Trump tells Canada, Mexico he won't terminate NAFTA

U.S. President Donald Trump has told the leaders of Canada and Mexico that he will not pull out of the North American Free Trade Agreement.

The White House announcement just only hours after administration officials said Trump was considering a draft executive order to do just that.

The late-night announcement was made in a read-out of calls between Trump, Prime Minister Justin Trudeau and Mexican President Enrique Pena.

It said Trump has ``agreed not to terminate NAFTA at this time'' and that the leaders have agreed to ``proceed swiftly'' to enable the renegotiation of NAFTA to the benefit of all three countries.

Trump said he believes ``the end result will make all three countries stronger and better.''

It was just last week that Trump said he planned to either renegotiate or terminate NAFTA, which he and other critics have blame for wiping out U.S. manufacturing jobs because it allowed companies to move factories to Mexico to take advantage of low-wage labour.