The Canadian provinces of Ontario and Alberta have signed two Memorandums of Understanding (MOUs) to build new rail lines connecting Ontario’s Ring of Fire region, critical mineral mining projects, and processing facilities to western Canadian ports, as well as pipelines linking western Canadian oil and gas to new and existing refineries in southern Ontario, expanding export opportunities, the provincial government leaders reported July 7. Both efforts, they said, would help the country diversify trade.
“To move these projects forward, Ontario and Alberta will soon launch a joint feasibility study to help determine the optimal route and endpoints for new economic and energy corridors, what financing or commercial tools may be necessary, and how to best leverage home-grown supply chains to build these projects, including Ontario steel,” the Office of the Premier of Ontario reported in the signing announcement. “As these projects advance, Ontario and Alberta will continue to fulfill their duty to consult with Indigenous communities.”
As part of the MOUs, the governments of Ontario and Alberta have agreed “to advocate for a federal regulatory environment that encourages private-sector investments in new energy and trade infrastructure projects, as well as to cooperate to advance the development of nuclear energy, including sharing of technologies and expertise in small-modular and large-scale reactors to support new nuclear facilities in Alberta and Ontario to meet growing needs of the electricity grid and industrial energy needs for power and steam,” according to the Office of the Premier of Ontario. They also agreed “to support the prioritization of made-in-Canada vehicles for the Alberta government’s fleet of vehicles and to support the increased presence of Alberta beer, wine, liquor and other alcoholic beverages on Ontario store shelves.” These measures are said to be built on an MOU that was signed between Ontario and Alberta on June 1, 2025, in Saskatoon, “with the aim of tearing down trade barriers between the two provinces.”
Ontario since April 2025 has signed agreements supporting the removal of interprovincial trade barriers with six provinces. It also passed the Protect Ontario Through Free Trade Within Canada Act, which received royal assent on June 5, 2025, and was the first jurisdiction in Canada to eliminate all its party-specific exceptions under the Canadian Free Trade Agreement.
According to the Office of the Premier of Ontario, two-way trade in goods and services between Ontario and other provinces and territories in Canada was valued at more than $326 billion in 2023. The Ontario government, it said, “will continue to work with its federal, provincial and territorial partners through the Canadian Free Trade Agreement and other trade-enhancing initiatives to advance interprovincial trade across Canada.”
“In the face of [POTUS 47’s] tariffs and ongoing economic uncertainty, Canadians need to work together to build the infrastructure that will diversify our trading partners and end our dependence on the United States,” Ontario Premier Doug Ford said in the announcement. “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 and country.”
“Alberta and Ontario are joining forces to get shovels in the ground and resources to market,” Alberta Premier Danielle Smith said in the announcement. “These MOUs are about building pipelines and boosting trade that connect Canadian energy and products to the world, while advocating for the right conditions to get it done. Government must get out of the way, partner with industry and support the projects this country needs to grow.”
According to a report by The Canadian Press, “Ford has been trying for years to build a critical mineral supply chain that would connect the mines in northern Ontario to processing facilities further south. It was first part of his vision to create an electric vehicle battery supply chain, after significant investments in several plants in recent years.”
