The premiers of Nova Scotia and Alberta are asking Ottawa to green-light the long-stalled Energy East oil pipeline project, saying it’s a tool in the country’s arsenal to deal with U.S. President Donald Trump’s tariff threats.
Nova Scotia Premier Tim Houston said Trump’s vow to impose 25 percent tariffs on Canadian goods has created the necessary “urgency” for Canada to take advantage of its natural resources through initiatives like Energy East.
The 4,600-kilometre pipeline was first proposed in 2013. It was intended to convey crude oil from Alberta through six provinces to an export terminal situated in Saint John, N.B. The project was cancelled by TC Energy in 2017 amid a decline in global oil prices since 2014 and at a time when the National Energy Board expanded the scope of the environmental review.
Houston told Prime Minister Justin Trudeau during a recent meeting with the other premiers that now is the time to get the project up and running.
“If we needed more urgency to strengthen our country, we got it, right?” he said during a Jan. 23 press conference, referring to the potential U.S. tariffs.
“The United States is a huge market, and it’s been a convenient customer, but now is the time to … look for diversification, not only across our country, but around the world.”
The construction of the pipeline and the diversification of Canada’s resource base would serve two purposes, Houston said. It would send a strong message to the United States while also giving Canada more options globally.
“A project like the Energy East would move resources from the west to the east, and then onto Europe,” he said. “It will open up incredible opportunities for our country.”
Houston said his idea elicited support from a number of premiers during their recent meeting with the prime minister.
Alberta Premier Danielle Smith posted a clip of Houston’s comments to her social media accounts on Jan. 23, expressing her support.
“It’s time for Team Canada to get serious about our domestic energy security, nation building, and growing our economy,” she wrote. “I join Premier Tim Houston on his request to immediately approve the Energy East pipeline.”
Smith said earlier this week that the oil industry is “dusting off proposals” for pipelines as a potential measure to address the looming threat of 25 percent tariffs on Alberta’s oil exports to the United States.
“If we want to stop being so reliant on a single trading partner, we’ve got to take down internal trade barriers between Canadian provinces, start looking at how we can do major nation-building projects to our east and west coast,” she told reporters on Jan. 21. “Why wouldn’t we talk about Energy East?”
Diplomacy or Retaliation?
Trump originally indicated he would levy the tax on the country’s products beginning Jan. 20, his first day in office. He has since said he is considering Feb. 1 as a start date for the tariffs against Canada and Mexico unless the countries tighten border security.Trudeau has suggested Ottawa would retaliate with “dollar-for-dollar matching tariffs” if the United States moves ahead with levies against Canada.
“As I’ve said, everything is on the table,” he said during a Jan. 21 press conference. “It’s something that we absolutely are going to be looking at if that is how they move forward.”
Smith has been vocal about finding a more diplomatic approach, insisting a deal can be made that would be “win-win” for both countries.
The premiers signed a joint statement with Trudeau last week, calling for every possible countermeasure to be on the table to push back against tariffs.
Smith declined to sign, saying she wants to focus on diplomacy rather than retaliation. To that end, Smith was in Washington, D.C., earlier this week to discuss potential solutions with her American counterparts.
Ontario Premier Doug Ford will lead a group of premiers on a similar trip next month.
Ford has argued that his province and Canada as a whole need to respond in kind if Trump follows through on tariffs.
