Much of the focus since U.S. President Donald Trump’s inauguration has been directed at our country’s response to his threats of a 25 per cent tariff on all Canadian exports to the U.S.
The February 1st deadline for implementing the tariffs was averted – for now. (Trump has since announced 25 per cent tariffs on Canadian aluminum and steel would take effect March 12).
In the meantime, there is a lot of talk about how Canada can weather a trade war with the unpredictable economic behemoth south of us.
Should we lower inter-provincial trade barriers? Yes, and experts say this long-awaited move will help immensely.
The “Buy Canadian, Buy Local” campaign is being embraced by many Canadians and has both economic and climate benefits. Buying locally supports our communities, local farmers, and reduces the need to transport commodities long distances thereby lowering carbon emissions. But several voices are speaking up and suggesting other approaches to address the tariffs while simultaneously dealing with the climate crisis. One tactic is to leverage Canada’s exports of oil and gas.
Seth Klein states in a recent op-ed, “Trump’s decision to offer special treatment for Canada’s oil and gas exports is a tell; he’s signalling where he is vulnerable, and who has his ear.” Klein suggests that Canada could impose a 15 per cent export tax on the U.S. for our oil, in addition to the 10 per cent tariff. This would increase U.S. gas prices and exert pressure on Trump to rescind tariffs. On this side of the border, Klein is suggesting other benefits including use of those revenues to support a transition away from fossil fuels here in Canada. Revenues would be used to bolster renewable energy projects and infrastructure, as well as providing employment for displaced workers as oil and gas are phased out.
The fossil fuel industry and some politicians are promoting diversification and expansion of our oil and gas exports, including expansion of pipelines within Canada. This would take years to accomplish, intensify our carbon emissions and undermine efforts to address the growing climate crisis.
In a recent op-ed, Dr. Laurie Adkin, professor of political science at the University of Alberta, proposes a more measured approach that offers climate solutions at its core. She states, “The obvious first step in reducing our extraction of fossil fuels is to phase out exports, maintaining a domestic supply only so long as necessary to build the alternative energy infrastructure.”
The tariff crisis could be just the opportunity Canadians need to address the climate crisis. Klein, Adkin and others agree; the benefits of moving to a low-carbon economy include a better quality of life, and a sustainable economic future that would provide transitioning oil and gas workers good paying jobs.
As Adkin puts it, “The climate-transformed world is not just coming; it is here. It is time for Canadians to decide whether our primary battle at this moment should be to protect oil and gas exports to the U.S., or to build a future in which we and our descendants can survive and flourish.”
The choice is a critical one at a time when the increasingly severe impacts of a warming globe mean we have no time to lose. In the meantime, let’s all buy Canadian and buy local!
Julia Beatty is chair of the Shuswap Climate Action Society
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