Key Takeaways:
- Canada’s fossil fuel lobby and its political allies have seized on Donald Trump’s return to promote new pipelines and expand oil and gas production.
- However, many voices are arguing that this approach is flawed and that Canada should instead focus on securing its sovereignty and reducing its dependence on the United States.
- A majority of Canadians (82%) support retaliatory tariffs against the US if Trump imposes a 25% tariff on Canadian goods and services.
- Experts argue that Canada should break free from its dependence on oil and focus on developing renewable energy sources.
- A strategic industrial and economic policy is needed to build Canadian wealth, data sovereignty, industrial capacity, scientific and technological excellence, natural resource leadership, and intellectual property.
Introduction to the Issue
The recent return of Donald Trump to the presidency has sparked a debate in Canada about the country’s energy policy and its relationship with the United States. While some, such as Alberta Premier Danielle Smith, see an opportunity for Canada to increase its oil and gas production and exports to the US, others argue that this approach is flawed and that Canada should instead focus on securing its sovereignty and reducing its dependence on the US. This article will explore the different perspectives on this issue and examine the potential consequences of Canada’s energy policy choices.
The Fossil Fuel Lobby’s Perspective
The fossil fuel lobby and its political allies in Canada have been quick to seize on Trump’s return to promote new pipelines and expand oil and gas production. Alberta Premier Danielle Smith has been a vocal supporter of this approach, arguing that it is an opportunity for Canada to increase its energy exports to the US and secure its economic interests. However, this perspective has been criticized by many, who argue that it prioritizes the interests of the oil and gas industry over those of other sectors and the environment.
Criticism of the Fossil Fuel Lobby’s Perspective
Critics of the fossil fuel lobby’s perspective argue that it is short-sighted and ignores the potential risks and consequences of increasing Canada’s dependence on the US. They point out that the US is an unreliable partner and that Canada should instead focus on developing its own energy security and reducing its dependence on fossil fuels. For example, Calgary Herald opinion writer Tara Klager argued that Smith’s position shows she would protect oil and gas at the expense of every other industry, including agriculture, mining, and tourism. Klager noted that these industries are also important to Alberta’s economy and would be affected by a 25% tariff on Canadian goods and services.
The End of Energy Interdependence
The concept of energy interdependence between Canada and the US has been a cornerstone of Canadian energy policy for decades. However, with the rise of Trump and his "America First" agenda, this concept is no longer tenable. Many analysts argue that Canada can no longer rely on the US as a reliable partner and that it must develop its own energy security and reduce its dependence on fossil fuels. For example, CBC senior reporter Evan Dyer wrote that the Canadian Association of Petroleum Producers’ website still references the now-obsolete notion that increasing interdependence with the US would make Canada safer. Dyer noted that this perspective ignores the fact that the US is no longer a reliable partner and that Canada must develop its own energy security.
Public Support for Retaliatory Tariffs
Despite the potential risks and consequences, a majority of Canadians (82%) support retaliatory tariffs against the US if Trump imposes a 25% tariff on Canadian goods and services. This sentiment is reflected in the comments of many Canadians, who are fed up with Trump’s aggressive trade policies and want to see Canada stand up for itself. For example, Quebec "snowbirds" have been selling their Florida properties and vowing to migrate back north, while others have been analyzing Trump’s claims that the US is subsidizing Canada and finding them to be laughable.
Breaking Free from Oil
The other line of argument is that this is the moment for Canada to break free from its dependence on oil and gas and develop renewable energy sources. Climate Emergency Unit Team Lead Seth Klein argued that fossil fuels are a poison, not only to the Earth but to democracy, and that Canada should rapidly make itself less dependent on oil and gas. Klein noted that this would require a significant shift in Canada’s energy policy and a willingness to invest in renewable energy sources. Social Capital Partners CEO Matthew Mendelsohn presented a vision of what this change might look like, including a strategic industrial and economic policy focused on building Canadian wealth, data sovereignty, industrial capacity, scientific and technological excellence, natural resource leadership, and intellectual property.
A New Economic Policy
Mendelsohn argued that Canada needs to start by recognizing that the US is no longer a reliable partner or friend and begin reorienting its economy accordingly. This would involve developing a strategic industrial and economic policy that prioritizes Canadian interests and reduces the country’s dependence on the US. Mendelsohn noted that this would require a significant shift in Canada’s economic policy and a willingness to invest in areas such as renewable energy, data sovereignty, and industrial capacity. For example, Canada could invest in developing its own renewable energy sources, such as wind and solar power, and reduce its dependence on fossil fuels. Canada could also develop its own industrial capacity, such as manufacturing and processing, and reduce its reliance on the US for these services.
Conclusion
In conclusion, the debate over Canada’s energy policy and its relationship with the US is complex and multifaceted. While some argue that Canada should prioritize its oil and gas industry and increase its exports to the US, others argue that this approach is flawed and that Canada should instead focus on securing its sovereignty and reducing its dependence on fossil fuels. As the situation continues to evolve, it is clear that Canada must develop a new economic policy that prioritizes its own interests and reduces its dependence on the US. This will require a significant shift in Canada’s energy policy and a willingness to invest in renewable energy sources and other areas that will drive economic growth and development in the future.