hesitant. Over two-thirds of Canada's aid has been allocated and over half has been disbursed on projects such as police trainers in Jordan. Canada also supports Paris Club efforts on debt reduction. Trade and the Border: Vital Links for Canada -------------------------------------------- 13. (SBU) The U.S. and Canada have the largest bilateral trade relationship in the history of the world and over 95% of that trade is trouble-free. The billion dollars a day in trade with the U.S. generates about a third of Canada,s GDP, with energy exports and the integrated North American auto industry dominating the picture. 14. (SBU) Since implementation of NAFTA ten years ago, US-Canada trade has doubled. Most Canadians see NAFTA as a success but are frustrated by its limits, thrown into relief by U.S.border closings and strongly support the GoC,s efforts to strengthen bilateral security cooperation. Continued DHS engagement with Canada via the Smart Border Action Plan, the Ridge-McLellan dialogue, and regular working-level meetings, is a key element in managing this anxiety and addressing underlying problems. The GoC is pushing to accelerate progress and add to the &Smart Border8 agenda in its version of the North American Initiative, &Beyond Smart Borders8. Energy Inter-Dependency ----------------------- 18. (U) Canada is by far the United States' largest foreign source of energy. It is our largest supplier of petroleum, as well as our leading external source of natural gas, uranium, and electric power. With Alberta,s oil sands now classified as &proven reserves,8 Canada,s petroleum resources of 180 billion barrels are second only to Saudi Arabia,s.