Canada Threatens EU With Trade War Over Oilsands
Just prior to a vote in Brussels, the Canadian government promises to fight back if the Ablerta oilsands are labelled as ‘highly polluting.’
Canada’s federal government is adding fuel to the flames of their ongoing battle with the European Union this week.
The EU plans to tack a higher carbon-emissions value onto oil derived from Alberta’s oilsands in a vote in Brussels on Feb. 23, labelling them as “highly polluting.”
To no one’s surprise, Canada fought back. Our minister to the EU David Plunkett warned the European commissioner for climate action that Canada would do what is necessary to protect its interests, including taking the matter to the World Trade Organization.
While most of the oilsands bitumen is exported south of the border to the U.S. with little to none going to Europe, the feds worry such a label would establish a precedent and sully their global reputation.
And, as more foreign companies buy interest in the oilsands, the feds won’t likely take any chance that one of the country’s economic powerhouses could be hindered in any global expansion.
The oilsands in and around Fort McMurray, Alta., are the largest proven oil reserves outside of Saudi Arabia.
The higher carbon emissions value would be another setback in oilsands expansion plans. Last month, U.S. President Barack Obama also rejected the proposed Keystone XL pipeline, which would carry sweet crude from Alberta to refineries in Texas.
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