Alberta has never been more alone
Trudeau scapegoats the province, just like his father
Facing the greatest economic threat since at least the 1970s, Prime Minister Justin Trudeau and his would-be successors are united once more in fending off the true enemy of the state: Alberta Premier Danielle Smith.
For nearly a decade, the Liberal government has worked to demonize Alberta’s energy industry. The parade of anti-resource policies out of Ottawa has been relentless: Cancelled pipelines, delayed projects, unconstitutional impact assessment rules, emissions caps, a de-facto embargo on exporting natural gas, the tanker ban, to say nothing of the carbon tax.
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But now, when facing Donald Trump’s threat of 25 per cent tariffs on all exports, Ottawa wants to use the very industry it has tried so hard to destroy, as a bargaining chip, as a sort of ace-in-the-hole. It has been likened to the queen in a game of chess.
The hypocrisy on display is outrageous.
Federal politicians and other premiers have publicly, and reportedly in private, floated the option of restricting, all or in part, the flow of oil and gas south to retaliate against American tariffs. Another option would be the use of an export tax, particularly if energy is exempt from Trump’s tariffs, which could have the effect of raising costs on Alberta producers, while padding Ottawa’s coffers.
Such an approach would be devastating for Alberta, which is being asked to sacrifice itself for the good of Ontario and Quebec jobs. No similar proposal is being considered for Ontario’s auto industry or Quebec’s aluminum industry. Nor, heaven forfend, is the cushy position of Canada’s supply managed dairy, poultry and egg farmers on the table.
If the oil and gas industry is subject to the same across the board tariff as everyone else, it will be painful, forcing companies to drastically reduce costs, or sell at a loss, but at least the integration with the American market could be maintained, until tariffs are lowered or dropped. If, however, Ottawa intervenes to prevent, one way or another, energy exports altogether, it could cause permanent damage to the industry, as American refineries seek alternate suppliers.
