Canada-US Trade Relationship Under Threat Amid Shifts in US Policy

The Alberta Industrial Heartland in Canada is one of the world's leading industrial clusters, with $50 billion in existing capital investment and another $30 billion under construction. Located northeast of Edmonton, it comprises 582 square kilometers of industrial land and features over 40 companies producing fuels, fertilizers, petrochemicals, chemicals, hydrogen, electricity, natural gas liquids, plastics, and other value-added products.

Kirsten Hillman, former Canadian Ambassador to the United States from 2019 to 2026, spoke at the Alberta Industrial Heartland Association annual conference. She highlighted the success of NAFTA, which came into force in 1989 after Canada and the US negotiated a bilateral trade agreement, the Canada-US Free Trade Agreement (CUSFTA).

Hillman noted that while some Canadian companies became less competitive, overall, for all three countries, it was a massive success in terms of job creation, economic growth, competitiveness with the world, and productivity. She emphasized the importance of supply chain integration, stating that 70% of what Canada sells to the US are inputs into US manufacturing.

Hillman also discussed the current shift in the US administration's approach to trade, focusing on a 'Buy America' agenda and tariffs as key components. However, she believes that this region is extremely well-positioned to thrive and continue demonstrating leadership in the face of these changes.