Agreement aims to expand cross-border cooperation and strengthen North American economic security
TORONTO — Ontario Premier Doug Ford and Pennsylvania Governor Josh Shapiro have signed a new Memorandum of Understanding (MOU) aimed at deepening economic cooperation between the province and the U.S. state in areas including energy, critical minerals, manufacturing, life sciences and advanced nuclear technology.
The agreement, announced Tuesday in Toronto, is part of Ontario’s broader strategy to strengthen trade partnerships across the United States while positioning the province as a key supplier of energy and industrial resources in North America. The MOU also aligns with Ontario’s renewed “Building Fortress North America” plan, unveiled following Premier Ford’s recent trade mission to Washington, D.C.
Under the agreement, Ontario and Pennsylvania will explore expanding cross-border electricity trade and improving transmission infrastructure between their power grids. Ontario’s growing nuclear energy capacity, including investments in small modular reactor technology, is expected to play a central role in future energy cooperation.
“From affordable, reliable nuclear energy to critical minerals and more, Ontario has everything needed to support our allies, create jobs, protect continental security and make life more affordable for families on both sides of the border as we build Fortress North America,” said Premier Ford. “Ontario’s continued leadership in expanding our nuclear energy is an historic opportunity to support our friends and neighbours in Pennsylvania by exporting affordable, reliable energy that can power economic growth in both our jurisdictions. Today’s agreement will help us secure these benefits for workers and families in Ontario and Pennsylvania and will set the stage for more cooperation in the years to come.”
Energy trade and infrastructure among key priorities
The agreement includes plans to develop an electricity transmission and trade framework designed to increase power-sharing capacity between Ontario and Pennsylvania. Officials said the initiative could help improve energy reliability, lower electricity costs for households and businesses, and support long-term grid resilience in both jurisdictions.
Ontario continues to invest heavily in nuclear power expansion, including the development of what the province says will be the first small modular reactors in the G7. The province views nuclear energy as a cornerstone of its economic and industrial growth strategy, particularly as demand for clean and stable electricity increases across North America.
Trade between Ontario and Pennsylvania already represents a significant economic relationship. In 2025, bilateral goods trade between the two jurisdictions totalled approximately $20.5 billion CAD, with Ontario serving as Pennsylvania’s largest export market.
Governor Shapiro emphasized the importance of maintaining and expanding economic ties between the two regions despite broader trade uncertainties affecting Canada-U.S. relations.
“This Memorandum of Understanding builds on the strong working relationship that already exists between Pennsylvania and Ontario,” said Governor Shapiro. “I want Canadians and Canadian businesses to know that Pennsylvania remains a warm and welcoming place for you — we value our shared history, our shared values and our shared commitment to an economically prosperous future for both our peoples. Canada is Pennsylvania’s largest trading partner and we’re proud of the balanced trading relationship we have with our neighbours to the north. This MOU reaffirms our commitment to that relationship and sets the stage for deeper collaboration to grow our economies, attract investment and welcome visitors.”
Broader focus includes manufacturing, AI and Great Lakes protection
Beyond energy cooperation, the MOU outlines plans to strengthen collaboration across several strategic sectors, including steel, advanced manufacturing, critical minerals, agriculture, forestry, life sciences, artificial intelligence and technology.
Ontario officials said the agreement is intended to leverage the complementary economic strengths of both regions while supporting investment attraction and innovation-driven growth. The partnership also includes commitments related to environmental stewardship, specifically the protection and conservation of the Great Lakes ecosystem.
The agreement aims to support sustainable economic development throughout the Great Lakes region while reinforcing existing trade and supply chain connections between Ontario and Pennsylvania businesses.
“Ontario and Pennsylvania are integral economic partners, having supported generations of workers and businesses through cross-border trade,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Today’s Memorandum of Understanding will strengthen this storied relationship, signalling our government’s commitment to mutually beneficial trade agreements that unlock new job-creating opportunities for workers on both sides of the border.”
Ontario continues expanding U.S. economic partnerships
The Pennsylvania agreement marks the latest step in Ontario’s effort to deepen economic cooperation with individual U.S. states as the province seeks to build a more resilient export-driven economy.
Since 2023, Ontario has signed seven additional economic cooperation agreements with Indiana, Michigan, Nevada, Illinois, New Jersey, Maryland and New York. Provincial officials say the strategy is designed to strengthen Ontario’s competitiveness within the G7 while creating new opportunities for trade, investment and job creation.
The Ford government has increasingly focused on securing partnerships tied to energy security, advanced manufacturing supply chains and critical minerals, sectors viewed as essential to North America’s economic and geopolitical priorities.
Officials from both Ontario and Pennsylvania indicated that further discussions and implementation planning related to the new MOU are expected in the months ahead.