Canada-United States relations

On this page

• Bilateral relations
• Security and defence cooperation
• Arctic
• Trade
• Border cooperation
• Environment
• Energy security

Bilateral relations

Canada and the United States (U.S.) are bound not only by geography and history, but also by extensive trade and investment flows, cross-border supply chains and energy infrastructure, and enduring people-to-people ties. Our two countries also 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 on both sides of the border 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 with Mexico, and brings significant economic opportunity and 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, 2 stand-alone trade offices, and 13 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 our shared interests abroad. Our mutual objectives of strengthening continental defence and safeguarding global peace and security have led to a deep and enduring cooperation between our respective defence and national security agencies.

Our bilateral defence and national security relationship spans the full spectrum of cooperation, including: shared defence of the continent through the North American Aerospace Defence Command (NORAD); transatlantic collective defence through the North Atlantic Treaty Organization (NATO); Five Eyes intelligence sharing; defence materiel cooperation; and strong relationships between law enforcement and border agencies.

Canada and the U.S. have committed to accelerate NORAD modernization. In addition to announced investments in NORAD and the Canadian Armed Forces that support continental defence more broadly, 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.

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 U.S. 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 U.S. enjoy the world’s most comprehensive trading relationship, which supports millions of jobs in each country. Nearly $3.6 billion (US$2.6 billion) worth of goods and services crossed the border each day in 2024. The United States is Canada’s largest trading partner in goods and services, while Canada is the U.S.’ second-largest trading partner. Many of these goods involve co-investing and co-development, making our trade highly integrated. Canada and the U.S. also have a significant investment relationship. The U.S. is the largest investor in Canada, while, Canada is the second-largest investor in the United States. 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, and most Canadians – 2 out of 3 – live within 100 km of the border.

Almost 400,000 people cross the Canada-U.S. border every day and there are about 800,000 Canadian citizens living in the United States. There are also many Indigenous communities that span 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.

The Government of Canada is strengthening border security and enhancing the immigration system to help keep communities safe. As part of this effort, it is implementing a $1.3 billion border plan to increase staffing, deploy new technology and equipment, and improve coordination along the shared border with the United States.

Environment

The joint stewardship of the environment and biodiversity 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 also worked together to conserve more 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 security and supply. Canada and the U.S. are each other’s principal sources of imported energy (oil, natural gas, clean electricity, uranium). Our two-way energy trade reached CAD$216.8 billion in 2024. Canada’s energy exports comprise about 29% 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, fostering investment, innovation, and jobs. About 94% of Canada’s crude oil exports to the U.S. is carried in transboundary pipelines (about 4 million barrels per day in 2024). Canada’s export of clean electricity to the U.S. helps regions such as New England and New York reach emission reduction targets.