Donald Trump is holding Canada hostage. Deliberately causing economic pain in a neighbouring country, is hardly what one would call statesmanship, or for that matter, an act of an ally. Canada has always entered into trade agreements with the intent of securing a fair deal between the partners that sees both achieve what could be considered an equitable outcome.
Now, Trump, the master of the zero-sum deal, wants only to secure America’s position at the expense of his neighbours. If that does lead to significant job losses in Canada, and a recession, then America should be made to feel the pain as well, as a result.
How? Simple.
First, Canada should shut down power transmission to the United States and watch the eastern seaboard of the U.S. go dark.
Second, Canada should shut off all fossil fuel deliveries to the United States. An immediate 4.7 million barrel shortfall of oil will have profound immediate impacts in the U.S.
Think, 1973 again.
Third, Canada should apply a 25% tariff across the board on all American imports.
Fourth, and the most painful application for the long-term trade war, — Canada should nationalize all Oil and Gas assets in Canada, exactly as Norway did in 1969.
A new Canadian National Energy Policy, structured to remove American influence in Canada’s energy market.
A Canadian national program to develop more pipelines leading to Canada’s ocean ports, east, west, and north.
A Canadian national program to create super refineries capable of refining all Canadian produced oil products for shipment overseas.
Americans need to understand that, short term gains will result in long term pain for America, and Americans.
And this action should not simply mean a return to being ripped off as usual once Trump decides to rescind his tariffs.
It’s time for Canadians to profit from Canada’s resources. Private, mostly American companies have had it all their way in Canada. That should end now, in response to Trump imposing tariffs on Canadian exports.
The shale oil bubble in the United States, created by fracking, will come to a sudden halt in the near future. American domestic oil production will drop like a stone. And when it does, Americans will be ill-equipped to deal with the transition to alternative sources of energy, particularly when it comes to electrical energy production.
As Martin Lukas stated ten years ago in the Guardian,
“Canada’s oil corporations have made a profitable mess of the country: It’s time to put them under public, democratic controls…creating non-profits owned by all levels of government or by co-operatives that millions of Canadians are already members of, committed to easing us off oil rather than selling every last drop. These entities wouldn’t be run by CEO’s accountable only to shareholders, or by bureaucrats accountable only to politicians: they wouldn’t involve diverse boards with elected representatives of workers, consumers, and First Nations…While oil companies have become the richest corporations in history (2014), both federal and provincial governments have settled for capturing single-digit rents and taxes.”
It is estimated, based on current consumption, that Canada has a 188 year supply of oil and gas. The United States? A mere 4.9 years of supply based on their current consumption. Turn off the pumps. And keep them off.
Canada for Canadians. Yes it will hurt jobs in Ontario, but those with a never-ending insatiable need for what Canada exports can pay what should become Canada’s Fixed Price.
Like Norway, Canada should husband its oil and gas and commit to end “Canada’s Resource Hostage Crisis”.
It will take time to adapt, and the costs of doing so in the short to medium term would hurt, but the long term benefits would mean that Canada would have a strategic oil reserve and could sell its resources to China, Japan, Korea and EU, in particular, as Canada has equally as much in common with the EU as it does with the U.S.
America is no friend. America is a threat, and should be treated as a threat. Friends don’t threaten friends, or they don’t stay friends for long. Breaking ranks with America, when America is becoming an international bully, isn’t a hard decision to make. Canada has a better educational standard, a higher level of education, great educational institutions and an amazing wealth of resources.
And so it is that Canada should relocate. The neighbours have become users and abusers, and Canadians should close their doors to them.
Canadians for Canada.
It has an awesome ring to it.
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