World Notes CANADA

Though they were overshadowed by the summiteers in Washington, U.S. and Canadian negotiators reached a historic agreement of their own last week. In Ottawa, the two sides put the final touches on a 250-page free-trade treaty that by 1999 will lift all tariffs between the world's two largest trading partners (total 1986 volume: $124 billion). The pact could mean lower prices for everything from American cars to Canadian cod.

After the U.S. and Canada sign it by Jan. 2, the treaty will almost certainly be approved by Congress. Despite opposition in Ottawa, the Progressive Conservative Party majority in Canada's House of Commons virtually guarantees that the treaty will take effect.