Canada-United States relations

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Canada’s engagement with the United States

Bilateral relations

Canada and the United States (U.S.) enjoy a unique relationship. The Canada-U.S. partnership is forged by shared geography, similar values, common interests, strong personal connections and powerful, multi-layered economic ties. Our two countries share a deep and longstanding defence and national security partnership, providing both countries with greater security than could be achieved individually. Trade and investment between Canada and the U.S. support millions of jobs and help ensure the secure and flow of goods and people across the border that is vital to both countries’ economic competitiveness and prosperity. The Canada-United States-Mexico Agreement (CUSMA)^{Footnote 1}, serves to reinforce Canada’s strong economic ties with the U.S., as well as Mexico, and brings significant economic benefit to all three countries.

Canada has an embassy in Washington, D.C., consulates general in Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Miami, Minneapolis, New York, San Francisco, and Seattle, 3 trade offices, and 14 Honorary Consuls. The United States maintains an embassy in Ottawa and consulates general across Canada.

Security and defence cooperation

Canada and the United States are key allies and defence partners, and we collaborate closely to address international crises and to defend shared values abroad. Our mutual objectives of strengthening continental defence and safeguarding global peace and security have led to the close cooperation between our respective defence and national security agencies.

Our bilateral defence and national security relationship spans the full spectrum of cooperation, from shared defence of the continent; commitments to collective objectives through the North American Aerospace Defence Command (NORAD), the North Atlantic Treaty Organization (NATO), and the Five Eyes; intelligence sharing; defence materiel cooperation, and strong relationships between law enforcement agencies. Canada and the U.S. recently committed to accelerate NORAD modernization. In addition to announced investments in NORAD and the Canadian Armed Forces that support continental defence more broadly (including F-35 fighter jets and related infrastructure), Canada is collaborating with the U.S. to reduce violent extremism, child sex exploitation, cross-border smuggling, and firearms violence on both sides of the border; as well as deepen cybersecurity cooperation to improve the resiliency and protection of our critical infrastructure.

Canada and the U.S. cooperate closely on global security issues, including in Europe through NATO. Canada and the U.S. also maintain a maritime presence and uphold sanctions in the Indo-Pacific region; as well as conduct illicit trafficking operations in the Caribbean Sea and eastern Pacific Ocean.

Arctic

Canada’s Arctic Foreign Policy recognizes the U.S. as Canada’s closest partner and ally sharing significant national interests in the Arctic. In July 2024, Canada, the United States and Finland announced the Icebreaker Collaboration Effort (ICE Pact) to collaborate on building best-in-class Arctic and polar icebreakers and other Arctic and polar capabilities. This initiative recognizes our joint priority of upholding safety and security in the Arctic, including continued protection of long-standing international rules and norms.

Trade

Canada and the United States enjoy the world’s most comprehensive trading relationship, which supports millions of jobs in each country. We are each other’s largest trade partners with nearly $3.6 billion (US$2.7 billion) worth of goods and services crossing the border each day in 2023. Many of these goods involve co-investing and co-development, making our networks highly integrated. Canada and the U.S. also have a significant investment relationship. The U.S. is the single greatest investor in Canada and Canada was the largest source of foreign direct investment (FDI) in the United States at the end of 2023. In addition, Canada is the single largest foreign supplier of energy to the United States.

For the better part of four decades, trade between Canada and the U.S. has been governed by a succession of free trade agreements, the most recent of which is CUSMA, which entered into force in July 2020. CUSMA anchors our strong, balanced trading relationship with the United States and Mexico, built on resilient and effective supply chains across all key sectors of the economy.

Border cooperation

Canada and the U.S. share a land border that, at close to 9,000 km, is the longest international border in the world. There are 13 U.S. states, seven Canadian provinces and one territory along the border. Most Canadians – 2 out of 3 – live within 100 km of the border.

Our two countries work hand in hand to ensure our shared border is safe and protected. Officials in both Canada and the U.S. cooperate closely to manage the secure and efficient flow of goods and people across the border, which is vital to both countries’ economic competitiveness and prosperity.

It is estimated that around 400,000 people cross the Canada-U.S. border every day and that there are about 800,000 Canadian citizens living in the United States. There are many Canadian Indigenous people whose communities and cultures span across the border.

The Government of Canada is taking concrete action to strengthen border security and the immigration system to keep communities safe. To support this work, in December 2024, the Government of Canada announced an investment of $1.3 billion to support more personnel, new technology and equipment, and enhanced coordination.

The investment plan has 5 pillars for specific action, in addition to existing efforts:

Detecting and disrupting the fentanyl trade
Introducing significant new tools for law enforcement
Improving operational coordination
Expanding information sharing
Minimizing unnecessary border volumes

Environment, water, and climate change

The joint stewardship of the environment is a cornerstone of Canada-U.S. relations, from air and water quality to wildlife management. Through regulatory alignment across integrated sectors, both countries have combined efforts to safeguard the environment and to increase economic benefits from their collaboration. Canada and the U.S. have strengthened economic ties while making significant advancements to reduce methane emissions, establish a critical minerals supply chain, advance the transition to zero-emission vehicles, and move toward a net-zero grids. Canada and the U.S. have also worked together to conserve more of nature and shared species emblematic of our countries.

Canada and the U.S. will continue to work together to safeguard clean air and water across our shared borders and to prioritize the health and security of both Canadians and Americans, and their environment, while fostering resilient, sustainable economies.

Energy security

The volume and value of the Canada-U.S. energy relationship is fundamental to North America’s energy transition, and energy security and supply. Canada and the U.S. are each other’s principal source of imported energy (oil, natural gas, clean electricity, uranium). Our two-way energy trade reached CAD$198.2 billion in 2023. Canada registers a year-on-year surplus in trade in energy (in 2023 CAD$134 billion). Canada’s energy exports comprise about 27% of all merchandise exports to the United States. Transboundary infrastructure plays a critical role, with over 100 oil and natural gas pipelines, and clean electricity transmission lines, moving massive amounts of energy back and forth, supporting investment, industry, jobs and consumers. About 94% of Canada’s crude oil exports to the U.S. is carried in transboundary pipelines (about 4 million barrels per day in 2023). Canada’s export of clean electricity to the U.S. helps regions such as New England and New York reach emission reduction targets.

Date modified:: 2025-03-14

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