Former Prime Minister Jean Chrétien says cabinet should consider an energy export tax to hit the US “where it really hurts” to combat “unjustified tariffs.”
Official estimates indicate Canadian energy accounts for 60% of crude oil, 85% of hydroelectricity and 99% of natural gas imported by the United States, according to Blacklock’s Reporter.
Ontario currently imposes its own 25% surcharge on hydroelectricity exported to Great Lakes ratepayers in Minnesota, Michigan and New York.
Chrétien, 91, made his remarks to a cheering crowd at the Liberal leadership convention, where Mark Carney was selected as the party's new leader, in Ottawa Sunday evening .
It was up to premiers to agree, he said, proposing a natural gas pipeline be built from Alberta to Quebec.
“With tariffs that are completely unjustified, governments have an absolute right in retaliating as they have and I congratulate all of them,” said Chretien.
“If it is necessary the governments altogether can consider going further and hitting the Americans where it really hurts, by imposing an export tax on oil, gas, potash, steel, aluminum and electricity.”
“We will use that money to build infrastructure that is needed in Canada, for example to build a pipeline for natural gas from Alberta to Québec.”
“If we do that, that will keep the steelworkers working in Canada for a long time. I could go on and on.”
“We have been friends and good neighbours with our southern neighbours but we must stand up for ourselves.”
The former prime minister noted he had attended Liberal leadership contests since 1958.
“Tariffs became a reality,” said Chretien.
“There will only be losers if you measure it in financial terms alone. But for Canadians it is more than that. It’s more than money that is at stake. We love our country and our independence. We love who we are because we are unique in the world.”
“We are going to be living in very difficult times but I am confident, I am very confident the next prime minister will work with the premiers, the leaders of all the political parties in the House of Commons and allies around the world to stand together to meet the challenges Mr. Trump is creating for the whole world.”