OTTAWA — The U.S. ambassador to Canada says he is “encouraged” by the energy deal Prime Minister Mark Carney struck with Alberta Premier Danielle Smith, saying he believes it will lead to more oil and gas production — increasing expectations that more product will flow south of the border.

Pete Hoekstra’s comment come as Carney weathers some domestic political fallout since the signing of that agreement, with critics of it, such as B.C. Premier David Eby, saying no proponent has even stepped forward to propose building a new pipeline.

When it comes to the Canada-U.S. relationship, however, oil had formed part of the negotiations between Carney and Trump in exchange for reprieve from tariffs, before the U.S. president called off the talks in late October. It was also set to cover uranium.

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