"In a sense, we look at this as something that does have a constructive message both for North American trade and for fears around trade wars more broadly", Bruce Kasman, a JP Morgan economist, said.
The organization said the newly minted U.S. -Mexico-Canada Trade Agreement, or USMCA, will grant an expanded 3.6 per cent market access to the domestic dairy market and eliminate competitive dairy classes, which the group says will shrink the Canadian industry.
But it keeps a North American Free Trade Agreement (NAFTA) dispute-resolution process that the USA wanted to jettison and offers Canada protection if President Trump goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the U.S.
The United States and Mexico want to push a deal they separately negotiated through their respective legislatures before Mexican President-elect Andres Manuel Lopez Obrador takes office on December 1.
Canada's The Globe and Mail cited four sources as saying an outline of a deal had been reached but Trump and Trudeau still needed to approve it. Under the new agreement, three-quarters of a car's parts must originate from North America in order to be exempt from duties.
Ambassador David McNaughton said Sunday evening in Ottawa there are a couple of tough issues left to resolve.
The deal doesn't resolve the dispute over USA tariffs on steel and aluminum imports from Canada and Mexico - or the retaliatory tariffs that each country placed on them.
Following the Cabinet meeting, Trudeau said it was "a good day for Canada", while Jesus Seade, the trade negotiator for Mexico's incoming president, tweeted that the deal meant "the door closes on trade fragmentation in the region".
"There could be Democratic support for this" as it contains provisions favorable to American labor - a traditional backer of the Democratic Party, National Economic Council Director Larry Kudlow tells VOA. "I think Justin's a good person who's doing a good job". It was not created to be a Republican-only agreement.
On dairy the official said Canada essentially gave the USA the same access it offered in the Trans Pacific Partnership trade agreement that President Donald Trump rejected.
But in agreeing to the terms of the new deal, Canada avoided doomsday scenarios that had been hanging over the country for months, particularly Trump's threat of punitive tariffs on auto imports that would have caused major economic fallout.
The metal tariffs discussions are on a "completely separate track", according to a senior US official.
On the campaign trail, Donald Trump harshly criticized free trade deals, threatening to withdraw the USA from the Trans-Pacific Partnership as well as the North American Free Trade Agreement, which he called "the worst trade deal".
The US had imposed a deadline of midnight on Sunday for differences to be settled.
"So it's about USA farmers winning and Canadian farmers losing".
The deal comes after a week of intense negotiations between United States and Canadian officials working under a self-imposed deadline of Sunday night. Additionally, exclusivity for biologic drugs before generics can be produced will be increased to 10 years in Canada from eight years, a win for the pharma industry.
La Broquerie, Man., dairy farmer Peter de Jong milks a thousand head of cattle. Voters in Quebec, home to 354,000 dairy cows - the most of any province - head to the polls for provincial elections Monday, which cast a shadow over the last-minute negotiations.
The United States' copyright period generally lasts 70 years after the creator's death, which the new agreement isn't going to change.
The terms reached between the US and Mexico on higher wage thresholds will also be positive for Canadian producers, said Unifor president Jerry Dias, who welcomed the deal.