Donald Trump has reversed course and told Mexican and Canadian leaders he will not be pulling the US out of the NAFTA agreement. 

The White House made the surprise announcement in a read-out of calls Wednesday between the world leaders.

It stated the president had: ‘agreed not to terminate NAFTA at this time’.

Instead, Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau ‘agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation’ of the trade deal to ‘the benefit of all three countries.’

Trump has previously blamed NAFTA for American job losses, and regularly described it as a ‘disaster’ during his campaign.

The decision to continue with the trade agreement came just hours after a senior official said Trump was considering issuing an executive order to pull out of it.

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