Trump won't scrap Nafta trade deal 'at this time'

US President Donald Trump has told Mexico and Canada 
he wants to renegotiate - not scrap - the North American 
Free Trade Agreement.

Media reports on Wednesday had suggested Mr Trump 
was drafting an executive order to end the pact.

During his election campaign Mr Trump called Nafta the "single worst trade deal ever" and a "killer" of US jobs.

The reversal surprised markets, sending the Mexican 
peso and Canadian dollar higher after losses earlier this
 week.

The White House said it had "agreed not to terminate
 NAFTA at this time" and that the Mexican and Canadian leaders had "now agreed to proceed swiftly to renegotiate...
 to enable the renegotiation of the Nafta".

Mr Trump's comments on Nafta come just days after the 
US imposed a new tariff on softwood lumber coming from Canada.

He also called a new Canadian tariff regime affecting US 
dairy products a "disgrace".

On Tuesday, the US lost a trade battle with the other Nafta
signatory.

The World Trade Organization ruled that Mexico could
 impose more than $160m (£125m) annually in sanctions against the US on commerce in tuna, capping a dispute 
dating back to 2008.

Early in his presidency, Mr Trump fulfilled a campaign 
pledge by signing an executive order to withdraw from the Trans-Pacific Partnership (TPP).

The 12-nation trade deal was a linchpin of former
 President Barack Obama's Asia policy.