Canada agreed late Sunday to join the trade deal that the United States and Mexico reached last month, with a public announcement expected before a self-imposed midnight deadline designed to allow the current Mexican president to sign the accord on his final day in office, according to two people familiar with the talks. Diplomats from all three countries engaged in a flurry of telephone consultations over the weekend, reviving hopes of preserving the three-country format of the original North American Free Trade Agreement favored by business groups and congressional Republicans. Few details of the agreement were immediately available ahead of the announcement. But Canada’s dairy management system and a dispute resolution process were among the last sticking points, according to those familiar with the talks, who spoke on the condition of anonymity to discuss confidential deliberations. The new treaty is expected to be signed by President Trump and his Canadian and Mexican counterparts in 60 days, with Congress likely to act on it next year. Administration officials anticipate a fierce political battle to win congressional approval, especially if Democrats regain control of the House of Representatives in November. “We will enter October with a trilateral North American trade deal,” said Dan Ujczo, a trade lawyer with Dickinson Wright. “This was the least difficult part. The heavy lift is going to be getting a trade deal through the next Congress in 2019 as well as ratification by Mexico’s new Congress and in Canada during a federal election year.” Securing a replacement for the nearly 25-year-old NAFTA would be a major accomplishment for Trump and his chief trade negotiator, Robert E. Lighthizer. The presiden
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