Photo courtesy of Anadolu
Canada is stepping up efforts to reduce its economic dependence on the United States, announcing C$4.7 billion in rail manufacturing investment as trade relations between the neighboring countries deteriorated.
Prime Minister Mark Carney said Thursday that 313 railway cars would be produced in Thunder Bay, Ontario, as part of the modernization of Canada’s rail network.
The project will rely on Canadian workers and locally sourced materials, including steel. Carney said railway equipment previously manufactured in the United States would instead be produced domestically.
The investment came as Ottawa sought to strengthen industries vulnerable to disruptions in its relationship with Washington. The United States remains Canada’s largest trading partner, receiving roughly C$400 billion in Canadian exports each year.
Canada’s heavy exposure to the US market has become a greater concern after bilateral trade negotiations broke down last week.
Carney ordered Canadian negotiators to leave Washington after rejecting US demands that he said would interfere with Canada’s ability to pursue an independent trade policy.
Among the conditions described by Carney was a proposal requiring US approval before Canada could enter future trade agreements with other countries. He characterized the demand as an unacceptable restriction on Canadian sovereignty.
The rail investment signals Ottawa’s push to shift more production and investment toward Canada as it reassesses its economic relationship with the United States and seeks greater resilience in strategic industries.