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Canada-U.S. Relations (CRS Report for Congress)

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Release Date Revised Feb. 10, 2021
Report Number 96-397
Authors Ian F. Fergusson, Coordinator; Peter J. Meyer, Coordinator
Source Agency Congressional Research Service
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Summary:

Relations between the United States and Canada have generally been cordial. Bound together by a common 5,500 mile border—“the longest undefended border in the world”—as well as shared democratic traditions, the two countries are also increasingly integrated economically through the North American Free Trade Agreement (NAFTA). The two North American countries continue to cooperate widely on international security and political issues, both bilaterally and through numerous international organizations. Canada’s foreign and defense policies are usually in harmony with those of the United States. Areas of contention have been relatively few, but sometimes sharp, as was the case with policy toward Iraq. Since September 11, 2001, the United States and Canada have cooperated extensively on efforts to strengthen border security and to combat terrorism, particularly in Afghanistan. Both countries were also active participants in the U.N.-sanctioned North Atlantic Treaty Organization (NATO) mission in Libya and currently are members of the coalition to combat the Islamic State. The United States and Canada maintain the world’s largest bilateral trading relationship, one that has been strengthened over the past three decades by the approval of two major free trade agreements. Although commercial disputes may not be quite as prominent now as they have been in the past, the two countries in recent years have engaged in difficult negotiations over items in several trade sectors, including natural resources, agricultural commodities, and intellectual property rights. These disputes, however, affect a small percentage of the total goods and services exchanged. In recent years, energy has increasingly emerged as a key component of the trade relationship, with the construction of the Keystone XL pipeline emerging as a major source of contention. In addition, the United States and Canada work together closely on environmental matters, including monitoring air quality and solid waste transfers, and protecting and maintaining the quality of border waterways. Many Members of Congress follow U.S.-Canada environmental, trade, and trans-border issues that affect their states and districts. Since Canada and the United States are similar in many ways, lawmakers in both countries also study solutions proposed across the border on such issues as federal fiscal policy and federal-provincial power sharing. This report, divided into two major parts, begins with an overview of Canada’s political situation, foreign and security policy, and economic and trade policy, focusing particularly on issues that may be relevant to U.S. policymakers. The second part of the report consists of essays on a wide array of current bilateral issues. These include foreign and security policy issues, such as Canada’s arctic sovereignty claim, Canada’s resettlement of Syrian refugees, border security, and cybersecurity cooperation. The report also examines trade issues such as the Trans-Pacific Partnership, North American cooperation on competitiveness, intellectual property rights, and softwood lumber. Several bilateral issues involving energy, the environment, and natural resource use are also addressed, including the Canadian oil sands, climate change, a proposed radioactive waste repository near Lake Huron, the Columbia River Treaty, and ballast water management. Each of the essays concludes with questions designed as potential inquiries to Canadian officials to promote thought and discussion among policymakers.