Canada-U.S. energy trade takes centre stage as Ottawa, industry align ahead of CUSMA review
Ottawa met with major oil and gas executives to stress long-term stability for Canada-U.S. energy trade as the CUSMA renewal approaches next month.
Federal ministers and senior industry figures held a lengthy meeting in Ottawa this week to coordinate positions on Canada-U.S. energy trade ahead of an imminent review of the Canada-United States-Mexico Agreement (CUSMA). The session, attended by Cabinet members and executives from major oil and gas companies, produced a shared focus on preserving cross-border energy flows while exploring export diversification. Government officials then carried those priorities into diplomatic outreach to Washington and Mexico City as the CUSMA renewal negotiation approaches.
Federal ministers meet oil and gas executives ahead of CUSMA talks
The meeting brought together Minister responsible for Canada-U.S. trade and Privy Council President Dominic LeBlanc, Natural Resources Minister Tim Hodgson and senior industry leaders for nearly two hours. Participants included senior executives from Cenovus, AltaGas and South Bow among others, who discussed how integrated energy markets should be treated in the upcoming CUSMA review. Industry sources and ministers described the discussions as broadly aligned on the need for legal and commercial stability for energy shipments between Canada and the United States.
Ottawa recommends 16-year renewal to U.S. and Mexico
Ahead of travel to Washington, Ottawa formally proposed extending CUSMA for 16 years to its U.S. and Mexican counterparts, signaling a desire for long-term predictability. The government framed that recommendation as a way to lock in rules that support investment and supply-chain planning across the integrated North American energy sector. Ministers emphasized the role of energy in broader economic and trade strategies during the diplomatic outreach.
Trade data highlight dependence on the U.S. market
Recent federal and regulatory figures underline why Canada prioritizes energy access to the United States: energy sales remain the country’s largest export category to its southern neighbour. Data from the national energy regulator show Canadian exports of oil, gas and related products to the U.S. totaled roughly $158 billion last year and accounted for about one-fifth of Canada’s global goods exports. The rapid ramp-up of projects such as the Trans Mountain expansion and the start of LNG Canada helped push total hydrocarbon exports to the global market in 2025, with the U.S. still receiving the vast majority.
Industry urges long-term rules and warns against using energy as leverage
Executives at the meeting stressed that a stable, predictable trade framework is essential for planning capital-intensive energy projects and maintaining reliable supply chains. Senior industry voices argued that using energy as a negotiating chip would undermine decades of mutually beneficial commerce and investment. Independent analysts echoed those concerns, saying attempts to weaponize flows—whether oil, gas or electricity—would be risky for both suppliers and buyers and could leave Canadian producers with limited market options.
Diversification push and pipeline proposals to reach new markets
While underlining the importance of the U.S. market, Ottawa and industry also discussed accelerating exports to non-U.S. customers as part of a diversification strategy. The federal government has set an ambition to double exports outside the U.S. over the next decade, and proponents say new Pacific-coast infrastructure could move crude and liquefied natural gas to Asia and other regions. Provincial proposals and private-sector plans for pipelines and LNG expansions are being pitched as ways to capture international demand without sacrificing the integrated North American market.
Business groups and policy experts call for a balanced approach
Business Council and academic experts urged a strategy that expands global access while keeping the U.S. relationship central. The council noted that crude oil remains one of Canada’s most significant diversification opportunities and argued there is enough production capacity to serve multiple markets. Policy specialists recommended pursuing faster growth into non-U.S. markets without reducing the rate of supply to the United States, framing diversification as additive rather than zero-sum.
The meeting in Ottawa and the government’s subsequent diplomatic outreach illustrate a coordinated effort to protect cross-border energy trade during the CUSMA renewal, while also pursuing new export routes and markets. Stakeholders agreed that legal certainty, long-term contracts and investment-friendly rules will be critical as Canada seeks to both sustain its traditional energy ties with the United States and expand sales abroad.
