NAFTA is the biggest free trade agreement in the world with a common market of some 460 million people and has knit together the economies of Canada, Mexico and the USA since it entered into force in 1994.
"Canada is prepared for every eventuality, and that is a whole of government preparation".
A day after Canadian officials said they viewed the odds of withdrawal as rising, Trump repeated his threat to pull out of the North American Free Trade Agreement if it can't be reworked in his favor, the Wall Street Journal reported Thursday, citing an interview with the president.
His comments were made a day after Canada filed with the World Trade Organization (WTO) almost 200 complaints that Americans breeched global trade rules.
"I have said so before, I am optimistic about the possibility of getting a deal which benefits the three member states", Pena Nieto said during a speech in Mexico City, Reuters reports.
"We are focused on achieving real progress, including in Montreal later this month."
Talks to overhaul the trade agreement among the United States, Canada and Mexico began in August. In this sense, he adds that he is "leaving a little bit of flexibility" until y are held in ballot box on July 1.
"The market's been too complacent regarding NAFTA termination risk for too long", said Bipan Rai, a Toronto-based foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce.
The sources said they expected Trump would make his move at about the same time that negotiators from the United States, Canada and Mexico meet in late January for the sixth and penultimate round of talks to modernize the treaty.
Canadian officials say if Trump does announce a USA withdrawal, it could be a negotiating tactic created to win concessions.