Kenney wants sanctions over Keystone action
PREMIER BLASTS BIDEN OVER CANCELLATION OF PIPELINE
Alberta Premier Jason Kenney is calling for the federal government to impose economic sanctions against the United States in response to newly inaugurated U.S. President Joe Biden's “gut punch” decision to tear up the permit for the Keystone XL oil pipeline expansion.
“As friends and allies of the United States, we are deeply disturbed that one of President Biden's first actions in office has been to rescind the presidential permit for the Keystone XL pipeline border crossing. This is a gut punch for the Canadian and Alberta economies,” Kenney said at a news conference late Wednesday.
“Sadly, it is an insult directed at the United States' most important ally and trading partner on Day 1 of a new administration.”
Kenney said he was upset the U.S. wouldn't consult with Canada first before acting but saved his strongest criticisms for federal Liberals, whose statements in response to Biden's actions Kenny characterized as too accepting.
“If the U.S. government refuses to open the door to a constructive and respectful dialogue about these issues, then it is clear that the government of Canada must impose meaningful trade and economic sanctions in response to defend our country's economic interests,” he said.
The lack of a strong response sets a precedent that could allow other members of Biden's government to call for other “retroactive” permit revocations for existing pipelines, Kenney said. Part of Keystone XL has been built but it is not complete, nor is it operating.
Prime Minister Justin Trudeau expressed disappointment at the news on Wednesday.
“While we welcome the president's commitment to fight climate change, we are disappointed but acknowledge the president's decision to fulfil his election campaign promise on Keystone XL,” he said in a brief statement that outlined previous efforts to make a case for the project to the incoming administration.
Biden’s first phone call with a foreign leader will be with Trudeau, White House press secretary Jen Psaki said Wednesday, noting that she expected the Keystone decision would be among matters under discussion.
Earlier in the day, TC Energy said Biden’s action overturns extensive regulatory reviews that found the pipeline would transport needed energy in an environmentally responsible way and bolster North American energy security.
The Calgary-based company also warned the move would lead to the layoffs of thousands of union workers and comes despite the company’s commitments to use renewable energy to power the pipeline and forge equity partnerships with Indigenous communities.
The Biden decision was condemned by the Canadian Association of Petroleum Producers.
“This action is killing thousands of Canadian and American jobs at a time when both economies badly need private investment,” said CEO Tim McMillan in a statement.
Meanwhile, environmental groups applauded Biden’s move.
“Killing the Keystone XL pipeline once and for all is a clear indication that climate action is a priority for the White House,” said Dale Marshall, national climate program manager for Canada’s Environmental Defence.
“We should take heed when the biggest customer for Canada’s oil kills a pipeline that is already under construction. The Keystone XL pipeline never made sense for either the U.S. or Canada.”
Saskatchewan Premier Scott Moe said it’s “incredibly troubling” that TC Energy has suspended work on Keystone XL. Federal Conservative Leader Erin O’Toole called the cancellation of the permit “devastating.”
“We need to get as many people back to work, in every part of Canada, in every sector, as quickly as possible. The loss of this important project only makes that harder,” O’Toole said.
The Business Council of Canada and the Progressive Contractors Association of Canada said in news releases they are disappointed.
“Pulling the plug on a major project, hours after taking office, is a rocky starting point for resetting Canada/U.S. relations,” said PCAC president Paul de Jong.
The association, whose member companies employ thousands of Alberta and B.C. construction workers, said the pipeline would have generated as many as 60,000 direct and indirect jobs in Canada and the United States. Kenney has said the province has about $1 billion at risk if the project is killed.