Ontario and State of Maryland Strategic Investment and Procurement Agreement (SIPA)Published on December 18, 2020
Doug Ford, Premier of Ontario, and Larry Hogan, Governor of Maryland, finalized a new, historic strategic investment and procurement agreement (SIPA) that will increase trade, attract investment, and encourage job creation in both jurisdictions. Areas of focus will be advanced manufacturing, infrastructure and the agri-food sector.
We are pleased to announce our first SIPA with the State of Maryland. Ontario's strong relationship with our neighbours to the south cannot be understated. In 2019, Ontario was the top export destination for merchandise trade for 19 U.S. states, and ranked second for nine U.S. states. Two-way trade between Ontario and the U.S. amount to $390 billion and if Ontario were a country, we would be their third largest trading partner.
However, we know that we can’t take these important relationships for granted. That’s why Ontario is taking a proactive approach by pursuing Strategic Investment and Procurement Agreements (SIPAs) with U.S. states to make it easier for businesses in the province and in the U.S. to do business with one another.
Ontario is Maryland’s top trading partner and two-way trade totaled $2.3 billion. This new agreement is a platform on which to build on this strong economic relationship.
The agreement includes activities to:
- Increase investment, job creation, and two-way trade in both jurisdictions. Areas of focus will be advanced manufacturing, infrastructure, and the agri-food sector.
- Collaborate to help mitigate the impacts of unforeseeable events, such as natural disasters or public health emergencies, which includes sharing best practices to support ongoing responses to the COVID-19 pandemic.
- Create a first-of-its kind Procurement Cooperation Council, improving transparency and engagement on government purchasing for businesses based in Ontario and Maryland.
- Track the agreement’s effectiveness against key performance metrics, such as total two-way trade, total foreign direct investment, and the total number of Ontario-Maryland foreign direct investment projects.
The economic downturn resulting from COVID-19 is an even greater incentive to maintain our longstanding and positive trade relationships to ensure Ontario businesses have access to the world's markets. Strengthening our unique trading partnership will ensure that everyday consumers, workers and businesses can emerge from this period of economic uncertainty in a position of strength.
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