The premiers of Ontario, Alberta and Saskatchewan signed a comprehensive agreement Tuesday to build new pipelines and rail lines connecting western oil and gas to eastern markets, as the three provinces position Canada to reduce dependence on U.S. trade amid President Donald Trump’s tariff threats.
The memorandum of understanding calls for feasibility studies on east-west energy corridors using Ontario steel and commits the provinces to joint advocacy for sweeping federal regulatory changes. The proposed infrastructure would link Alberta’s oil and gas resources to refineries in southern Ontario and a planned deep-sea port in James Bay. The agreement also includes developing rail infrastructure for Ontario’s Ring of Fire critical mineral projects and cooperation on nuclear energy development.
The provinces committed to launching a joint feasibility study in 2025 to help advance private sector investments in the projects.
“This agreement sends a clear message: Ontario, Alberta and Saskatchewan are ready to get shovels in the ground and move forward on projects that will secure our long-term prosperity,” Ford said.
The announcement comes as the three conservative premiers advocate different approaches to Trump’s trade policies. Ford has refused to rule out energy export taxes as retaliation, while Smith firmly opposes such measures, warning they would have a “devastating impact on Alberta and on Canada.”
“The days of relying on the United States 100 percent — they’re done, they’re gone,” Ford declared. “We’re going to start being reliant and self-reliant on each other.”
The agreements also include pledges to increase interprovincial trade of alcohol and vehicles, with Ontario committing to greater market access for Alberta-made beverages while Alberta promises to buy more Canadian-made cars for its fleet.
Saskatchewan’s Moe said the agreement “commits our provinces to work together to unlock new markets, shore up our supply chains from mine to port and advocate for the federal reforms our industry needs.” The partnership will help advance “pipelines, rail connections and critical-mineral processing capacity” while “safeguarding thousands of jobs.” Annual trade between Ontario and Saskatchewan alone totaled $15 billion in 2021.
Environmental groups criticized the initiative when it was first announced earlier this month. “It’s shameful that the leaders of the two most prosperous provinces in Canada seem to believe that their economies can only grow if clean drinking water, clean air and a safe climate are sacrificed,” said Stephen Legault and Mike Marcolongo of Environmental Defence.
The provinces will jointly advocate for federal regulatory changes and push for streamlined project approval processes. The agreement specifically calls for repealing or significantly amending nine pieces of federal legislation including the Impact Assessment Act, Oil Tanker Moratorium Act, and greenhouse gas emissions caps.
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