US–Canadian Economic Relations, Twenty Years after the USA–Canada Free Trade Agreement

Canada's economic relationship with the USA is by far its mostimportant trading relationship. Canada benefits greatly from beinglocated adjacent to the world's largest and most advanced economy.Because of the free trade agreement that Canada implemented withthe USA in 1989, the two economies have become increasinglyintegrated. However, the Canadian–US economic relationship hasrecently come under stress because of border security concernsin the USA, seemingly intractable trade disputes in some industries,and the complications involved in trying to address issues ofbilateral concern in the context of the trilateral North American freetrade agreement. Canada is attempting to diversify its externaleconomic relations by negotiating new free trade agreementsoutside North America, but will remain highly dependent on theUS economy and must address certain issues to ensure that thebilateral relationship remains robust

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