Cory Morgan: Canada Should Think Twice Before Using Oil and Gas for Leverage in Trade War
Commentary As Canada’s trade war with the United States continues, more voices within and outside Alberta are proposing using Western Canada’s resources as leverage in trade negotiations. The federal government can impose export tariffs or even curtail oil and gas exports to pressure the USA. But using Alberta’s oil as a bargaining chip in a [...]
TL;DR
- Some suggest using Western Canada's resources as leverage in the ongoing trade war with the US.
- Potential actions include export tariffs or curtailing oil and gas exports.
- Using Alberta's oil as a bargaining chip is seen as economically risky and politically explosive.
- Canada has limited pricing power in such a scenario.
- The costs would primarily affect Canadian producers and consumers.
- The National Energy Program (NEP) is cited as a negative precedent.