As the federal government announces dollar-for-dollar counter-tariffs against the United States, the mayors of Ottawa and Gatineau, Que., reaffirmed their commitment Tuesday to strengthen economic ties between the two cities.
At a media event Tuesday morning, Ottawa Mayor Mark Sutcliffe and Gatineau Mayor Maude Marquis-Bissonnette signed a new economic co-operation pact between the two municipalities, including the creation of a distinct economic zone encompassing the National Capital Region.
“We already have a strong foundation, but this will bring the level of collaboration between our two cities to the next level,” Sutcliffe said.
The announcement comes after the collapse of the Canada-U.S. trade deal Friday evening, resulting in 50 per cent tariffs on $28 billion worth of Canadian goods including electronics, plastics, wood, paper and dairy.
Sutcliffe said it’s time to remove barriers to interprovincial trade, noting companies on both sides of the Ottawa River still face hurdles.
“These bureaucratic barriers have existed for far too long,” he said. “If there was ever a time to remove them, it is now.”
Under the new agreement, the two cities are also pledging to strengthen transportation links, promote tourism, build on the defence and cybersecurity sector, and create other opportunities for collaboration.
The two mayors previously met last year to discuss eliminating barriers to interprovincial trade.
Marquis-Bissonnette said the agreement signals a will to “consolidate our economy” and “create opportunities to downsize the quantity of barriers that we have between the two provinces.”
The announcement came the same day Prime Minister Mark Carney’s government announced details of its dollar-for-dollar counter-tariffs on $27.6 billion of comparable U.S. goods.
(Justin Tang/The Canadian Press)
Canada also announced $7.5 billion in support for workers and businesses affected by the U.S. tariffs, including expanding employment insurance and employee support programs, and increasing non-repayable federal loans.
“Building at home is not a Plan B. It is a Plan A,” said Industry Minister Mélanie Joly on Tuesday.
On Monday, Ontario Premier Doug Ford announced the province’s plans to support local businesses and workers by expanding the Protect Ontario Financing Program.
Sutcliffe said Tuesday he had yet to speak directly with the premier about the joint agreement with Gatineau, but said Ford wants to see “a strong economy in Ottawa.”
“I believe he will understand the benefits of creating a strong economic region here,” Sutcliffe said.
Sutcliffe previously announced on X his plan to bring forward a motion to city council Wednesday to discuss other ways to protect the local economy.
Under the agreement signed Tuesday, a joint Ottawa-Gatineau committee will be established to oversee the implementations of the new pact. Sutcliffe did not give a timeline for when the agreement will come into effect.