OFFICIAL NAME:
Canada

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 major cities--Toronto (4.5 million), Montreal (3.4 million), Vancouver (2.0 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 (2002 census): 31.4 million.
Ethnic
groups: Anglophone 28%, Francophone 23%, other European 15%,
Asian/Arab/African 6%, indigenous Amerindian 2%, mixed background 26%.
Religions: Roman Catholic 44.4%, Protestant 29%, other Christian 4.2%, Muslim 2%, other 4%.
Languages: English, French.
Education: Literacy--99% of population aged 15 and over has at least a ninth-grade education.
Health: Infant mortality rate--5.2/1,000. Life expectancy—77.1 yrs. male, 82.2 yrs. female.
Work
force (15.4 million): Goods-producing sector: 25%, of which:
Manufacturing 15%; construction 6%; agriculture 2%; natural resources
2%; utilities 1%. Service-producing sector: 75%, of which: trade 16%;
health care and social assistance 10%; educational services 7%,
accommodation and food services 7%; professional, scientific, and
technical services 6%; finance 6%; public administration 5%;
transportation and warehousing 5%; information, culture, and recreation
5%; other services 5 %; management, administrative, and other support
4%.

Government
Type: Confederation with parliamentary democracy.
Confederation: 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 (308-member House of Commons; 105-seat Senate). Judicial--Supreme Court.
Federal-level political parties: Liberal Party, Bloc Quebecois, New Democratic Party, Conservative Party of Canada.
Subdivisions: 10 provinces, 3 territories.

Economy
Nominal GDP (2003): $869.2 billion.
Real GDP growth rate (2003): 5.3%.
Nominal per capita GDP (2003): $27,682.
Natural
resources: Petroleum and natural gas, hydroelectric power, metals and
minerals, fish, forests, wildlife, abundant fresh water.
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
(2003)--$313.8 billion: motor vehicles and spare parts, lumber, wood
pulp and newsprint, crude and fabricated metals, natural gas, crude
petroleum, wheat. In 2003, 83% of Canadian exports went to the
United States. Merchandise imports (2003)--$289.7 billion:
motor vehicles and parts, industrial machinery, crude petroleum,
chemicals, agricultural machinery. In 2003, 70% of 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--the equivalent of over $1 billion a day in
goods, services, and investment income--and people, more than 200
million a year crossing the U.S.-Canadian border. In fields ranging
from law enforcement cooperation to 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. Canada also is 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 April 2001, Canada
hosted the third Summit of the Americas in Quebec City. Canada served
as the 2002 G-8 chair and hosted the G-8 summit in Kananaskis, Alberta,
in June 2002. Canada also seeks to expand its ties to Pacific Rim
economies through membership in the Asia-Pacific Economic Cooperation
forum (APEC).

Although Canada views good
relations with the U.S. as crucial to a wide range of interests, it
occasionally pursues independent policies at odds with the United
States. In 2003, Canada did not participate in the U.S.-led military
coalition that liberated Iraq (although it has contributed financially
to Iraq’s reconstruction). Another example is Canada’s leadership in
the creation of and on-going support for the UN-created International
Criminal Court (ICC) for war crimes, which the U.S. opposes due to
fundamental flaws in the treaty that leave the ICC vulnerable to
exploitation and politically motivated prosecutions. The United States
and Canada also differ on the issue of landmines. Canada is a strong
proponent of the Mine Ban Treaty (the Ottawa Convention), which bans
the use of anti-personnel mines. The United States, while the world’s
leading supporter of demining initiatives, declined to sign the treaty
due to unmet concerns regarding the protection of its forces and
allies, particularly those serving on the Korean Peninsula, as well as
the lack of exemptions for mixed munitions.

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 military response to the
terrorist attacks of September 11, 2001 both tested and strengthened
military cooperation between the United States and Canada. In December
2002, the two countries established a Binational Planning Group to
develop joint plans for maritime and land defense and for military
support to civil authorities in times of emergency. Since 2002, Canada
has participated in joint military actions in Afghanistan and, in early
2004, Canada assumed command of the International Security and
Assistance Forces (ISAF) in Kabul. Canada has also contributed to
stabilization efforts in Haiti, including by deploying over 500
Canadian troops.

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 and signed an annex on
ground level ozone in 2000. In June 2003, Canada and the U.S. announced
a new border air quality initiative designed to increase cooperation in
combating cross-border air pollution, including particulate matter.
Three regional projects have been selected for initial joint action.

While law enforcement
cooperation and coordination were excellent prior to the terrorist
attacks on the United States of September 11, they have since become
even closer. Canada, like the United States, has strengthened its laws
and realigned resources to fight terrorism. U.S.-Canada bilateral and
multilateral cooperation in the fight is unequaled.

Trade and Investment
The
United States and Canada have the world's largest bilateral trading
relationship. In 2003, total merchandise trade between the two
countries was $394 billion, translating into over $1 billion in goods
crossing the border every day. 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 39 of
the 50 U.S. States.

The comprehensive
U.S.-Canada Free Trade Agreement (FTA), which went into effect in 1989,
was superseded by the North American Free Trade Agreement among the
United States, Canada and Mexico (NAFTA) in 1994. NAFTA, which embraces
the 406 million people of the three North American countries, expanded
upon FTA commitments to move toward reducing trade barriers and
establishing agreed upon trade rules. It has also resolved
long-standing bilateral irritants and liberalized rules in several
areas, including agriculture, services, energy, financial services,
investment, and government procurement. Since the implementation of
NAFTA in 1994, total two-way merchandise trade between the United
States and Canada has grown by 125%. When services are added, the
growth has been 142%.

Canada is an urban
services-dependent economy with a large manufacturing base. Since
Canada is the largest export market for 39 of the 50 States, the
U.S.-Canada border is extremely important to the well-being and
livelihood of millions of Americans.

The U.S. is Canada's
leading agricultural market, taking nearly one-third of all food
exports. However, imports of Canadian livestock products, particularly
ruminants, fell drastically after the discovery of a single case of
bovine spongiform encephalopathy (BSE, mad cow disease) in Spring 2003.
Only limited shipments of certain beef cuts are currently permitted.
Conversely, Canada is the second-largest U.S. agricultural market
(after Japan), primarily importing fresh fruits and vegetables and
livestock products. Of Canada's $27 billion in exports of wood, pulp,
and paper in 2001, 80% went to the United States.

The U.S. and Canada enjoy
the largest energy trade relationship in the world, with Canada being
the single largest foreign supplier of energy to the United States –
17% of U.S. oil imports and 18% of U.S. natural gas demand. Recognition
of the commercial viability of Canada’s oil sands has raised Canada’s
proven reserves to 180 billion barrels, making it the world’s
second-largest holder of reserves after Saudi Arabia. The electricity
grids of the United States and Canada are linked and both countries
share hydropower facilities on the Western borders. Quebec is a major
source of electricity for New England.

While 98% of U.S.-Canada
trade flows smoothly, there are occasional bilateral trade disputes
over the remaining 2%. Usually, however, these issues are resolved
through bilateral consultative forums or referral to World Trade
Organization (WTO) or NAFTA dispute resolution. For example, in
response to WTO challenges by the United States, 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, and Canada amended its patent laws to extend patent protection
to 20 years. Canada currently has several disputes with the United
States related to U.S. trade remedy law, including actions taken by the
U.S. Government on softwood lumber, pending in the WTO and NAFTA
dispute mechanisms. The U.S. and Canada resolved a WTO dispute over
dairy products in 2003. 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 that demarcated the territorial sea boundary.

The United States and
Canada signed a Pacific Salmon Agreement in June 1999 that settled
differences over implementation of the 1985 Pacific Salmon Treaty. In
2001, the two countries reached agreement on Yukon River Salmon,
implementing a new abundance-based resource management regime and
effectively realizing coordinated management over all West Coast salmon
fisheries. The United States and Canada recently reached agreement on
sharing another transboundary marine resource, Pacific Hake.

In 1995, the United States
and Canada signed a liberalized aviation agreement, and air traffic
between the two countries has increased dramatically as a result. U.S.
immigration and customs inspectors provide preclearance services at
seven airports in Canada, allowing air travelers direct connections in
the United States. 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. Statistics Canada reports that at the end of
2002, the stock of U.S. foreign direct investment in Canada was $142.8
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. (Note: 2003 figures are still
not available.)

Canada is the third-largest
foreign investor in the United States. At the end of 2002, the stock of
Canadian direct investment in the United States was estimated at $92
billion. Canadian investment in the United States, including
investments from Canadian holding companies in the Netherlands, was
$128.5 billion. Canadian investment in the United States is
concentrated in manufacturing, wholesale trade, real estate, petroleum,
finance, and insurance and other services.

Principal U.S. Embassy Officials
Ambassador--Paul Cellucci
Deputy Chief of Mission--John Dickson
Minister-Counselor for Political Affairs--Brian Flora
Minister-Counselor for Economic Affairs--Michael Gallagher
Minister-Counselor for Public Affairs--James Williams
Minister-Counselor for Commercial Affairs--Thomas Lee Boam
Minister-Counselor for Consular Affairs--Keith Powell

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. 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, who serves as her representative in Canada, 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 308-member (as of the June 28, 2004 elections)
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. Vacancies in the
105-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 is also 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 (as of July 20, 2004)
Head of State--Queen Elizabeth II
Governor General--Adrienne Clarkson
Prime Minister--Paul Martin
Minister of Foreign Affairs--Pierre Pettigrew
Ambassador to the United States--Michael Kergin
Ambassador to the United Nations--Allan Rock 

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

POLITICAL CONDITIONS
On
December 12, 2003, Paul Martin became Canada's twenty-first Prime
Minister, succeeding Jean Chretien.  A successful businessman in
his own right, Martin has broad prior governmental experience, serving
as Chretien’s Minister of Finance from 1993-2002. In the June 28,
2004 elections the Liberal Party received a fourth consecutive mandate
to govern, although they only earned a plurality (135 of 308) of the
seats in parliament. The remainder of the seats were split among
three other parties and one Independent M.P.  The newly formed
Conservative Party of Canada, led by Stephen Harper, won 99 seats--some
21 more than the combined total in the last election of its two
predecessor parties, the western-based conservative Canadian Alliance
and the Progressive Conservative party. The pro-sovereignty Bloc
Quebecois won 54 seats, up from the 33 held at adjournment of
parliament. The Bloc’s gains at the expense of the Liberals are
broadly attributed to fallout from a Chretien-era scandal involving
misuse of funds to promote the federal government’s image in
Quebec. Finally, the left-of-center New Democratic Party increased
its holdings from 14 to 19 seats.  

Though the new government is considered
to be relatively stable, expectations are that it will not last more
than 18 to 24 months. As a minority government, the Liberals will
advance their agenda on an issue-by-issue basis, rather than creating a
majority through a formal alliance with another party. The Prime
Minister may call another election at his discretion or be forced to do
so if his government loses a confidence vote in the House of Commons.

In Canada’s political system, a key
challenge for any federal government is balancing the conflicting
interests of Canada’s 10 provinces and 3 territories. Quebec, which
represents 23% of the national population (and has 75 seats in the
House of Commons), seeks to preserve its distinctive francophone
nature, and is perceived by the less-populous western provinces as
wielding undue influence on the country. The western provinces
don't believe their interests are given enough attention in Ottawa;
industrialized central Canada is chiefly concerned with economic
development; and the Atlantic provinces resist federal claims to
fishing and mineral rights off their shores. The government, which
has been under Liberal control since 1993, has ceded some spending
power in areas of provincial jurisdiction, while strengthening the
federal role in areas such as inter-provincial trade and the regulation
of securities.  Decreased federal support to the provinces for
health care services has been a major point of contention between
provincial leaders and the Chretien and Martin governments.

National Unity
The election in
April 2003 of Premier Jean Charest and the Liberal Party of Quebec to
govern Canada’s second most populous province, was a significant
victory for the Chretien government, which had struggled, under the
threat of secession, to accommodate the aspirations of the
French-speaking province. Though separatist aspirations are currently
muted, and for now most Quebec voters seem to appreciate the assurance
of maintaining their separate francophone identity and the economic
benefits of remaining in the Confederation, 47% of Quebec voters still
identify themselves as desiring a sovereign state.

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
that 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.

The National Passport Information Center
(NPIC) is the U.S. Department of State's single, centralized public
contact center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators for
TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern
Time, excluding federal holidays.

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 their travel via the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.


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