With the stroke of a pen, Quebec Premier Francois Legault pandered to anti-oil and gas groups..The premier pulled the carpet out from under investors who built relationships with indigenous governments, invested millions in licenses and agreements, and created jobs in Quebec. All at the invitation of the Quebec government.Some of these companies were Alberta-based and are now left with millions invested and nothing to see for it..This also caused Quebec based Utica Resources to sue the Quebec government for $18 billion in compensation for the loss..What could’ve been a strong example of interprovincial investment and cooperation has become a dire warning for any companies eyeing Canada..If even local Canadian companies cannot expect their contracts to be respected, what hope do foreign ones have? What’s worse is it's unclear the constitution or Canadian Free Trade Agreement (CFTA) protects investors when in Canada..We have agreements in place that would suggest so, but the prospects of lasting growth remain threatened by short-sighted politicians..Accords like the CFTA are intended to strengthen interprovincial commerce and offer a safety net to companies investing in other provinces. In theory, it’s a mutually beneficial agreement which should increase economic ties across Canada and create a stronger country..Instead of discouraging trade, the CFTA “promotes productivity and encourages investment in Canadian communities," but beyond the contract itself, these agreements are rooted in a vision for a united country which shares economic benefits. Companies should have the opportunity to invest in any community, regardless of their provincial headquarters — and we should encourage it for the betterment of all Canadians..Yet, increasingly populist policies and nationalist provincial governments threaten the future of interprovincial economic opportunity. Without thought for the impact of their decisions on their own voters, some provinces are willing to threaten investment to secure flashy headlines..Companies making multinational expansions are tasked with identifying political risks in targeted countries; unfriendly governments, conflict, or political instability to name a few. Canadian investors shouldn’t be afraid to invest in another province — but Quebec’s legislative flip-flopping has weakened its own reputation, and highlights the lack of investor protection in Canada..When Air Canada, a Montreal-based company, needed a new cargo facility, the City of Edmonton welcomed it with open arms. The city and province didn’t put up unfair barriers to their work or tear up their building permits. Alberta treats Quebec companies fairly..Each year, workers from across the country are invited to Alberta to participate in our energy sector — earning best-in-class wages they take home to their families in other provinces. We’re proud to call them our colleagues, and we support them — we don’t hold them back from opportunity..Alberta companies discovered natural gas in Quebec that could greatly reduce equalization. Now adding insult to injury, the Legault government wants to take that natural gas for next to free. Alberta is losing twice in spite of its long tack of record of being generous to Quebecers..Legault isn’t just tasked with addressing the impacts of his anti-investment ban on energy production, he has to restore his province’s reputation to investors who are now hesitant about investing in Quebec and Canada..Continuing down this reckless path won’t just lead to project cancellations or mild layoffs, it will set a damaging precedent which puts interprovincial trade and cooperation at risk..And without cooperation, we’re left to wonder about the future of our country’s economy. .Michael Binnion is the executive director of the Modern Miracle Network, whose mission it is to encourage Canadians to have reasoned conversations about energy issues.
With the stroke of a pen, Quebec Premier Francois Legault pandered to anti-oil and gas groups..The premier pulled the carpet out from under investors who built relationships with indigenous governments, invested millions in licenses and agreements, and created jobs in Quebec. All at the invitation of the Quebec government.Some of these companies were Alberta-based and are now left with millions invested and nothing to see for it..This also caused Quebec based Utica Resources to sue the Quebec government for $18 billion in compensation for the loss..What could’ve been a strong example of interprovincial investment and cooperation has become a dire warning for any companies eyeing Canada..If even local Canadian companies cannot expect their contracts to be respected, what hope do foreign ones have? What’s worse is it's unclear the constitution or Canadian Free Trade Agreement (CFTA) protects investors when in Canada..We have agreements in place that would suggest so, but the prospects of lasting growth remain threatened by short-sighted politicians..Accords like the CFTA are intended to strengthen interprovincial commerce and offer a safety net to companies investing in other provinces. In theory, it’s a mutually beneficial agreement which should increase economic ties across Canada and create a stronger country..Instead of discouraging trade, the CFTA “promotes productivity and encourages investment in Canadian communities," but beyond the contract itself, these agreements are rooted in a vision for a united country which shares economic benefits. Companies should have the opportunity to invest in any community, regardless of their provincial headquarters — and we should encourage it for the betterment of all Canadians..Yet, increasingly populist policies and nationalist provincial governments threaten the future of interprovincial economic opportunity. Without thought for the impact of their decisions on their own voters, some provinces are willing to threaten investment to secure flashy headlines..Companies making multinational expansions are tasked with identifying political risks in targeted countries; unfriendly governments, conflict, or political instability to name a few. Canadian investors shouldn’t be afraid to invest in another province — but Quebec’s legislative flip-flopping has weakened its own reputation, and highlights the lack of investor protection in Canada..When Air Canada, a Montreal-based company, needed a new cargo facility, the City of Edmonton welcomed it with open arms. The city and province didn’t put up unfair barriers to their work or tear up their building permits. Alberta treats Quebec companies fairly..Each year, workers from across the country are invited to Alberta to participate in our energy sector — earning best-in-class wages they take home to their families in other provinces. We’re proud to call them our colleagues, and we support them — we don’t hold them back from opportunity..Alberta companies discovered natural gas in Quebec that could greatly reduce equalization. Now adding insult to injury, the Legault government wants to take that natural gas for next to free. Alberta is losing twice in spite of its long tack of record of being generous to Quebecers..Legault isn’t just tasked with addressing the impacts of his anti-investment ban on energy production, he has to restore his province’s reputation to investors who are now hesitant about investing in Quebec and Canada..Continuing down this reckless path won’t just lead to project cancellations or mild layoffs, it will set a damaging precedent which puts interprovincial trade and cooperation at risk..And without cooperation, we’re left to wonder about the future of our country’s economy. .Michael Binnion is the executive director of the Modern Miracle Network, whose mission it is to encourage Canadians to have reasoned conversations about energy issues.
