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It is the biggest-ever and the best trade deal in the world - that's how U.S. President Donald Trump and members of his administration are touting a new trade pact they have reached with neighbors Canada and Mexico.

After more than a year of negotiations, the 25-year-old North American Free Trade Agreement (NAFTA) is to be replaced by a new United States-Mexico-Canada Agreement (USMCA).

USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. And U.S. dairy farmers may be able to sell a bit more to Canada. "We never believed that it would be easy, and it wasn't, but today is a good day for Canada".

US President Donald Trump on October 1 threatened to impose new tariffs on additional $267 billion worth of imports from China and asserted that there will be no deal with Beijing unless it changes its unfair trade practices.

While Peter Navarro, the director of the White House National Trade Council, said the new deal means that "NAFTA is dead", the USMCA still retains large swaths of the original deal.

Canadian Prime Minister Justin Trudeau said repeatedly that he wanted to keep so-called "Chapter 19", which allows for a special dispute process, in place and that's exactly what happened.

Referring to his trade war with China, Trump told reporters at a White House news conference that China wanted to talk to the United States very badly, but he was not ready yet.

The new deal, which also includes Mexico, will give the US greater access to Canada's protected dairy market and eliminate its new milk pricing system, one that's been repeatedly attacked by President Donald Trump.

The White House's Peter Navarro said "everybody's speaking in good faith right now as we speak", on Fox Sunday.

Other compromises were reached on protecting Canada from possible auto tariffs, and raising the value of goods Canadians can order online from outside the country without paying duty, the source said.

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It follows months of friction over the deal between President Trump and Canadian Prime Minister Justin Trudeau. "I don't want them to have a hard time", Trump said.

They noted that the accord would come up for review every six years, which they said would give the USA significant leverage if Canada or Mexico don't comply with any parts of it. "We weren't at the table or maybe the deal would have been a little different".

American negotiators say they got a major victory by forcing Canada to eliminate the pricing scheme for so-called "Class 7" dairy products. Any dairy imports above the 3.6-per cent threshold still face Canada's punishing tariffs, which were a sticking point in negotiations with the U.S.

The AFL-CIO, a Washington-based federation representing millions of unionized employees, said it was too early to "make a final judgment" on the new deal's impact on working people.

The US President described India as a "tariff king" as he reiterated his allegations that New Delhi has a high tariff rate on various American products.

We also remain concerned about the remaining steel and aluminum tariffs.

"This is a very very big deal for our farmers". "China wants to talk, very badly", said the president.

Trump had made criticism of NAFTA a centerpiece of his successful 2016 election campaign, terming it the worst trade deal in history and blaming NAFTA for the loss of American manufacturing jobs since it went into effect in 1994.

Analysts varied Monday on the extent that the trade deal will lead to greater regionalization in the auto industry or boost U.S. auto manufacturing. American dairy products will see less duties when accessing the Canadian market, while B.C. wines will have to share grocery store shelf space with USA companies. The existence of NAFTA text that largely satisfied most parties gave negotiators solid ground to build on, but no such ground exists for the USA relationship with China.

The U.S. first proposed phasing out Canada's dairy system in NAFTA talks and eventually sought more moderate demands.