I wasn't in the room during the negotiations. So I can't know if the government was aware of it. I would hope that it was a consequence they had not considered.
U.S. demands were exorbitant on government procurement and would have truly put Canada at a disadvantage. I suspect that's why we decided to scrap the government procurement chapter. You will recall that these were not easy negotiations.
Perhaps one of the negotiating team members could better answer your question. That said, I would hope that the government did not see it coming.