This paper assesses the potential impact on the New York State economy, industries, and regions of the recently implemented Canada-U.S. Free Trade Agreement (FTA). Canadian trade and investment have had significant impacts on the economies of the United States and New York state. An analysis of the potential impact of the FTA on New York state, focusing on the industries and regions most affected, is provided. Suggested strategies and policies for industries, specific firms, and government to pursue in order to take advantage of potential benefits of the FTA and to mitigate any negative impacts are presented. Because of the state's historical position as a major trading and investment partner with Canada, its strategic position at the axis of the industrial corridor of the United States and Canada, and its diverse and productive economic structure, including a supportive and extensive government economic development program, New York is poised to reap significant benefits from the FTA agreement. (Author/DB)