Updated at 9:45 a.m., 11 a.m. and 11:55 a.m.: Revised with additional information and reaction, including President Donald Trump's speech in the White House's Rose Garden.

WASHINGTON — A last-minute deal reached late Sunday between the U.S. and Canada to revise the North American Free Trade Agreement is likely to ease growing anxiety over the future of a pact that's vital to the Texas economy.

The accord came after a drama-filled weekend of talks aimed at preserving the 24-year-old trilateral agreement that's helped integrate the economies of the U.S., Canada and Mexico.

President Donald Trump, who continues to call NAFTA the "worst trade deal ever made," on Monday morning hailed the breakthrough as a "historic transaction" that will solve NAFTA's "many deficiencies and mistakes," open markets for farmers and manufacturers, and boost all three nations.

"It's a ... very, very good deal for all three," he said at a ceremony in the White House' Rose Garden, naming the new NAFTA as the U.S.-Mexico-Canada Agreement or USMCA, for short. "It puts us in a position that we've never been before."

To say the negotiations have been closely watched in Texas would be an understatement.

Mexico and Canada are two of the Lone Star State's biggest trading partners, accounting last year for nearly $230 billion in total trade. Trade with Canada and Mexico also supports about 1 million jobs in Texas, according to the U.S. Chamber of Commerce.

So while stakeholders cheered in August when Trump brokered a trade deal with Mexico, business leaders and politicians in Texas and beyond stressed the need for a three-party pact.

The Trump administration has now extracted just that, compelling Canada to come back to the negotiating table just before the expiration of an artificial deadline and to make concessions on fraught areas like dairy in exchange for the U.S. softening its position elsewhere.

Indeed, the whole episode could help validate Trump's unconventional approach, which has favored tariffs, tough talk and other techniques that have roiled the trade landscape.

"This hardball tactic that he's using is having some effect," Rep. Kenny Marchant, a Coppell Republican who serves on the House Ways and Means Committee, said last week even before the U.S. and Canada reached a deal.

Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many...... — Donald J. Trump (@realDonaldTrump) October 1, 2018

Biggest issues

The flurry of activity came after the U.S and Mexico in August hashed out compromises on issues like auto manufacturing, a sunset clause and an investor dispute settlement system.

Among the biggest provisions in that preliminary agreement was an increase in the percentage of each automobile that must be made in North America to qualify for duty-free standing, along with a requirement that a significant portion of vehicles be made in high-wage factories.

The deal left room for Canada to join. But it also set a strict calendar.

Adherence to a speedy timetable is needed to allow Mexican President Enrique Peña Nieto to sign the revamp before his leftist successor, Andrés Manuel López Obrador, takes office in December. Text of the agreement had to be released before the end of September to stay on track.

Whether that marker truly mattered is up for debate.

Trade experts said procedures could likely have been fudged to accommodate all three countries, allowing Canada some breathing room. López Obrador also took off some pressure on Friday by signaling his support for the deal.

But the deadline may have had the desired effect, with Canada re-engaging talks late Friday after it appeared it had walked away.

One major factor may have been Capitol Hill. While lawmakers there have long made clear that a new NAFTA should be a three-party deal, there was no mistaking the growing feeling from some key policymakers that Canada needed to step it up.

Rep. Lloyd Doggett, D-Austin, said last week that U.S. Trade Representative Robert Lighthizer had told top lawmakers that "the Canadians haven't negotiated in good faith."

Doggett, a House Ways and Means Committee member, added that he "can't help but feel that Trump's attacks on the Canadians haven't helped any." But he said last week that Lighthizer "made a pretty good case" for more negotiations and that the trade chief had said Canada had "not been helpful."

Another influence could have been Trump's tariffs, which will stay in place against Canada, Mexico and others despite criticism from business and political leaders about increased costs.

"Without tariffs, we wouldn't be talking about a deal," Trump said. "Just for those babies out there that keep talking about tariffs. That includes Congress."

The exact nature of the three-party deal will now receive closer scrutiny, though some top-level compromises between the U.S. and Canada are already clear.

Canada will lift some restrictions on its dairy market. The issue has long created tension between the U.S. and its northern neighbor, and Trump often singled out the protection for criticism. The U.S., in turn, will no longer insist on axing an independent system to settle tariff disputes.

The agreed-upon elements between the U.S. and Mexico will now also come under the microscope.

Rep. Kevin Brady, chairman of the House Ways and Means Committee, on Monday signaled as much. The Republican from The Woodlands, while hailing "many new and winning provisions," stressed the need to "carefully analyze the trade proposal in an open and transparent process."

Signficant for Texas

Any move toward preserving the North American trade bloc is a significant development for Texas, a trade-heavy state where the jockeying over NAFTA has been eyed with wariness among lawmakers, business groups, farmers, ranchers and others.

The longstanding deal has received some criticism in Texas and beyond from labor leaders, who blame the agreement for the closure of manufacturing plants and other woes.

But NAFTA — a three-party NAFTA — has become almost an article of faith among Texas politicians in both parties. And Texas' business community, across all manner of industries, considers the deal and the resulting economic integration to be an essential cog.

"Millions of American jobs are supported by NAFTA, and in Texas, it's the cornerstone of our economy," said Sen. John Cornyn, R-Texas, calling the new deal a "positive step."

Trade has flourished between the three countries since NAFTA went into effect in 1994, said Jennifer Apperti, manager of The Mission Foods Texas-Mexico Center at Southern Methodist University. To pull that apart, she said, would disrupt supply chains and drive up prices on consumer goods, she said.

Rep. Henry Cuellar, D-Laredo, on Monday agreed that any deal had to include both Mexico and Canada.

"A deal that would have left either one of them behind would have created uncertain markets and been detrimental to our businesses," he said.

It was no surprise, then, that industry groups hailed the nascent trilateral accord.

Texas Association of Business president Jeff Moseley congratulated the countries on "their efforts to preserve a trilateral agreement that will grow jobs." Texas Farm Bureau president Russell Boening said "U.S. agriculture needed a win, and it appears this new agreement provides that opportunity."

The Alliance of Automobile Manufacturers — a group that includes Toyota, whose North American headquarters are in Plano — called the agreement an "encouraging development."

Hard to imagine Trump not doing a victory lap particularly with the midterms in sight, but if Potus decides to spike the ball in the end zone he could create further domestic political complications for #Canada and for incoming #Mexico government — Arturo Sarukhan (@Arturo_Sarukhan) October 1, 2018

But there is still a ways to go before the deal is fully realized.

Congress will need to weigh in, likely early next year, on whatever trade agreement is signed. The political winds could shift by then, with many experts projecting that Democrats will win back the House. There could be political challenges in Canada and Mexico, as well.

"Eventual US congressional debate/vote next year will not be a walk in the park," Arturo Sarukhan, a former Mexican ambassador to the U.S., wrote on Twitter late Sunday.

Trump even nodded at that dynamic, saying on Monday that he was "not at all confident" that Congress would approve the deal.

"In theory, there should be no trouble," he said. "But anything you submit to Congress is trouble. No matter what."