The U.S. and Canada reached a preliminary deal last month to modernize the Columbia River Treaty, a 60-year-old agreement that guides how the two countries manage one of North America’s largest rivers.

After six years of tough negotiations, it’s a significant milestone for both countries. And for Washington state. 

The Columbia River is integral to Washington's economy, providing clean hydropower, water for farmers, and an efficient and inexpensive way to move cargo. Washington state is poised to benefit from the updated treaty in multiple ways. 

The river generates a whopping 40% of the country's hydropower, irrigates $8 billion in crops and carries 42 million of cargo annually.

Under the tentative agreement, the U.S. would keep more hydropower produced by the Columbia River dams, helping Washington maintain its competitive advantage of low-cost electricity. Year after year, the state has some of the cheapest power in the country, according to the Competitiveness Redbook, an annual data-driven look at key measures of the state’s economic health. 

Having additional clean hydropower will continue to draw investment to the region. It’s served as the foundation of our manufacturing economy for decades and is one of the key reasons innovative new manufacturers – from EV battery makers to sustainable aviation fuel companies – continue to choose to locate in our state, bringing hundreds of jobs. 

Last month, we learned that 8 million residents now call Washington home. The demand for electricity will only continue to climb with a growing population. 

In June, the Association of Washington Business led a trade mission to Canada. Energy was a key topic – specifically how to ensure energy reliability while meeting clean energy targets. The treaty will advance both goals. 

John Hairston, head of the Bonneville Power Administration, said the agreement will give the U.S. almost 600 megawatts of additional power-generating capacity, which help meet future energy needs. One study by the Pacific Northwest Utilities Conference Committee estimates the Northwest is going to need 4,000 additional power generation to keep pace with demand the next five years.

The treaty also boosts transmission grid connectivity to help keep the lights on and mitigate extreme weather events. It provides flood risk management to protect communities downstream and ensures consistent river flows – important for electricity generation, shipping, agriculture and recreation. 

Importantly, the new treaty also takes steps to support healthy salmon populations. 

Washington’s congressional delegation, including both Democrats and Republicans, welcomed the preliminary agreement. The details still need to be worked out before the agreement is brought to the U.S. Senate for approval. 

It's encouraging that both sides struck a deal after years of difficult negotiations. It's a testament to our relationship with Canada, one of the U.S. and Washington’s top trading partners, and a reminder of the importance of the river that has helped define life in the Northwest.

Kris Johnson is president of the Association of Washington Business, the state’s chamber of commerce and manufacturers association.