TORONTO, ONTARIO — Pennsylvania and Ontario signed a memorandum of understanding Friday aimed at expanding cross-border trade, energy cooperation, and investment, reinforcing economic ties between the Commonwealth and its largest international trading partner.
Governor Josh Shapiro and Ontario Premier Doug Ford signed the agreement following a bilateral meeting in Toronto, establishing a framework for collaboration across energy, critical minerals, advanced manufacturing, agriculture, life sciences, technology, forestry, and Great Lakes initiatives.
The agreement includes plans to develop an electricity transmission and trade framework linking Pennsylvania and Ontario’s power grids, a move officials said could increase energy transfers between the jurisdictions and support lower costs and improved grid reliability.
The pact comes as Pennsylvania seeks to strengthen economic relationships with Canada, which accounted for $13.9 billion in Pennsylvania exports and $13.4 billion in imports in 2025. Ontario represented nearly three-quarters of the Commonwealth’s exports to Canada and remains Pennsylvania’s largest provincial trading partner.
“This Memorandum of Understanding builds on the strong working relationship that already exists between Pennsylvania and Ontario,” Shapiro said. He added that the agreement is intended to support economic growth, attract investment, and expand trade between the two jurisdictions.
Ford pointed to opportunities in energy and critical minerals, describing Ontario’s growing nuclear energy sector as a potential source of electricity exports that could support economic growth on both sides of the border.
As part of the agreement, Pennsylvania and Ontario will establish a joint working group to coordinate trade missions, information-sharing efforts, workforce development initiatives, regulatory collaboration, and academic partnerships.
Canadian investment already plays a significant role in Pennsylvania’s economy. According to the Governor’s Office, 812 Canadian business locations supported approximately 32,000 jobs across the Commonwealth in 2025, with 57% of those operations tied to Ontario-based companies.
Tourism also remains a major component of the relationship. State officials estimate nearly 500,000 Canadians will visit Pennsylvania in 2026, contributing to an industry that supports roughly 500,000 jobs and generates $84 billion in annual economic activity statewide.
The agreement marks the latest step in Pennsylvania’s broader effort to deepen economic ties with Canada, following Shapiro’s participation in regional Great Lakes initiatives and previous meetings with Canadian leaders focused on trade and investment.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.