Canada leverages energy, minerals, autos

Canada is moving into the 2026 Canada-United States-Mexico Agreement review by saying its leverage is not abstract: it is oil, gas, critical minerals and cars. (canada.ca 1) (canada.ca 2) Energy and Natural Resources Minister Tim Hodgson said in Toronto on April 24 that energy is Canada’s “strongest card” in the coming CUSMA renegotiation. He tied that argument to Canada’s role as a large supplier of crude oil, natural gas and electricity to the United States. (canada.ca) (globalnews.ca) Prime Minister Mark Carney’s government set up a new Advisory Committee on Canada-U.S. Economic Relations on April 21, and Dominic LeBlanc chaired its first meeting on April 27. Ottawa said the group will give strategic advice on the bilateral economy ahead of the trade review. (newswire.ca) (canada.ca) The minerals piece is already being backed with money. On March 3, Hodgson announced up to C$165.2 million for 22 projects, with Ottawa saying the package could unlock C$434 million in critical-minerals development and processing across eight provinces. (canada.ca) Canada is also trying to turn mineral policy into industrial policy. At the 2026 Prospectors and Developers Association of Canada convention, Ottawa said a second round of 30 partnerships and investments under its Critical Minerals Production Alliance had unlocked C$12.1 billion in mining project capital. (energynow.ca) (canada.ca) Autos sit in the middle of the same bargaining map because North American production is integrated plant by plant and part by part. Reuters reported in September 2025 that Carney waived a 2026 electric-vehicle sales requirement and offered tariff aid to help automakers absorb damage from U.S. measures. (reuters.com) The pressure on Ottawa comes from two directions at once. U.S. tariff threats are forcing Canada to defend access to its main export market, while Washington, Brussels and other allies are separately racing to build non-Chinese supply chains for lithium, nickel, graphite and rare earths. (cbc.ca) (reuters.com) That leaves Canada arguing that its value is not just raw supply, but location inside the North American manufacturing system. A federal investment document says Canada has 32 processing facilities, C$5.3 billion in 2024 critical-minerals capital spending and proximity to U.S. industrial hubs. (investcanada.ca) The counterargument inside Canada is that leverage on paper is not the same as leverage in operation. Analysts have warned that memorandums and partnerships will not matter much without faster mine approvals, more processing capacity and transport links that actually move material to market. (thehub.ca) (policyoptions.irpp.org) For now, Ottawa’s message is that the next round of trade talks will not be only about tariffs at the border. Canada wants Washington to negotiate with the reality that North America still runs on Canadian energy, Canadian minerals and Canadian-built parts. (canada.ca) (cbc.ca)