A big, bad oil project has become the face of Canada-United States trade relations.
The Keystone XL Pipeline is now synonymous with back-and-forth bargaining, lobbying and even pleading from the Harper government to the Obama administration to officially approve the pipeline.
The project is important not only for transporting oil, but also for continued good trade relations between Canada and the United States.
The Conservative government is leaning heavily on the Obama administration to grant the presidential permit needed to cross the border.
In January, subway commuters in Washington were bombarded with giant Government of Canada ads touting the benefits of doing business with northern neighbours. The advertisements call Canada “America’s best energy partner” and call us “a secure and environmentally responsible neighbor that is committed to North American energy independence.”
More recently, Canada’s ambassador to the United States penned a letter extolling the benefits of the project yet again. Canada used its commitment to reducing greenhouse gases, the need for energy security and the economic benefits were the reasons to justify the bid for bitumen transportation.
The Conservative government seems to think it can rely on the pre-existing special relationship with the United States to push this project through. While it is true that Canada and the United States enjoy friendly trade, it is quickly becoming evident that sunny relations between the two countries will not be enough to convince Obama to approve the Keystone XL Pipeline.
Everyone seems to know the project’s name, particularly as the clock keeps ticking on Obama’s final decision.
Environmentalists, economists and oilers are all clamouring to have their opinion heard as the clock counts down to the decision date.
One of the main arguments is that oil from Canada is far preferable than the alternative, which is the continued reliance on foreign imports. Supporters of the pipeline say Canada has the best interests of the United States at heart, unlike some countries in the Middle East.
Safety is naturally an oft-repeated benefit in the aftermath of the Lac-Mégantic rail disaster. The risk of spills seems more favourable than the chance of more railway crashes.
There has been consistent and considerable debate over the economic value and safety of the Keystone XL pipeline.
It has been a hotbed of political and environmental controversy for groups on both sides of the border.
Despite the recent U.S. State Department environmental report that found the pipeline does not pose an increase in greenhouse gas emissions, the American government is still dragging its feet. However, there’s only so much Canada can do to promote the project without nagging or appearing desperate.
Canada’s promotional efforts have been more than sufficient to tell the United States that we are in favour of the pipeline. However, the government cannot expect it to be approved based on national friendship alone.
If Obama nixes the pipeline, he will send the message that Canadian products and trade are not appreciated.
Despite fears and political stalling, the fact remains the pipeline is necessary because we have created an economy that cannot function effectively or efficiently without its construction.
But it’s not just about oil, it’s about continued good trade relations.