Canada and the United States are moving toward a two-way trade without barriers.

The aim of this report is to examine the future of Canada's relations with the United States and Mexico, seeking to advance those relations in ways that serve Canada's sovereign interests, promote Canadian values, and enhance the long-term security and prosperity of Canadians. Part 1 of the report discusses concerns about Canada's sovereignty in the context of continental integration, and looks at the ongoing effects on Canadian policy of the September 11 terrorist attacks. It provides a detailed overview of growing economic linkages within North America, and reviews other significant societal trends and variations within and across the 3 countries. Part 2 looks at Canada-US security concerns, notably at air, land and sea borders, and at defence arrangements. It looks at ways to improve existing bilateral and trilateral trade and investment flows, and examines the major elements in developing effective political strategies for managing Canada's North American relations.