The state of the relationship between Canada and the United States in 2007 is in transition. A recent period of chilled political relations, highly publicized trade disputes, and lack of substantial progress in defence relations is coming to an end. Political changes in 2006 in both Canada and the United States have created conditions for more cooperation in trade, security and defence policies.

Rather than continuing to negotiate on a piecemeal basis, this report recommends that the government of Canada pursue two comprehensive agreements with the United States, one on security measures and the management of the shared border, and another on creating integrated defence structures in land, sea, and missile defence, modeled on the existing arrangement in air defence.