Written for secondary school Canadian students, the document examines Canada's international trade policy. It is arranged in three sections. Part I discusses the affect of Canada's trade policy on the individual citizen. Tariffs and non-tariff barriers to trade such as import licenses, preferential purchasing agreements, health and safety standards, and subsidies are explored. The section also outlines the history of the Canadian tariff in relation to the United States tariff since 1869 and notes the effects of the 1974 General Agreement on Tariffs and Trade (GATT). Tables present rates of tariffs on primary and manufactured goods, percentages of exports of goods-producing industries, and percentages of Canada's merchandise trade by country and by commodity: farm and fishery, crude materials, fabricated materials, and manufactured products. An analysis of changing demand for exports concludes the chatter. Part II examines trade patterns and Canada's comparative advantage in world trade, and focuses on factors which interfere with free trade including trade barriers, national policies, and the desire for security. Part III explains why Canada's small market cannot support a large number of producers and product lines at world competitive prices. Costs and benefits of two approaches are examined: trade liberalization and domestic measures. The reorganization of industry; the effects of free trade on employment and industrial efficiency; and economic, political, and social considerations; and possible routes to free trade are analyzed. (KC)