Premier’s all talk on trade deal
The premier appears to be celebrating the new interprovincial Canada Free Trade Agreement (CFTA) as it relates to the export of electricity from province to province and wants us to believe he has negotiated a guarantee that Newfoundland and Labrador can now wheel export power west from Labrador and into the rest of Canada unrestricted.
Nothing could be further from the truth.
Quebec’s non-adherence to the Canadian Constitution’s energy provisions has historically disadvantaged Newfoundland and Labrador since Confederation, by ensuring Quebec’s undue influence in any negotiations N.L. has with jurisdictions like Ontario, Manitoba, Nova Scotia and/ or the New England States in developing our hydro assets in Labrador.
In the House of Assembly on May 9, Premier Dwight Ball said: “What is unique to this particular agreement is something that we’ve not seen before — this came with national support from other provinces, Mr. Speaker — and that was a timeline that was put in place to work with the province of Quebec to put in place what would be a mechanism to transport power, wheel power, through Quebec.”
That sounds earth-shattering — until you realize it is nothing new. There is an agreement to talk about rules and a regulatory framework for electricity transport between N.L. and Quebec with any province, at the conclusion of two years invoking any exemptions to the agreement, including Quebec, and including energy.
The Constitution already provides for the transmission of electricity across provincial borders.
The premier’s alleged big gain is an agreement to talk. We’ve been talking to Quebec for decades.
While some progress was made in 2009 when an agreement was reached to wheel recall power from the Upper Churchill through Quebec to sell in the United States, this has not or does not indicate a relinquishment of Quebec’s leverage over N.L. in current or future hydro development.
Overcoming this control would play a significant role in any future Gull Island power project; however, Quebec has proven to be more of a barrier than a path to enhancing a national hydro energy corridor, including the trading of energy.
Talking changes nothing, based on past experience; nor does the new CFTA relative to the export of energy. And, unfortunately for this province, Quebec has not always dealt fairly on matters of electricity — as if we need reminding.
The reality of the Muskrat Falls project is that it opens up a route to transmit power to markets beyond Quebec without going through Quebec. It gives us options we never had before, and that strengthens our position at the table where talks are held — as does the year 2041. These, no doubt, are the reasons Quebec is interested in getting back to talking now, talks the premier and Nalcor’s CEO have said are not happening, even though Quebec’s Energy minister has said differently.
Talking is never a bad thing. But before any discussion with Quebec it should be clearly acknowledged by Quebec, that N.L. has an unequivocal ability to export power through their province irrespective of whether a project or sale of energy includes them or not. Any new CFTA should support this principle, as it supports and enshrines a national energy strategy, which is nondiscriminatory, as described in the Constitution.
But let’s not believe that a provision of the new interprovincial trade agreement is a breakthrough mechanism to bring our province guaranteed access to export power through Quebec if the intent of Newfoundland and Labrador is to do so. This principle should be enshrined in the CFTA as a fundamental principle for all Canadian provinces, with no exemptions — talking done!
A strong negotiator for Newfoundland and Labrador, and guaranteed access to export, that’s the real game changer we are waiting for. It will give us a real opportunity to tap into the growing appetite for the free trade of electricity in this country and the Eastern seaboard of the United States.
Quebec has proven for years it was willing to make accessing its power grid difficult in order to secure any terms for development favorable to Quebec. Any trade agreement must deal with this and have such leverage removed forever, for the benefit of all Canadians, including Newfoundlanders and Labradorians.
The premier’s alleged big gain is an agreement to talk. We’ve been talking to Quebec for decades.