ONTARIO POSTPONES THREAT TO CANCEL STARLINK AGREEMENT ON CANADIAN TARIFFS
TORONTO, ON – In a surprise move, the government of Ontario has announced that it has postponed its threat to cancel the Starlink Agreement, a deal that allows Nova Scotia-based company to operate a high-speed internet service in the province. The agreement was initially set to be scrapped after Canada imposed new tariffs on American goods, including aluminum.
The Starlink Agreement, which was signed in 2017, allows Xplornis, the parent company of Starlink, to provide high-speed internet services to customers in rural and remote areas of Ontario. The agreement was seen as a significant step forward in bridging the digital divide in the province, as it would bring fast and reliable internet to areas that were previously underserved or unserved.
However, in a move that surprised many, the Ontario government announced last week that it would be cancelling the agreement due to a clause in the deal that requires the province to pay a fee to Xplornis every time it imposes a new tariff on American goods. The clause was inserted as a means of offsetting the cost of providing the internet service to rural areas, but it has become a point of contention in the wake of Canada’s decision to impose tariffs on imported aluminum.
The tariffs, which were announced by the federal government earlier this year, were a response to the Trump administration’s imposition of tariffs on Canadian aluminum. The move was met with criticism from many in the Canadian business community, who argued that the tariffs would have negative effects on the economy and job creation.
In light of this, the Ontario government announced that it would be cancelling the Starlink Agreement in order to "protect the interests of Ontario taxpayers." However, in a surprise move, the government has now announced that it will be postponing the cancellation, pending further discussions with Xplornis and the federal government.
"We are committed to finding a solution that benefits all parties involved," said a spokesperson for the Ontario government. "We believe that this agreement has the potential to bring significant benefits to rural and remote areas of the province, and we will be working with Xplornis and the federal government to find a way to make it work despite the tariffs."
Industry insiders say that the postponement is a welcome relief, as it could potentially mean that the agreement is salvaged and the benefits of high-speed internet access can continue to be felt in rural Ontario.
"This is great news for the residents of rural Ontario," said a spokesperson for Xplornis. "We are committed to bringing fast and reliable internet to these areas, and we are willing to work with the government to make it happen. We appreciate the province’s willingness to listen to our concerns and find a solution that benefits all parties involved."
The announcement has been met with praise from many in the business community, who see it as a step in the right direction in maintaining good relations between Canada and the United States.
"This is a positive development, and I am relieved that the Ontario government has seen the importance of keeping the Starlink Agreement in place," said a spokesperson for the Canadian Chamber of Commerce. "We believe that trade agreements like this one are crucial for the growth and development of our economy, and we will continue to support any efforts to promote and preserve these agreements."
As the situation continues to unfold, one thing is clear: the future of the Starlink Agreement is far from certain, but one thing is certain – the province is committed to finding a solution that benefits all parties involved, and works to promote the growth and development of the economy.
