The deal comes exactly one year after US President Donald Trump withdrew his country from the agreement.
The agreement follows two days of high-level talks in Tokyo and was confirmed by Canadian International Trade Minister Francois-Philippe Champagne. The partners are now expected to work toward signing the agreement by early March.
Trudeau told a crowd at the World Economic Forum in Davos, Switzerland, that the pact meets Canada's objectives of creating and sustaining growth, prosperity and well-paying middle-class jobs today and for generations to come.
The agreement comes amid worries that Trump will pull the US out of the North American Free Trade deal. Seventy-five percent of Canada's trade goes to the US.