Morneau, speaking to a NY event arranged by Politico, also said it was clear that a negotiating process was starting in the United States which he hoped would lead to Congressional ratification of a new pact created to replace the North American Free Trade Agreement.
On the plane ride back from the G20 summit, President Donald Trump said he would withdraw from NAFTA, the North American Free Trade Agreement, which still governs business among Mexico, the us and Canada despite the countries signing the USMCA deal at the summit, the New York Times reports. "Congress will have a choice of the USMCA or pre-NAFTA, which worked very well".
"I will be formally terminating NAFTA shortly", Trump told reporters aboard Air Force One late Saturday as he returned to Washington from the G20 summit in Argentina.
The leaders of Canada, Mexico and the US signed a revised North American free trade pact Friday on the margins of the G20 summit in Argentina that is set to govern more than $1.2 trillion in regional commerce.
A number of Democrats in Congress, empowered by their new majority in the House of Representatives, say they don't much like the new agreement in its current form either, and say they won't support it without more stringent enforcement mechanisms for new labour rules and environmental protection.
He had made renegotiating NAFTA a key campaign promise.
Trump said Friday that he did not foresee a problem with getting congressional approval, but some Democrats - who will control the US House of Representatives as of January - have expressed skepticism.
Not even all Republicans in Congress are on board just yet.
Now that the leaders of the United States, Canada and Mexico have signed the agreement, it needs ratification from legislators in all three countries before taking effect.
Thus, even though its been signed, it still faces major hurdles, particularly in the US where Congressional Democrats are cool to the proposed agreement.
Business Roundtable, an influential association of leading US companies' executives, also called for a "prompt resolution" of the tariff issue between all three countries while reviewing the final text of the new trade agreement.