Given the importance of the trade relationship between the two countries, the level of U. S. FDI in the Canadian agriculture and food sector, and the on-going trade disputes, this sector offers a prime. [...] The purpose of this paper is to investigate the relationship between the level of United States - Canada agricultural product trade and U. S. FDI into the Canadian agriculture and food sector. [...] For any given level of production efficiency in the two countries, the greater the mobility of capital the higher the volume of trade. [...] The trade data includes the value of Canadian exports to the United States and the value of Canadian imports from the United States for each 3 digit. [...] Total trade represents the value of Canadian exports to the United States plus the value of Canadian imports from the United States.