Pierre Poilievre’s Energy Pitch to Trump: A "Great Deal" for Both Countries?
In a bid to address the trade surplus and energy exports between Canada and the United States, Pierre Poilievre, leader of the Conservative Party, has made an audacious pitch to US President Joe Biden. According to Poilievre, increasing Canadian energy exports to the US would not only benefit both countries but also help alleviate US concerns about border trafficking and military spending.
The Current Situation: A Trade Surplus with a Twist
Canada’s trade surplus with the US is largely driven by the sale of commodities such as oil, gas, and other energy resources. While this may seem like a straightforward case of Canada exporting its natural wealth to the US, Poilievre argues that there’s more to it than meets the eye. With few alternatives for export, most of Canada’s fuel ends up in the US, resulting in a trade surplus that benefits both countries.
However, this surplus is not without its drawbacks. The discount on Canadian energy exports to the US is significant, and Poilievre believes that Trump has reason to be annoyed with these deficits, particularly when it comes to China and Mexico. From a mercantilist point of view, these trade gaps siphon away American jobs.
Poilievre’s Solution: A "Great Deal" for Both Countries
Poilievre proposes that Trump approve the Keystone pipeline project, which would transport oil from Alberta’s oilsands to southeast Nebraska. This, he argues, would not only benefit both countries but also help alleviate US concerns about border trafficking and military spending.
By ramping up extraction of resources such as critical minerals, Poilievre believes that both countries can get richer while weaning themselves off supplies from unfriendly states like China. He’s even held talks with the conservative leaders of hydrocarbon-rich provinces Alberta and Saskatchewan to expedite resource project approvals.
Addressing US Concerns: A Conservative Government’s Plan
Poilievre has a plan to address US concerns about border trafficking and military spending. A Conservative government, he claims, would invest the gains from his energy-exporting strategy in Arctic security. Trump has long complained that the US is being shortchanged by allies, and Canada is currently far short of the North Atlantic Treaty Organization goal to spend two percent of gross domestic product on defense.
"I can fund a more robust military and continental defence if I have more free trade with the greatest economy the world has ever seen — and we can both win," Poilievre said in an interview.
The Response: A "Great Deal" or a "Lost Opportunity"?
While Poilievre’s pitch has been met with skepticism by some, others see it as a genuine attempt to address the complex issues surrounding Canada-US trade. With Trump already having revoked a key permit for the Keystone XL project and showing no signs of reviving it, Poilievre’s proposal may be seen as a last-ditch effort to save a long-stalled pipeline project.
As the debate continues, one thing is certain: Poilievre’s "great deal" has sparked a lively discussion about Canada-US trade and energy exports. Whether or not Trump will take him up on his offer remains to be seen, but one thing is clear – Pierre Poilievre is willing to take risks to make a deal that benefits both countries.
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