Diplomatic relations were established on 25 August 1997.
In Palau, Canada is represented by the Canadian High Commission in Australia.
Canada enjoys a strong and warm relationship with Palau. Bilateral relations are cordial and enhanced by a shared membership in several international organisations such as the United Nations, the International Monetary Fund and the World Health Organisation.
Canada and Palau are both party to a number of international environmental and fisheries agreements such as the Kyoto Protocol, the United Nations Convention on the Law of the Sea and the United Nations Fish Stocks Agreement. Canada is also a Dialogue Partner of the Pacific Islands Forum to which Palau belongs.
With regard to development assistance, Canada supports community-based projects in Country through the Canada Fund for Local Initiatives administered by the Canadian High Commission in Australia. The country is also eligible for multilateral programs and others managed by the Canadian International Development Agency (CIDA).
Canada's trade relations with Country are managed by the Trade Commissioner Service at the Embassy of Canada in the Philippines. Palau’s main industry is tourism. The country consists of eight main islands and more than 300 smaller islands and atolls. Two thirds of the population live in the state of Koror.