“Fears of a damaging trade war”
The Americans are going to start a study to see if Canada subsidizes its ports – with particular reference to Prince Rupert. Oh goody, I just happen to have a recent picture of that
I added the comment
Container ships to Prince Rupert from the Asian Pacific rim save two days sailing over Vancouver. And the CN line from PR to Chicago is easier too. But BC is still spending billions on its misguided Gateway programme.
In fact Canada has its own federally funded programme of Pacific port expansion (this is a 2007 report which popped up near the top of my Google search). And of course this blog has been warning for some time that any program that is designed to win more business from the United States will, inevitably, attract their attention. And when times get tough the instincts of American politicians are always towards protectionism. Indeed just look at almost any of the earlier posts in the same categories as this one and you will see that this response was indeed predicted.
Whether or not the rules say that governments in Canada are allowed to invest in ports, or in improving access to ports (something the Americans have been doing for years too) does not matter. Anyone who followed the softwood lumber saga – which continues to this day over how we deal with beetle damaged timber – understands that it is what appeals to American voters that matters, not what the agreements on “free trade” might include.
Basically, as Pierre Trudeau observed, when you sleep next to an elephant…
Their view of “free trade” is that they want our resources, especially the oil gas and water. They also want untrammelled access to our markets. But if we want to be treated as equals in an open trading relationship, that is only a matter of what is currently acceptable. Speeches and smiles when the documents are signed – but lots of harrumphing and threats if the deal turns out to favour us in any significant way.
Our current political leadership at both federal and provincial levels has been embarrassingly eager to adopt the role of America’s little brother – not noticing that the Americans themselves always add the word “annoying” to the front of that appellation. The economic viability of the programs to expand our ports and the transportation networks that connect to them was never very strong. After all, just handling containers and passing them along adds very little value. The employment (after the construction phase) is quite small when viewed as a cost per job given the billions spent. And the jobs themselves are not exactly what we need either. The whole traffic of consumer goods from Asia to North America, funded by dubious financial instruments and a huge trade deficit, is clearly not sustainable. The environmental impact has been, generally, ignored by government.
It is, after all, only a study. But given the reaction already, the penny seems to have dropped, finally, that the people who have been pushing the Gateway and port expansion have really not been especially forthright. And that we could indeed be stuck with some more white elephants. The money is largely spent – and the benefits have not been very much and could evaporate. Just as BC’s lumber processing industry has shrunk to a shadow of its former self, not least because of the pressure of the US softwood lumber producers.
Fortunately, the construction of the additional container berths at Roberts Bank has not yet started. It is not too late to cancel them – but we are stuck with the SFPR and the widened Highway #1.