President Donald Trump has told the leaders of Mexico and Canada that he will not pull out of the North American Free Trade Agreement. Instead, he is looking to renegotiate a better deal for all three countries.
The announcement came hours after administration officials said the president was considering a draft executive order to pull out.
The White House is now working toward renegotiations with Mexican President Enrique Peña Nieto and Canadian Prime Minister Justin Trudeau.
"President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries," said the White House.
President Trump said that "the end result will make all three countries stronger and better."
The Mexican government confirmed the conversation in a statement issued Wednesday.
"The leaders agreed on the convenience of maintaining the North American Free Trade Agreement and working together with Canada to carry out a successful renegotiation for the benefit of all three countries," the statement read.
Trudeau's office also issued a brief statement saying "the two leaders continued their dialogue on Canada-U.S. trade relations, with the Prime Minister reinforcing the importance of stability and job growth in our trade relations."
Trump could still withdraw from NAFTA. If he does, he has to give six months' notice.