Canada's finance minister on Wednesday welcomed the U.S. "fiscal cliff" agreement, but warned that significant risks remain and urged more action to put the U.S. fiscal situation on a sustainable path.

"Canada welcomes the agreement reached between the president and the Congress that protects the U.S. economy in the short term," Finance Minister Jim Flaherty said in a statement.

"That said, there remain a number of significant risks to the U.S. economic outlook. It is my hope that leaders in the United States continue to work together to develop future action that will put the U.S. fiscal position on a sustainable path," he said.

(Reporting by Louise Egan; Editing by Leslie Adler)