From Wikipedia; Canada Day is frequently referred to as “Canada's Birthday” and the occasion marks the joining of the British North American colonies of Nova Scotia, New Brunswick, and the Province of Canada into a federation of four provinces (the Province of Canada being divided, in the process, into Ontario and Quebec) on July 1, 1867. Canada became a kingdom in its own right on that date, but the British Parliament kept limited rights of political control over the new country that were shed by stages over the years until the last vestiges were surrendered in 1982 when the Constitution Act patriated the Canadian constitution .
Under the federal Holidays Act, Canada Day is observed on July 1 unless that date falls on a Sunday, in which case July 2 is the statutory holiday, although celebratory events generally take place on July 1 even though it is not the legal holiday. If it falls on a Saturday, the following Monday is generally also a day off for those businesses ordinarily closed on Saturdays.
Similar to the American Independence Day, Canada Day is celebrated with fireworks, barbecues, and drinking.