Embassy of the United States Ottawa, Canada

The Economic Section promotes United States policies and enhances the United States' relationship with Canada in economic, environmental and scientific affairs.

The U.S. Commercial Service deals with commercial matters involving individual firms and the Foreign Agricultural Service is the primary point of contact on agricultural matters. The Consular Section deals with an individuals' ability to enter or work in the United States.

Trade and Economy

Canada and the United States share an economic relationship that is the envy of the world. Each is the foremost economic partner and largest export market for the other. We share a $1 trillion annual trade and investment relationship. The Economic Section monitors this important relationship, manages trade disputes, and works toward the constructive resolution of economic and trade policy differences. We also actively support a host of "shared border" initiatives to facilitate trade and improve law enforcement cooperation along our very open, very busy 5,500-mile land border.

Energy, Environment, Science & Technology, and Health

Canada is the single largest foreign supplier of oil, gas, electricity and uranium to the United States and we share an inter-connected energy infrastructure that encompasses oil and gas pipelines and electricity transmission lines. The Embassy's EESTH Section helps manage this unparalleled energy relationship. We also establish and oversee bilateral cooperation on shared global environmental objectives, such as addressing climate change. We promote U.S.-Canadian cooperation on regional environmental issues through the NAFTA Commission on Environmental Cooperation (CEC) and the Arctic Council. Our objective is continental environmental cooperation.

EESTH seeks to resolve disputes on the full range of transboundary environmental and fisheries issues through a variety of bilateral mechanisms, including the U.S.-Canada Air Quality Agreement, the Pacific Salmon Commission (PSC), the Great Lakes Water Quality Agreement, and the International Joint Commission (IJC). We work with Canada to promote sound conservation and fisheries management practices also through various multilateral fora including the Northwest Atlantic Fisheries Organization (NAFO) and the International Pacific Halibut Commission (IPHC).

We promote scientific cooperation and collaboration between U.S. and Canadian government agencies, including the National Aeronautics and Space Administration (NASA) and the Canadian Space Agency (CSA). The United States and Canada also collaborate to enhance public health protection. In this, the EESTH Section acts as a liaison between U.S. and Canadian health agencies.

Softwood Lumber

The United States has been importing Canadian softwood lumber since the early 19th century, but disagreements over how this trade should be conducted have occasionally turned into disputes between the two countries. This trade impacts many Americans and Canadians, as more than 7 million Americans are employed in the housing and construction industry, and Canada supplies about one-third of the U.S. softwood lumber demand. In order to regularize this bilateral softwood trade, a rules-based framework was laid out in the Softwood Lumber Agreements (1996 and 2006). While the Agreement has not eliminated softwood lumber disputes completely, it has put in place structured guidelines to help settle these disputes. For more information, see visit the website of the Office of the United States Trade Representative.

NAFTA

On January 1st, 1994 the North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico entered into force. All remaining duties and quantitative restrictions were eliminated, as scheduled, on January 1, 2008. NAFTA created the world’s largest free trade area, which now links 444 million people producing $17 trillion (U.S) worth of goods and services. This trilateral agreement deepens and expands the bilateral Canada-U.S. Free Trade Agreement (1989). Over the seventeen years since the implementation of NAFTA, trade between Canada and the United States has more than doubled. For more information on NAFTA visit NAFTAnow.org.

Intellectual Property Rights

Although the United States and Canada share a common business culture in most respects, the United States has significant concerns regarding Canada’s legal framework for the protection of intellectual property rights (copyrights, trademarks, patent protection, etc.). Canada has been placed on the Office of the United States Trade Representative (USTR) Special 301 "Priority Watch List”" which designates U.S. trading partners that have inadequate intellectual property rights protection. The Canadian government has since strengthened data protection regulations, criminalized camcording in theaters, and participated in the Anti-Counterfeiting Trade Agreement (ACTA) negotiations. Nonetheless, the United States still has concerns. The Canadian Government has twice proposed bills to reform Canada's copyright laws but neither has passed. Parliament is considering a third attempt, Bill C-32, which aims to better reflect the rapidly evolving, modern digital age and to implement the World Intellectual Property Organization (WIPO) Internet Treaties, which Canada signed in 1997. Canada has yet to address weak laws regarding border seizure of counterfeit goods and inadequate protection of Pharmaceutical intellectual property rights.

Investment

The bilateral exchange of foreign direct and portfolio investment is a core element of the U.S.-Canadian bilateral relationship. It is strengthened by common business practices, market proximity, and open, transparent rules governing Foreign Direct Investment (FDI) and dispute settlement. U.S. FDI in Canada was CAD$288.3 billion in 2009, a 1.7% increase from 2008. U.S. FDI in Canada is primarily concentrated in the manufacturing, financial services and mining sectors. Canadian FDI in the United States was CAD$261.3 billion in 2009, down 12.2% from 2008. Sales of services in Canada by majority U.S.-owned affiliates were US$100.5 billion in 2007 (latest data available), while sales of services in the United States by majority Canada-owned firms were US$65.4 billion.

Dispute Settlement

The vast majority of U.S.-Canada trade occurs seamlessly and without need for government intervention. Given the size of the trade relationship, it is not surprising that some areas of dispute arise between the governments and citizens of the two countries. If these disputes cannot be settled through bilateral negotiations, there is recourse though the NAFTA and the WTO to deal with complaints by governments, businesses and investors.

When disputes occur, NAFTA directs those concerned to try to resolve their differences first through consultation. If no mutually acceptable solution is found, NAFTA provides for specific formal mechanisms. For example, Chapter 11 of the NAFTA provides a process to deal with complaints of investors who feel they have been treated unfairly by NAFTA Member states. For more information on the status of Chapter 11 investor-state arbitration, click here.

Cross-Border Supply Chains

Trade between Canada and the United States is a major part of both economies. It is the world's largest trading relationship between two countries. Approximately US$1.4 billion in goods and services are traded across the border each day. Each Canadian province trades more with the United States than with other provinces. The relationship is important to the American states as well; Canada is the leading export market for 36 U.S. states. The U.S. and Canadian economies are extremely integrated. It has been estimated that during the manufacturing process an automobile can cross the U.S.-Canadian border as many as seven times. Because of integrated, cross-border production and supply chains, what happens on one side of the border has immediate and important effects on the other side. The United States and Canada remain committed to maintaining the free movement of goods, services, investment and ideas between our two countries. Together we jointly certify trusted travelers and traders through a variety of programs.