This paper is organized in three parts. Part one discusses the main objective of the U.S.-Canada Free Trade Agreement (FTA): to create and increasingly open market for trade and investment in goods and services between the world's two largest trading partners. Part two analyzes the Candian agriculture and agricultural trade policies. Different types of government policies and processes of policy formation are described. Finally, the impact of the FTA upon U.S.-Canada bilateral agricultural trade are explored. In addition, the trade problems unresolved by the FTA are identified. From this study, it is revealed that the U.S.-Canada FTA could provide as a valuable paradigm for multilateral trade negotiations elsewhere.