The leaders of the United States, Canada and Mexico on Friday signed the United States-Mexico-Canada Agreement (USMCA), a renegotiated version of the North American free-trade agreement.

U.S. President Donald Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto attended the signing ceremony on the sidelines of the upcoming G20 leaders' summit, which begins on Friday local time in Argentina.

The pact will "ensure (a) future of prosperity and innovation" for the three countries involved, said President Trump.

The newly signed USMCA replaces the 24-year-old North American Free Trade Agreement, known as NAFTA, which essentially lifted tariffs on most goods traded among the three countries.

Several months after the U.S. hit Mexico and Canada with tariffs on steel and aluminum products, which caused retaliatory tariffs and intense negotiations on forging a new trade deal, the new deal emerged in early October.

The tension has not faded away with General Motors' recent announcement to close plants in the U.S. and Canada.

Describing the shutting down as "a heavy blow," Trudeau addressed to Trump at the deal signing ceremony that "it's all the more reason why we need to keep working to remove the tariffs on steel and aluminum between our countries." 

Legislators from the three countries still have to approve the pact before it goes into effect.