I'm quite surprised to hear all the defensive tones. I expected jokes like Alice's list and Cara's explanation of Canada.
What's it like being next to America? Well, believe it or not, most Canadians I know would find the following very funny:
Until a few years ago, the UN rated Japan as the best country to live in, ranking Canada second. Recently the positions reversed. A Canadian was heard to utter: Damn, those Japanese, they've stolen our second place!
Being, perhaps better educated in 1783?, the framers of the US constitution knew Canada existed. They cursed us by saying we could join the US any time we wanted to. That does strange things to a country.