This report begins with an overview of Canada's political scene, economic conditions, security and foreign policy, and environmental initiatives, focusing particularly on issues that may be relevant to U.S. policymakers. This country survey is followed by several summaries of current bilateral issues in the political, international security, trade, and environmental arenas. The questions following each summary are designed as potential inquiries to Canadian officials to promote thought and discussion among policymakers.

This report covers the dispute between the U.S with its neighbors, Canada and Mexico, who say that the recent country-of-origin labeling (COOL) system implemented by the U.S. Department of Agriculture is unfair and does not meet its original objectives. This dispute was brought before the WTO dispute panel and found to be valid. The report ends with a discussion of options for the U.S. in regards to modifying COOL to follow WTO rulings.