, President Trump considers NAFTA "one of the worst deals" in trade history, and in his ongoing global trade war, he has mentioned wanting to rewrite the deal.
In May, the United States imposed steep tariffs on steel and aluminum from much of the world, including Mexico.
"This is something that is very special for our manufactures and our farmers", Trump said.
Adam Austen, a spokesman for the Canadian Foreign Minister, says Canada had been in regular contact with the NAFTA negotiators. But the countries still must resolve hard issues, including US complaints about Canada's protection for its dairy farmers and the way disputes are resolved under NAFTA.
Once the closest of allies, the USA and Canada have adopted divergent paths in recent years.
MSCI's gauge of stocks in 47 countries across the globe gained 0.91 per cent, helped by gains in developed markets from the U.S.to Europe and Asia.
Despite Guajardo's comments, the White House tweeted about an hour later that U.S. President Donald Trump will make an announcement on trade at 11 a.m. ET from the Oval Office. It would also require 40% to 45% of the vehicle to be made by workers earning at least $16 an hour.