The results of this study will address three major issues. First, this study will construct a gravity model to determine if the current trade flows between Canada and the EU, and Quebec and the EU, are above, at or below potential. Doing this will determine whether an FTA could help to increase trade between Canada and the EU, and Quebec and the EU. Second, this study will perform an analysis of the major industries involved in Quebec-EU trade to determine the extent to which tariff and non-tariff barriers are affecting trade flows. This will help to determine which industries will be important to Quebec should a Canada-EU FTA be negotiated. The results of the analysis will determine which industries will likely benefit, and which industries could suffer from an FTA. Last, this study will examine the extent to which Canada and Quebec are reliant on the United States as a market for export and how a Canada-EU FTA might reduce any dependency.