Canada and the United States have reached an new trade agreement based on the North American Free Trade Agreement (NAFTA), but it is still awaiting final approval, Canadian media reported on Sunday night.

A joint statement from Canadian Foreign Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer is expected soon.

According to the CTV Television Network, a senior Canadian official said the deal is not 100 percent finalized, but as things stand, the Chapter 19 dispute resolution mechanism remains intact.

Canada will have a full cultural exemption, and will be making "modest" concessions on access to the country's supply-managed dairy sector, the official noted.

The official said an exemption will be made for autos, though the steel and aluminum tariff issues remain unsolved.

The deal on the table is subject to the approval of the federal cabinet, which is convened right now in Ottawa.

Canadian Prime Minister Justin Trudeau called the cabinet meeting on 10 p.m. Sunday (0200 GMT Monday) inside his office across the street from Parliament Hill, said the CTV.

Talks on renegotiating the NAFTA, a trilateral trade deal that also involves Mexico, began in August 2017 as U.S. President Donald Trump threatened to withdraw from it claiming it harmed U.S. industries and jobs.

The United States has pressured Canada to accept the preliminary agreement it struck with Mexico last month. 

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