The liquids issue is one that is truly a global approach to a problem. What happens with the Israelis who fly into the U.S. is that they must fly into an international terminal, where they will then go through the customs proceedings. If they want to make a connecting flight, they will then have to pass through re-screening. If the passengers have the liquids, they will have them confiscated at that point.
What makes it so important for Canada to be completely aligned with the U.S. requirements is that we have the pre-clearance arrangements, whereby you clear American customs in Canada and then arrive as a domestic flight in the U.S. If you're making a connection to another flight within the United States, there are no customs formalities, and there's no additional screening.