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.
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. As the former Alberta MLA turned-news-publisher Derek Fildebrandt put it, “It’s incredible how quickly ‘dirty Alberta oil’ became ‘Canadian energy.’”
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.
It is almost as if there is an unwritten rule that every time a Trudeau is in power, they must exact an export tax on, or otherwise control the sale of, oil and gas, and if the Alberta premier of the time objects, they are to be branded a traitor.
In the 1970s, Pierre Trudeau used an export tax to raise revenues to help Central Canada purchase foreign oil. While in the 1980s, he used it as part of a suite of destructive policies, known as the National Energy Program, to keep gas prices low for Ontarians and Quebecers.
Just as former Alberta premier Peter Lougheed was disparaged as a “blue-eyed sheik” working against Canadian interests, so is Smith being attacked.
When she refused to sign off on an otherwise bland joint statement between the prime minister and the other premiers about “the Canada-United States relationship,” because both an export tax and restricting the flow of energy south remain options, Liberals wasted no time in trying to portray the Alberta premier as a greater threat to the country’s economy than Trump.
In response, Trudeau said Thursday that while premiers should advocate for their industries, ultimately, “they should also put their country first as every single premier except Danielle Smith did.”
As is typical of Trudeau, he is completely blind to how his policies and treatment of Alberta threaten national unity. Again, only Alberta’s main industry, as far as we know, is being considered for export controls in a possible trade war with the Americans.
Former finance minister and soon to be Liberal leadership candidate Chrystia Freeland similarly portrayed Smith as some kind of internal threat, asking Conservative leader Pierre Poilievre, “are you going to stand up for Canada, or stand with Danielle Smith?”
For his part, former Bank of Canada governor Mark Carney, when announcing his leadership bid, in Edmonton no less, openly mocked Smith as someone who shouldn’t be anywhere near Canada-U.S. negotiations.
Both Carney and Freeland have tried to use the fact they grew up in Alberta as a sort of excuse to attack their home province, but few politicians represent the Laurentian Elite more than these two globe-trotting aristocrats.
The insular, and predictably left-wing Toronto-Ottawa media have dutifully presented Smith as the traitor the Liberals claim she is. Because the Alberta premier met with Trump to advocate for the energy industry, one particularly overheated journalist wrote on social medial, “Canadian officials should be careful about sharing information with Smith.”
The scapegoating of Alberta is a clear threat to Canadian unity.
As for Ontario Premier Doug Ford, his leadership since Trump first started talking tariffs has been admirable, but he should support Smith in her pushback against Ottawa.
The federal Liberals would appear to be of the mind that retaliatory tariffs against U.S. goods being imported into Canada would not be enough to put pressure on the Americans, hence the temptation to go further and restrict or tax exports of oil and gas. The idea should be dismissed out of hand, for the good of all Canadians.
National Post