A Pipeline of MOUs with Ontario Signed

The Calgary Stampede can feel far from business-as-usual with its cowboy attire, massive concerts, fair games, chuckwagon races, and, of course, one of the world’s largest rodeos, but for many of Canada’s most influential politicians, the Calgary Stampede’s ten sun-soaked days are often some of the busiest. On July 7th, Alberta Premier Danielle Smith and Ontario Premier Doug Ford, dressed in cowboy cosplay, announced the signing of two new Memorandums of Understanding (MOUs), which they say will both reinforce Canada’s economic sovereignty and bolster the provinces' respective economies.

The first MOU focuses on improving the flow of Alberta and Ontario’s oil, gas, and critical minerals to global markets through the development of trade corridors and improving energy infrastructure. To accomplish this, Smith and Ford have vowed to support new oil and gas pipelines, enhanced railways, and new port developments in Ontario, including in Ontario's strategic area of James Bay. Other promises included in the first MOU include expanding Canada’s energy processing and refining plants and collaborating with Ontario to open new nuclear energy plants in Alberta.

The second MOU aims to strengthen key industries in the two provinces—Alberta's alcohol industry and Ontario’s automotive industry. Alberta has committed to prioritizing Ontario-made vehicles for its government fleet, whereas Ontario has pledged to reduce trade barriers and encourage the flow of Alberta liquor and alcohol onto Ontario shelves.

The double MOU signing ceremony comes at a critical time for Canadians who have begun to radically rethink Canada’s economic structure and reliance on the United States amid U.S. President Donald Trump’s ever-increasing tariffs and threats against Canadian sovereignty. In June 2025, Nanos Research released a new poll showing a staggering 73% of Canadians in favour of building a new West-East pipeline, a number which has increased from 66% in 2023, according to an Ipsos poll that year.

For Ford, a key Canadian advocate against Trump’s trade war, the MOUs represent tariff insurance. “In the face of President Trump’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,” he told reporters, adding that every metre

of pipe and rail would be rolled from Ontario steel mills. Smith matched the urgency insisting that these MOUs are about getting “shovels in the ground and resources to market... The government must get out of the way, partner with industry and support the projects this country needs to grow.”

Although both provincial leaders focused much of their attention on the federal regulations which they say must be repealed to allow the success of the MOUs, Ottawa’s early signals have appeared unexpectedly positive. Just days before the signing ceremony, Prime Minister Mark Carney told the Calgary Herald that he believed a new oil pipeline to the West Coast is “highly, highly likely” to appear on the federal government’s list of major projects of national interest. Since entering office in March, Carney has focused on appeasing the concerns of Canadians—including through the removal of many federal regulations regarding interprovincial trade, meeting with global leaders to diversify Canada’s trading partners, and prioritizing so-called “nation-building projects”: projects which are expected to involve oil and gas, critical mineral, and nuclear energy developments. After what can only be described as a controversial nine years of Trudeau in power, both Smith and Ford have mentioned feeling hopeful about the potential of building a new and productive relationship with the federal government.

The potential economic implications of these MOUs are massive. A new pipeline off Canada’s West Coast has the potential to generate multi-billion-dollar profits in annual public revenue, and despite its challenges, a greatly anticipated West-East pipeline could exceed that. The focus on major infrastructure projects, including new railways, deep-sea ports, and nuclear developments, would amplify returns. Though receiving less fanfare, a commitment to boosting Alberta’s liquor industry and Ontario’s automotive industry would sustain skilled jobs, cushion potential downturns, and provide a concrete measure of growing interprovincial relationships.

The agreements are still preliminary. Although Smith expressed optimism about the chances of having a polished proposal by fall, there is a lot of work still to be done. Together, Alberta and Ontario have committed to conducting a joint feasibility study as soon as possible to study the best routes for new economic and energy corridors, as well as the financial and commercial tools that will be necessary for these projects. Beyond this study, the success of the MOUs will rely on the effective collaboration and sustained effort of Alberta, Ontario, and the federal government to turn words into action. The ability to follow through with these promises will determine

whether these agreements will mark a new era of interprovincial growth and partnership or merely remain unfulfilled promises.