U.S. Department of State, July 2000
Bureau of Western Hemisphere Affairs

Background Notes: Canada

Official Name:
Canada

PROFILE

Geography

Area: 9.9 million sq. km. (3.8 million sq. mi.); second-largest
country in the world.
Cities: Capital--Ottawa (pop. 1 million).
Other cities--Toronto (4.2 million), Montreal (3.3 million),
Vancouver (1.8 million).
Terrain: Mostly plains with mountains in
the west and lowlands in the southeast. Climate: Temperate to
arctic.

People

Nationality: Noun and adjective--Canadian(s). Population: 31.0
million.
Ethnic groups: British 28%, French 23%, other European
15%, Asian/Arab/African 6%, indigenous Indian and Eskimo 2%,
mixed background 26%.
Religions: Roman Catholic 42%, Protestant 40%.
Languages: English, French.
Education: Literacy--99% of population aged 15 and over have at
least a ninth-grade education.
Health: Infant mortality rate--5.5/1,000. Life expectancy--76
yrs. male, 83 yrs. female.
Work force (15 million): Trade--17%; manufacturing--15%;
transportation and communications--8%; finance--6%; public
administration--6%; construction--5%; agriculture--4%; forestry
and mining--2%; other services--37%.

Government

Type: Confederation with parliamentary democracy.
Independence: July 1, 1867.
Constitution: The amended British North America Act of 1867
patriated to Canada on April 17, 1982, Charter of Rights and
Freedoms, and unwritten custom.
Branches: Executive--Queen Elizabeth II (head of state
represented by a governor general), prime minister (head of
government), cabinet.
Legislative--bicameral Parliament (301-member House of Commons,
105-seat Senate). Judicial--Supreme Court.
Political parties: Liberal Party, Canadian Alliance, Bloc
Quebecois, New Democratic Party, Progressive Conservative Party.
Subdivisions: 10 provinces, 3 territories.

Economy

Nominal GDP (1999): $644.7 billion.
Real GDP growth rate (1999): 4.5%.
Nominal per capita GDP (1999): $19,111.
Natural resources: Petroleum and natural gas, hydroelectric
power, metals and minerals, fish, forests, wildlife.
Agriculture: Products--wheat, livestock and meat, feed grains,
oil seeds, dairy products, tobacco, fruits, vegetables.
Industry: Types--motor vehicles and parts, machinery and
equipment, aircraft and components, other diversified
manufacturing, fish and forest products, processed and
unprocessed minerals.
Trade: Merchandise exports (1999)--$242.7 billion: motor vehicles
and spare parts, lumber, wood pulp and newsprint, crude and
fabricated metals, natural gas, crude petroleum, wheat. 86% of
1999 Canadian exports went to the United States. Merchandise
imports (1999)--$219.9 billion: motor vehicles and parts,
industrial machinery, crude petroleum, chemicals, agricultural
machinery. Seventy-six percent of 1998 Canadian imports came from
the United States.

U.S.-CANADA RELATIONS

The bilateral relationship between the United States and Canada
is perhaps the closest and most extensive in the world. It is
reflected in the staggering volume of trade--over $1 billion a
day--and people--more than 200 million a year--crossing the
U.S.-Canadian border. In fields ranging from environmental
cooperation to free trade, the two countries have set the
standard by which many other countries measure their own
progress. In addition to their close bilateral ties, Canada and
the U.S. also work closely through multilateral fora. Canada--a
charter signatory to the United Nations and the North Atlantic
Treaty Organization (NATO)--has continued to take an active role
in the United Nations, including peacekeeping operations. It is
currently a member of the UN Security Council (1999-2000). Canada
is also an active participant in discussions stemming from the
Organization for Security and Cooperation in Europe (OSCE).
Canada joined the Organization of American States (OAS) in 1990
and has been an active member, hosting the OAS General Assembly
in Windsor in June 2000. In 2001, Canada will host the third
Summit of the Americas in Quebec City. Canada also seeks to
expand its ties to Pacific Rim economies through membership in
the Asia-Pacific Economic Cooperation forum (APEC) of which the
U.S. also is a member.

Although Canada views its relationship with the U.S. as crucial
to a wide range of interests, it also occasionally pursues
policies at odds with the United States. This is particularly
true of Cuba, with regard to which the U.S. and Canada have
pursued divergent policies for nearly 40 years, even while
sharing the common goal of a peaceful democratic transition.

U.S. defense arrangements with Canada are more extensive than
with any other country. The Permanent Joint Board on Defense,
established in 1940, provides policy-level consultation on
bilateral defense matters. The United States and Canada share
NATO mutual security commitments. In addition, U.S. and Canadian
military forces have cooperated since 1958 on continental air
defense within the framework of the North American Aerospace
Defense Command (NORAD).

The two countries also work closely to resolve transboundary
environmental issues, an area of increasing importance in the
bilateral relationship. A principal instrument of this
cooperation is the International Joint Commission (IJC),
established as part of the Boundary Waters Treaty of 1909 to
resolve differences and promote international cooperation on
boundary waters. The Great Lakes Water Quality Agreement of 1972
is another historic example of joint cooperation in controlling
transboundary water pollution. The two governments also consult
semiannually on transboundary air pollution. Under the Air
Quality Agreement of 1991, both countries have made substantial
progress in coordinating and implementing their acid rain control
programs.

Trade and Investment

Canada is by far our largest trading partner, with more than $1
billion in trade a day. By comparison, in 1999 this was more than
U.S. trade with all the countries of Latin America combined. U.S.
exports to Canada exceed those to all members of the European
Union combined. Just the two-way trade that crosses the
Ambassador Bridge between Michigan and Ontario equals all U.S.
exports to Japan. Canada's importance to the United States is not
just a border-state phenomenon: Canada is the leading export
market for 35 of our 50 States.

Bilateral trade increased by about 50% between 1989, when the
U.S.-Canada Free Trade Agreement (FTA) went into effect, and
1994, when the North American Free Trade Agreement (NAFTA)
superseded it. Trade has since increased by 40%. NAFTA continues
the FTA's moves toward reducing trade barriers and establishing
agreed-upon trade rules. It also resolves some longstanding
bilateral irritants and liberalizes rules in several areas,
including agriculture, services, energy, financial services,
investment, and government procurement. NAFTA forms the largest
trading area in the world, embracing the 380 million people of
the three North American countries.

The largest component of U.S.-Canadian trade is in the automotive
sector. Under the 1965 U.S.-Canada Automotive Agreement (Auto
Pact) which provided for free trade in cars, trucks, and auto
parts, two-way trade in automotive products rose from $715
million in 1964 to $104.1 billion in 1999. Auto Pact benefits are
incorporated into NAFTA.

The U.S. is Canada's leading agricultural market, taking nearly
one-third of all food exports. Conversely, Canada is the
second-largest U.S. agricultural market (after Japan), primarily
importing fresh fruits and vegetables and livestock products.
Nearly two-thirds of Canada's forest products, including pulp and
paper, are exported to the United States; almost 75% of Canada's
total newsprint production also is exported to the U.S.

At $21 billion in 1999, U.S.-Canada trade in energy is the
largest U.S. energy trading relationship in the world. The
primary components of U.S. energy trade with Canada are oil,
natural gas, and electricity. Canada is the United States'
largest non-OPEC oil supplier and the fifth-largest energy
producing country in the world. Canada provides about 14% of U.S.
oil imports and 13% of total U.S. consumption of natural gas.
U.S. national electricity grids are linked and both countries
share hydropower facilities on the western borders.

While 95% of U.S.-Canada trade flows smoothly, there are
occasionally bilateral trade disputes over the remaining 5%,
particularly in the agricultural and cultural fields. Usually,
however, these issues are resolved through bilateral consultative
forums or referral to WTO or NAFTA dispute resolution. In May
1999, the U.S. and Canadian Governments negotiated an agreement
on magazines that will provide increased access for the U.S.
publishing industry to the Canadian market. The United States and
Canada also have resolved several major issues involving
fisheries. By common agreement, the two countries submitted a
Gulf of Maine boundary dispute to the International Court of
Justice in 1981; both accepted the Court's October 12, 1984
ruling which demarcated the territorial sea boundary.

In 1990, the United States and Canada signed a bilateral
Fisheries Enforcement Agreement, which has served to deter
illegal fishing activity and reduce the risk of injury during
fisheries enforcement incidents. The U.S. and Canada signed a
Pacific Salmon Agreement in June 1999 that settled differences
over implementation of the 1985 Pacific Salmon Treaty for the
next decade. Canada and the United States signed an aviation
agreement during President Clinton's visit to Canada in February
1995, and air traffic between the two countries has increased
dramatically as a result. The two countries also share in
operation of the St. Lawrence Seaway, connecting the Great Lakes
to the Atlantic Ocean.

The U.S. is Canada's largest foreign investor; at the end of
1999, the stock of U.S. direct investment was estimated at $116.7
billion or about 72% of total foreign direct investment in
Canada. U.S. investment is primarily in Canada's mining and
smelting industries, petroleum, chemicals, the manufacture of
machinery and transportation equipment, and finance.

Canada is the third-largest foreign investor in the United
States. At the end of 1999, the stock of Canadian direct
investment in the United States was estimated at $90.4 billion.
Canadian investment in the United States, which includes
investment from Canadian holding companies in the Netherlands, is
concentrated in manufacturing, wholesale trade, real estate,
petroleum, finance, and insurance and other services.

Principal U.S. Embassy Officials

Ambassador--Gordon D. Giffin
Deputy Chief of Mission--Stephen Kelly
Minister-Counselor for Political Affairs--Patrick L. Del Vecchio
Minister-Counselor for Economic Affairs--Robert Smolik
Minister-Counselor for Public Affairs--Meg Gilroy
Minister-Counselor for Commercial Affairs--Delores Harrod
The U.S. embassy in Canada is located at 490 Sussex Drive,
Ottawa, Ontario, K1N 1G8 (tel. 613-238-5335).

GOVERNMENT

Canada is a constitutional monarchy with a federal system, a
parliamentary government, and strong democratic traditions. Many
of the country's legal practices are based on unwritten custom,
but the federal structure resembles the U.S. system. The 1982
Charter of Rights guarantees basic rights in many areas. Queen
Elizabeth II, as Queen of Canada, serves as a symbol of the
nation's unity. She appoints a governor general on the advice of
the prime minister of Canada, usually for a 5-year term. The
prime minister is the leader of the political party in power and
is the head of the cabinet. The cabinet remains in office as long
as it retains majority support in the House of Commons on major
issues.

Canada's parliament consists of an elected House of Commons and
an appointed Senate. Legislative power rests with the 301-member
Commons, which is elected for a period not to exceed 5 years. The
prime minister may ask the governor general to dissolve
parliament and call new elections at any time during that period.
Federal elections were last held in June 1997. Vacancies in the
104-member Senate, whose members serve until the age of 75, are
filled by the governor general on the advice of the prime
minister. Recent constitutional initiatives have sought
unsuccessfully to strengthen the Senate by making it elective and
assigning it a greater regional representational role. Criminal
law, based largely on British law, is uniform throughout the
nation and is under federal jurisdiction. Civil law also is based
on the common law of England, except in Quebec, which has
retained its own civil code patterned after that of France.
Justice is administered by federal, provincial, and municipal
courts.

Each province is governed by a premier and a single, elected
legislative chamber. A lieutenant-governor appointed by the
governor general represents the Crown in each province.

Principal Government Officials

Head of State--Queen Elizabeth II
Governor General--Adrienne Clarkson
Prime Minister--Jean Chretien
Minister of Foreign Affairs--Lloyd Axworthy
Ambassador to the United States--Raymond Chretien (after
September 2000: Michael Kergin)
Ambassador to the United Nations--Robert Fowler (after September
2000: Paul Heinbecker)

Canada maintains an embassy in the United States at 501
Pennsylvania Avenue NW, Washington, DC 20001 (tel. 202-682-1740).

POLITICAL CONDITIONS

Prime Minister Jean Chretien's liberal government was elected to
a second term on June 2, 1997, winning 155 of Parliament's 301
seats. These results reflected slippage from the Liberals' 1993
total, when the party took 178 of 295 seats. In the 1997 vote,
the sovereigntist Bloc Quebecois (with 44 seats), which
constituted Canada's official opposition from 1993-97, was
displaced by the western-based Reform Party, which won 60 seats.
Canada's two historic opposition parties--the Progressive
Conservative Party and the New Democratic Party--regained
official party status in the 1997 election with 20 and 21 seats,
respectively, after their near total eclipse in the 1993 poll. In
March 2000, the Reform Party merged with former members of the
Progressive Conservative Party to form the Canadian Alliance.

Federal-provincial interplay is a central feature of Canadian
politics: Quebec wishes to preserve and strengthen its
distinctive nature; western provinces desire more control over
their abundant natural resources, especially energy reserves;
industrialized central Canada is concerned with economic
development; and the Atlantic provinces have resisted federal
claims to fishing and mineral rights off their shores.

The Chretien government has responded to these different regional
needs by seeking to rebalance the Canadian confederation, giving
up its spending power in areas of provincial jurisdiction, while
attempting to strengthen the federal role in other areas. The
federal government has reached agreement with a number of
provinces returning to them authority over job training programs
and is embarked on similar initiatives in other fields.
Meanwhile, it has attempted to strengthen the national role on
interprovincial trade, while also seeking national regulation of
securities.

National Unity

Key to the national unity debate is the ongoing issue of Quebec
separatism. Following the failure of two constitutional
initiatives in the last decade, Canada is still seeking a
constitutional settlement that will satisfy the aspirations of
the French-speaking province of Quebec. The issue has been a
fixture in Canadian history, dating back to the 18th century
rivalry between France and Britain. For more than a century,
Canada was a French colony. Although New France came under
British control in 1759, it was permitted to retain its religious
and civil code.

The early 1960s brought a Quiet Revolution to Quebec, leading to
a new assertiveness and heightened sense of identity among the
French-speaking Quebecois, who make up about one-quarter of
Canada's population. In 1976, the separatist Parti Quebecois won
the provincial election and began to explore a course for Quebec
of greater independence from the rest of Canada.

In a 1980 referendum, the Parti Quebecois sought a mandate from
the people of Quebec to negotiate a new status of
sovereignty-association, combining political independence with a
continued economic association with the rest of Canada. Sixty
percent of Quebec voters rejected the proposal. Subsequently, an
agreement between the federal government and all provincial
governments except Quebec, led to Canada in 1982 assuming from
the United Kingdom full responsibility for its own constitution.
Quebec objected to certain aspects of the new arrangement,
including a constitutional amending formula that did not require
consensus among all provinces. The 1987 Meech Lake Accord sought
to address Quebec's concerns and bring it back into Canada's
constitutional fold. Quebec's provincial government, then
controlled by federalists, strongly endorsed the accord, but lack
of support in Newfoundland and Manitoba prevented it from taking
effect. Rejected in its bid for special constitutional
recognition, Quebec's provincial government authorized a second
sovereignty referendum.

Intense negotiations among Quebec, the federal government, and
other provinces led to a second proposed constitutional accord in
1992--the Charlottetown Accord. Despite near-unanimous support
from the country's political leaders, this second effort at
constitutional reform was defeated in Quebec and the rest of
Canada in an October 1992 nationwide referendum.

Tired of the country's constitutional deadlock, many Canadians
prefer to focus on economic issues. Nonetheless, the election of
the sovereigntist Bloc Quebecois as Canada's official opposition
in 1993 and the subsequent election of the separatist Parti
Quebecois as Quebec's provincial government in September 1994
kept national unity in the forefront of political debate and
resulted in a second referendum on the issue.

This referendum, held in Quebec on October 30, 1995, resulted in
a narrow 50.56% to 49.44% victory for federalists over
sovereigntists. Quebec's status thus remains a serious political
issue in Canada. During the 1998 provincial election campaign,
Quebec Premier Bouchard pledged to hold another referendum during
the current term if there are "winning conditions."

In December 1999, the Chretien administration introduced the
so-called "Clarity Bill," setting out the federal role in any
future referendum on Quebec's status. Both houses of Parliament
subsequently approved the legislation.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program
provides Consular Information Sheets, Travel Warnings, and Public
Announcements. Consular Information Sheets exist for all
countries and include information on entry requirements, currency
regulations, health conditions, areas of instability, crime and
security, political disturbances, and the addresses of the U.S.
posts in the country. Travel Warnings are issued when the State
Department recommends that Americans avoid travel to a certain
country. Public Announcements are issued as a means to
disseminate information quickly about terrorist threats and other
relatively short-term conditions overseas which pose significant
risks to the security of American travelers. Free copies of this
information are available by calling the Bureau of Consular
Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings
also are available on the Consular Affairs Internet home page:
http://travel.state.gov. Consular Affairs Tips for Travelers
publication series, which contain information on obtaining
passports and planning a safe trip abroad are on the internet and
hard copies can be purchased from the Superintendent of
Documents, U.S. Government Printing Office, telephone:
202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may
be obtained from the Office of Overseas Citizens Services at
(202) 647-5225. For after-hours emergencies, Sundays and
holidays, call 202-647-4000.

Passport information can be obtained by calling the National
Passport Information Center's automated system ($.35 per minute)
or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per
minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778).
Major credit card users (for a flat rate of $4.95) may call
1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the
internet. Travelers can check the latest health information with
the U.S. Centers for Disease Control and Prevention in Atlanta,
Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site
at http://www.cdc.gov/travel/index.htm give the most recent
health advisories, immunization recommendations or requirements,
and advice on food and drinking water safety for regions and
countries. A booklet entitled Health Information for
International Travel (HHS publication number CDC-95-8280) is
available from the U.S. Government Printing Office, Washington,
DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and
customs regulations, legal holidays, and other items of interest
to travelers also may be obtained before your departure from a
country's embassy and/or consulates in the U.S. (for this
country, see "Principal Government Officials" listing in this
publication).

U.S. citizens who are long-term visitors or traveling in
dangerous areas are encouraged to register at the U.S. embassy
upon arrival in a country (see "Principal U.S. Embassy Officials"
listing in this publication). This may help family members
contact you in case of an emergency.

Further Electronic Information

Department of State Foreign Affairs Network. Available on the
Internet, DOSFAN provides timely, global access to official U.S.
foreign policy information. Updated daily, DOSFAN includes
Background Notes; daily press briefings; Country Commercial
Guides; directories of key officers of Foreign Service posts;
etc. DOSFAN's World Wide Web site is at http://www.state.gov.

National Trade Data Bank (NTDB). Operated by the U.S. Department
of Commerce, the NTDB contains a wealth of trade-related
information. It is available on the Internet (www.stat-usa.gov)
and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more
information.

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