The report summarizes highlights of papers presented in the conference entitled "Challenges in Agricultural Trade under CUSTA" held in Fargo, North Dakota on October 26-27, 2000. The main objective of the conference was to analyze emerging issues in agricultural trade between the United States and Canada under the U.S./Canada Free Trade Agreement (CUSTA). Specific themes include: (1) changes in trade patterns under CUSTA, (2) CUSTA's impact on bilateral agricultural trade, (3) recent evolution of the U.S. and Canadian marketing systems, (4) major issues for future commercial integration, and (5) trade disputes and negotiations.