And yet again another USA vs Canada dispute.
I find it uncomfortable to read it again of yet another clash with our neighbour to the south and best customer. Here is an illustration of some of the recent initiatives that that have given rise to the sense of discomfort,
First. We’re coming to the end of the 17th extension of the Canada-USA border closure. Extension is scheduled to end October 21st, for Canadians who want to go to the USA. Canadians have been able to enter the USA by plane whether they are vaccinated or not. Canada in its wisdom permits on the other hand Americans to enter Canada by land or by plane if they are fully vaccinated.
Second. The Biden administration actually “canceled” the TransCanada Keystone XL pipeline for the second time. Back in 2015 the project was “canceled” the first time when the Presidential Permit was denied by the Obama Administration (recall Pres. Biden was the VP).
President Biden’s rationale explain this current action was that it would not be in the national interests of the United States; and further that US climate leadership should take priority.
The outcomes of this decision are clear… Higher gas prices, control of oil as an economic weapon passed to OPEC and Russia; and approval by the Biden administration of the Russian gas pipeline to Europe to go ahead.
The dependency of Europeans and in particular Germany (LINK) Europeans brace for hard winter as energy price surge hits households | Business | Economy and finance news from a German perspective | DW | 21.09.2021 for energy on Russia certainly weakens any stance NATO and Europeans might wish to take during the colder months ahead.
The action also significant impacted Alberta and Canada as a nation. Clearly not ‘Free Trade’ when nations notwithstanding having treaties in place use administrate regulations to circumnavigate their undertakings.. .
Third. The U.S. Commerce Department to double preliminary tariffs on softwood lumber (LINK) Canada–United States softwood lumber dispute – Wikipedia imports from Canada. Another economic blow particularly to British Columbia and eastern provinces.
Fourth. And now a threat of shutdown of a vital petroleum pipeline for Canada…. If you have the time and interest- read this article.
“The Canadian government is invoking a 1977 treaty with the United States to formally commence government-to-government negotiations over the fate of Line 5, a vital petroleum pipeline for Canada that faces a threat of shutdown from the State of Michigan.
The move follows a breakdown in court-ordered mediation talks last month between Enbridge Inc. and Michigan, where Governor Gretchen Whitmer last fall ordered Line 5 to cease shipping petroleum across the state’s Straits of Mackinac waterway, citing the risk of oil spills.
Gordon Giffin, a former U.S. ambassador to Canada, who is now acting as legal counsel for the Canadian government, informed a federal U.S. judge in Michigan Monday by letter that Canada has formally invoked Article 9 of the 1977 Pipeline Transit Treaty “through diplomatic channels” to request negotiations.
This represents an escalation of this dispute between Canada and the United States, one where U.S. President Joe Biden’s administration has been reluctant to intervene. Last May, U.S. Secretary of Energy Jennifer Granholm told reporters the White House had no plans to get involved, saying it would be up to the courts to settle.
“The Biden administration will not be able to duck this issue any longer,” Toronto international trade lawyer Lawrence Herman said.
The 1977 Pipeline Transit treaty was designed was designed to ensure uninterrupted transmission of petroleum between the two countries. The treaty says the only justifications for impeding the flow are natural disasters or emergencies – and these may only be temporary interruptions.
If formal negotiations between Canada and the United States fail to resolve the matter, Canada has the right under the treaty to escalate matters further by requesting binding arbitration.
The matter has been in the hands of a federal U.S court for many months, where an American judge had urged the two sides to try to solve it themselves. Enbridge has proposed rerouting the Mackinac crossing underground to reduce the risk of environmental damage from future spills.
But in September, the state of Michigan informed the court it saw no further use for mediation talks with Enbridge.
Enbridge Line 5 (LINK) Brochure_Line5.pdf (enbridge.com)is a vital energy link for Ontario and Quebec that runs through the Great Lakes region. It carries up to 540,000 barrels a day from Alberta and Saskatchewan through two Great Lakes states before re-entering Canada at Sarnia, Ont.
In November 2020, Ms. Whitmer revoked an easement permit first granted in 1953 that allows Line 5 to cross the Straits of Mackinac, calling the pipeline a “ticking time bomb.”
She gave Enbridge until May 12, 2021 to comply, and warned the company it would be breaking the law after that.
But Calgary-based Enbridge (LINK) enbridge stock – Bing challenged this shutdown in U.S. federal court, arguing that only the federal government can pass judgment on the safety of a pipeline.
Toronto-based trade lawyer Mark Warner says he’s not sure that state-to-state arbitration will resolve the matter in Canada’s favour. He pointed to Article 4 of the 1977 treaty, which says “appropriate governmental authorities” will still have the power to make decisions affecting the pipeline for the sake of “environmental protection” and “pipeline safety.”
Enbridge says Line 5 has never leaked into the Straits of Mackinac, but critics say it has leaked elsewhere along the route.
They also point to 2010, when another pipeline operated by Enbridge, Line 6B, ruptured and released 3.3 million litres of oil into a tributary of the Kalamazoo River.
That became one of the largest inland oil spills in U.S. history and took five years to clean up”.
We need to improve our relationship with our American cousin’s by rebuild what we had 50 years ago– a partnering approach rather than master servant… Comments?
