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U.S.-Canada Relations Fact sheet released by the Bureau of European and Canadian Affairs, U.S. Department of State March 3, 1998

The U.S.-Canadian relationship is unique in its complexity and scope. The two countries share an extensive web of ties in areas ranging from free trade to defense and the environment and enjoy a strong similarity of interest in the economic, foreign policy, and national security arenas. The U.S. and Canada have worked closely together in addressing such multilateral issues as Iraq, Bosnia, Haiti, and NATO enlargement, among others. Even in those few areas where the U.S. and Canada pursue different approaches, notably on Cuba, we share the same broad objective of increasing democratization and advancing human rights.

At a billion dollars (US) each day, the United States and Canada have the world's largest and most extensive trading partnership. Its cornerstone is free trade, enshrined first in the bilateral U.S.-Canada Free Trade Agreement (FTA) and since 1994 in the North American Free Trade Agreement (NAFTA) with Mexico as well. The pacts have strengthened the trading relationship by reducing trade barriers and establishing agreed-upon trade rules. In addition to NAFTA, Canada is also an important player in such organizations as the WTO, OECD, and APEC, and shows like-minded views with the U.S. on a wide spectrum of issues.

Though more than 95% of bilateral trade is problem-free, there are occasionally bilateral trade disputes over the remaining 5%, particularly in the agricultural and cultural fields. Disputes over fisheries also arise. The two countries' success in achieving the Pacific Salmon Treaty in 1985 has been tempered by difficulties in negotiating multi-year extensions of its constituent fisheries regimes. The U.S. and Canada are now working to resolve these differences and to ensure that interim arrangements are established for coming fishing seasons.

U.S. defense arrangements with Canada are more extensive than with any other country. The Permanent Joint Board on Defense provides policy-level consultation on bilateral defense matters. The United States and Canada share mutual security commitments through the North Atlantic Treaty Organization (NATO). In addition, U.S. and Canadian military forces have cooperated since 1958 on continental air defense through the North American Aerospace Defense Command (NORAD).

Environmental issues loom large in the bilateral relationship, given the shared North American continent. The United States and Canada work closely to resolve them through such instruments as the International Joint Commission (IJC), established as part of the Boundary Waters Treaty of 1909 to resolve differences and promote bilateral cooperation on boundary waters. The Great Lakes Water Quality Agreement of 1972 is another historic example of joint cooperation in controlling transboundary water pollution. The two governments also consult semi-annually on transboundary air pollution. Under the Air Quality Agreement of 1991, both countries have made substantial progress in coordinating and implementing their acid rain control programs. [End of Document]

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