While the President of the United States, Donald Trump, continues to speak prices On Canadian exports, its projects are criticized by certain industrial groups in the United States and Canada, which claim that changing the status quo would harm all those involved.
“Our two economies, especially in terms of energy, are highly integrated and highly effective,” said Mark Scholz, president and chief executive officer of the company. Canadian Association of Energy Entrepreneurs (Caoec).
He explained that trade in the past 50 years has created wealth and prosperity for both Canada and the United States and that any export rate, tax or ban on both sides of the border would harm the two countries.
“This is too much commercial relationship, too much jobs are at stake in Canada and the United States to hold this for granted.”
This week, Trump has renewed his commitment to include Canada in incoming customs prices of 25 percent. which is a tax imposed on goods or services Coming from another country-perhaps February 1.
Trump has also repeatedly said that the United States did not need oil, timber or manufacturing Canadian vehicles.
However, an American oil group now claims that customs duties would be detrimental to its industry.
The American Petroleum Institute sent a letter this week to the Officers of the Office of the American Representative to Trade (USTR).
In this document, the National Professional Association asked that crude oil and natural gas be exempt from the prices offered.
“The United States has a global advantage in the production and refining/manufacturing of oil and gas and is ready to increase this leadership. Customs prices on crude oil, natural gas or refined products would directly affect the affordability and availability of energy for consumers while eroding the competitiveness of the American oil and gas industry, both at the national level that international, ”indicates the letter addressed to the USTR.
“The oil and natural gas markets are global, with interconnections and cross -border trade throughout the value chain. In addition, the essential inputs of the supply chain (essential for extraction, transformation and refining) cannot come from the country in adequate quantities or according to the required specifications, which increases these risks.
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The American coalition of wood, on the other hand, argues Trump’s position, saying that the existing trade agreements with Canada are unfair. He says that since the production of American factories has increased so far, they are able to compensate for a drop in Canadian imports.
The Canadian Energy Entrepreneurs Association says it is too early to say what the Canadian economy prices might look like.
However, Scholz claims that Canada is disadvantaged due to the extent to which we are counting on the United States to buy our products.
“If we don’t take this as an alarm signal, Canada will be in great difficulty,” said Scholz.
“We essentially have a single customer for oil and gas: the United States. »»
About 95 to 97 percent of Canadian oil is shipped south of the border, which represents around 60 percent of American imported oil imports. This means that almost a quarter of oil consumed daily by America comes from the north of the border.
Experts said Canada’s commercial imbalance with the United States was largely from Canada energy exports.
“The reason why we are faced with this dilemma today and the reason why we have an option so limited with the prospect of customs tariffs is that we do not have a very good diversification of the markets. This is something on which Canada has to concentrate, “said Scholz.
He added that there are three main obstacles that prevent Canada from selling its products on other markets via the construction of new infrastructures such as pipelines leading to coastal waters.
“The Impact Assessment Act that was presented five years ago by the Liberal Government. We currently have a emission ceiling that will mainly reduce the possibility of increasing our energy production in Canada. And we have things like anti-Greenwashing legislation that limits our ability to communicate on the important role that our industry plays in environmental performance, “he said.
Scholz said that if Canada wants to avoid new situations like the one in which it is currently with Trump customs tariffs, such barriers should be deleted.
Amy Janzwood, professor at McGill University, is an expert in energy and environmental policy and has studied in detail the Northern Gateway pipeline, now disappeared. On Thursday, she told Global News, over the past decade, the economy and the landscape of such projects have radically changed.
This means that the main energy and pipelinières companies in Canada are not interested in building new pipelines due to commercial and regulatory challenges, she said.
“The number of obstacles to be crossed when building a new massive pipeline infrastructure as this is quite important,” she said, citing the regulatory process, environmental authorizations, the acquisition of land and public support.
“The construction of new energy infrastructure has a whole series of challenges. »»
Trump doubled his comments on Friday during a trip to North Carolina.
Trump on Friday, Trump once again said that Canada is expected to become an American state, adding: “It’s a bit crazy” to suggest that the United States needs Canadian imports.
Trump said he said earlier to Trudeau earlier than the United States subsidized Canada to the tune of billions of dollars, and said Trudeau had said that if these subsidies ceased, Canada would be “a bankrupt nation.”
The president insisted that Canada would have “better health coverage” and “would not have to worry about the military” as an American state, adding that Canada was “very mean to us in terms of trade “.
– With Canadian press files
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