Ontario, Alberta sign agreements to build trade-enabling infrastructure projects

Key Takeaways:

• The provinces signed two MOUs to develop new pipelines and rail lines aimed at connecting Alberta’s oil and gas with Ontario refineries and exporting Ontario’s critical minerals via new routes, including a proposed deep-sea port in James Bay.
• Premier Doug Ford and Premier Danielle Smith framed the infrastructure push as a way to diversify Canada’s trade partners, strengthen domestic supply chains, and reduce reliance on U.S. markets amid ongoing economic uncertainty.
• Ontario and Alberta pledged to advocate for a more favourable federal regulatory environment, explore financing options, and commit to Indigenous consultation as part of advancing “nation-building” energy and trade projects.

The Whole Story:

Ontario and Alberta have signed two new agreements aimed at strengthening energy and trade infrastructure, part of a broader push to diversify Canada’s export markets and reduce economic reliance on the United States.

Ontario Premier Doug Ford and Alberta Premier Danielle Smith announced the memorandums of understanding (MOUs) Monday, pledging to build new pipelines, rail lines and related infrastructure connecting Western Canada’s oil and gas to Ontario refineries, while expanding market access for critical minerals through northern ports.

“By building pipelines, rail lines and the energy and trade infrastructure that connects our country, we will build a more competitive, more resilient and more self-reliant economy,” said Ford. “Let’s build Canada.”

The agreements propose new rail connections between Ontario’s Ring of Fire region and western Canadian ports, using Ontario steel. Plans also include a feasibility study to map optimal routes and financing options, as well as commitments to consult Indigenous communities and leverage domestic supply chains.

Premier Smith said the agreements mark a shift toward industry-led development.

“These MOUs are about building pipelines and boosting trade that connect Canadian energy and products to the world,” she said. “Government must get out of the way, partner with industry and support the projects this country needs to grow.”

The provinces also agreed to advocate for a more favourable federal regulatory environment to support private investment in infrastructure, while deepening cooperation on nuclear energy development — including small modular and large-scale reactor technology.

In a nod to interprovincial trade, Ontario committed to prioritizing made-in-Canada vehicles for Alberta’s fleet and increasing the availability of Alberta alcoholic beverages on Ontario store shelves.

The new MOUs build on a trade agreement signed by the provinces in Saskatoon in June. Since April, Ontario has inked trade deals with six provinces and passed legislation eliminating all province-specific exceptions under the Canadian Free Trade Agreement — a first in Canada.

Ontario’s interprovincial trade totalled over $326 billion in 2023, with Alberta alone accounting for $62.4 billion in 2021, the most recent year of available data.

The Ford government says the latest agreements will help build a more integrated and resilient Canadian economy by cutting red tape, boosting supply chains and encouraging labour mobility across provinces.

“By tearing down interprovincial trade barriers and investing in strategic infrastructure, we are strengthening vital industries and ensuring a prosperous future for workers and businesses,” said Vic Fedeli, Ontario’s minister of economic development.

Ontario officials framed the announcements as part of a broader strategy to counter U.S. protectionism and strengthen Canada’s internal economy, with Energy and Mines Minister Stephen Lecce calling the move “a message to President Trump” that Canadians are ready to act decisively to protect their sovereignty.