For the last century or so, Canada and the United States have been among the closest of partner nations. There are many varied reasons for this. To begin with, there’s a shared commitment to democratic values and human rights on both sides of the 49th parallel, fostering mutual respect and collaboration on the global stage. We have geography in common, as well, with our two countries sharing custody of the majority of the North American continent. There’s also the fact that we’ve stood together several times as formal allies during times of war, forging a bond that has lasted until this day. And then there are the strong cultural and historical ties, such as our shared colonial past, which has served to bring our two countries together.
There’s another important factor at play in the close relationship between Canada and the United States—one that often doesn’t get as much attention as the other reasons mentioned above: the economy. The American and Canadian economies are incredibly intertwined, and this economic partnership has fostered stability and growth on both sides of the border. To give one prominent example, the combined North American automotive industry depends largely on cross-border supply chains, which has made manufacturing and innovation stronger for both nations. Another important example is the agricultural trade, where the exchange of goods like grain and livestock plays a key role in supporting food security and economic strength in both our nations.
I would like to propose that there is another major economic factor that has been responsible for strengthening the bond between Canada and the US: that of energy. In many ways, our respective energy industries are symbiotic, with Canada acting as the supplier of important natural resources such as crude oil and natural gas, and the United States acting as the processor, with its many large-scale refineries making those fossil fuels fit for consumption by both countries.
This energy partnership is far more than just a necessary economic transaction (although it is that); it’s a foundational pillar of the relationship between Canada and the United States. Building and maintaining cross-border pipelines like Enbridge Line 5 and the Keystone Pipeline System have been crucial for moving energy reliably between our two countries. These pipelines create many thousands of Canadian and American jobs and help both countries keep the power flowing to our farms, towns, and cities, which keeps us all secure and stable. This stability also carries with it an inherent economic boon, as it helps businesses plan better and invest confidently, leading to stronger and more consistent growth for both nations.
The energy relationship between Canada and the United States—exemplified by our shared pipelines—also boosts the value of both countries’ currencies. When Canada exports oil and natural gas to the United States, it brings in capital that strengthens the Canadian dollar. At the same time, the steady supply of nearby energy helps the US economy grow, which supports the value of the American dollar.
Beyond the economic benefits, our cooperation on energy infrastructure projects has fostered a deep sense of shared responsibility. Both nations work closely to ensure the safety, efficiency, and environmental sustainability of our pipelines, reflecting our mutual commitment to protecting our natural resources and the environment.
It also decreases our reliance on fossil fuels from other international sources, including unstable regions and countries that may have conflicting values and geopolitical agendas. In this way, the shared energy trade brings with it a national security benefit to both sides, as well as strengthening diplomatic ties.
The energy trade between Canada and the United States is a vital and often under-appreciated aspect of our bilateral relationship. It not only bolsters our already robust economic bond but also underscores the deep and enduring partnership between our two nations. As we move forward, this collaboration in the energy field will continue to be a key driver of prosperity and stability for both countries, ensuring that our connection remains strong for generations to come.