Canada-United States relations

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. supports millions of jobs and helps 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.

Roadmap, Joint statements, and other Leader-level commitments

Since the Roadmap for a Renewed U.S.-Canada Partnership was launched in 2021, Canada and the United States have been working to accelerate the clean energy transition, strengthen North American critical minerals and semiconductor supply chains, protect shared waters and the Arctic, advance diversity and inclusion, and bolster global alliances against threats to the international order. These hundred-plus Leader-level commitments are strengthening Canada-U.S. collaboration across a range of mutual interests and shared domestic, bilateral and multilateral priorities.

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 of 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 and by enhancing the capabilities of the Ukrainian security forces; and through the Global Coalition against Daesh in the Middle East. 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 and the U.S. share significant national interests in the Arctic. These are reflected in the 2021 Roadmap for a Renewed U.S.-Canada Partnership and the 2023 joint statement following President Biden’s visit to Canada. The two countries committed, inter alia, to an expanded Canada-U.S. Arctic Dialogue, to protect shared waters and the Arctic, and to strengthen collaboration in the Arctic to reduce localized emissions and prevent and mitigate environmental disasters and build upon long-standing cooperation in science and technology, environmental protection, infrastructure development, search and rescue, and within the Arctic Council. In July 2024, the leaders of Canada, the United States and Finland, recognizing the enduring importance of the Arctic to our collective economic, climate, and national security and our resolve to deepen cooperation to ensure the polar and Arctic regions remain peaceful, cooperative, and prosperous, announced the Icebreaker Collaboration Effort (ICE Pact). This trilateral partnership is a commitment to collaborate on building best-in-class Arctic and polar icebreakers and other Arctic and polar capabilities in our respective countries and recognizes our joint priority of upholding safety and security in the Arctic, including continued protection of long-standing international rules and norms.

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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 2022. 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 the Canada-United States-Mexico Agreement (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 United States share a land border that is close to 9,000 km and 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 United States 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 crossed the Canada-United States border every day and that there are about 800,000 Canadian citizens living in the United States. There are many Canadian Indigenous people and U.S. Native American Tribes whose communities and cultures span the border.

Environment, water, and climate change

Canada and the United States are close partners on climate and environmental action. By ensuring regulatory alignment across integrated sectors, Canada and the U.S. have strengthened economic ties and made 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 grid.

Canada and the U.S. continue to pursue policy and regulatory alignment through mechanisms such as the High-Level Ministerial Dialogue on Climate Ambition and continue to work together to push ambitious climate action in multilateral fora. During President Biden’s visit in 2023, Canada and the U.S. renewed our joint commitment to preserving and restoring the Great Lakes, with Canada announcing investments of $420 million over 10 years; strengthen collaboration in the Arctic to reduce localized emissions and prevent and mitigate environmental disasters; conserve biodiversity and protect fragile ecosystems; and undertake a joint technical review and assessment of the 1991 Canada-U.S. Air Quality Agreement. Through the Renewed Canada-United States commitment on climate and nature ambition, announced in December 2023 at COP28, both countries committed to renew and accelerate their joint efforts to combat the climate crisis and to increase economic benefits from collaboration. This includes implementing clean electricity commitments, reducing methane emissions, protecting nature and oceans, and biodiversity conservation. Canada and the U.S. also reached an Agreement-in-Principle to modernize the 1964 Columbia River Treaty. The AIP will enable us to update the Treaty, ensuring continued flood risk management and co-operation on hydropower for the Columbia River and incorporating important provisions not considered in the original agreement, such as ecosystem health and Indigenous cultural values. The modernized Treaty will reduce flood risk in communities, advance Indigenous priorities, and promote clean energy goals.

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 $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 export to the U.S. of crude oil 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.

The Joint Statement from the President’s March 2023 visit identified as a priority the resilience of critical infrastructure, in particular cross-border pipelines and electricity transmission lines. The leaders also announced the Canada-U.S. Energy Transformation Task Force (ETTF), as a one-year joint initiative to support our collective energy security and economic growth as we transition to a clean energy future. Budget 2024 announced the renewal of the ETTF for an additional year. Under the ETTF, Canada and the U.S. are pursuing efforts to bolster supply security for critical minerals. Nuclear energy is also an area of focus because of its key role in achieving net-zero greenhouse gas emissions.

Canadian and U.S. also share goals for decarbonizing North American electricity production. Canada aims to achieve a net zero electricity system by 2035, with the U.S. striving to produce 100% non-emitting power by 2035. From a national security standpoint, the U.S. and Canada collaborate to protect the grid from cyber and other threats, enhance response and recovery efforts, and work toward creating a more secure and resilient future electric grid.

Promoting fair and just societies

Canada and the U.S. share a commitment to recognizing and addressing systemic racism, unconscious bias, gender-based discrimination, barriers for persons with disabilities, and all other forms of discrimination and exclusion. Through the federal Anti-Racism Secretariat, Canada has been working with the White House to advance information-sharing, best practice exchanges, and advice as the Biden administration works to deliver on presidential executive orders related to racial justice, diversity and inclusion, equity and accessibility, particularly within the federal public service. Canadian officials delivered two training sessions on Gender Based Analysis+ to U.S. public servants, including senior officials and White House Gender Policy Council staff, in support of the first-ever ‘U.S. National Strategy on Gender Equity and Equality.’ Canada and the U.S. also collaborate and have made meaningful joint progress towards Indigenous reconciliation. Canada, the U.S., and Mexico work together on the Trilateral Working Group (TWG) on Violence Against Indigenous Women and Girls to exchange knowledge, enhance cooperation, and align responses to Indigenous issues in all three countries. During President Biden’s visit to Canada, the leaders reinforced their commitment to promote equality and combat all forms of discrimination through child benefits, early learning and childcare, pay equity, and women’s entrepreneurship.

Partnerships and organizations

Global challenges require global solutions, and Canada-U.S. cooperation has never been more important to ensure that multilateral institutions address today’s realities.

Together, we are advocating for reform and modernization in important international institutions such as the United Nations, North Atlantic Treaty Organization, and the World Trade Organization.

Canada and the United States work closely in multilateral fora, such as:

Date modified:: 2024-09-09

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