Clark calls for ban on U.S. thermal coal
Proposed retaliation for lumber tariffs ‘the right thing to do,’ Liberal leader says
B.C. Liberal Leader Christy Clark retaliated against the United States on Wednesday for its penalties on Canadian softwood lumber by proposing a ban on U.S. thermal coal from B.C.’s ports.
Clark, acting as premier during the middle of an election, wrote to Prime Minister Justin Trudeau to encourage the ban. B.C.’s ports fall under federal responsibility, so it would ultimately be Ottawa’s decision, though Liberal officials insisted the province could enact some type of unspecified levy on coal shipments as well.
Clark said she’d been considering the move for some time, but didn’t want to propose it during softwood lumber negotiations because it might antagonize the Americans.
“We had an obligation to be good trading partners with our trading partners in the United States,” she told reporters at a Catalyst Paper mill in Surrey.
“They are no longer good trading partners with Canada. So that means we’re free to ban filthy thermal coal from B.C. ports, and I hope the federal government will support us in doing that.”
U.S. President Donald Trump’s administration levied the tariffs on Canadian softwood lumber on Tuesday, sparking worries that it would decimate B.C.’s forest industry and forest-dependent communities.
“We’ve been working on the softwood deal for four years and working really hard on it,” said Clark.
“I didn’t want to upset the negotiating table by introducing something that would make the Americans unhappy. But now that negotiations have reached a stalemate and there’s no further talks planned at the moment, the Americans have slapped a 20-percent duty, the (U.S.) president is calling Canada a disgrace, they want to pull out of NAFTA — we are free to do this.
“And, for most people, it’s absolutely the right thing to do.”
Prime Minister Justin Trudeau’s office issued a brief statement that did not tip its hand on the issue.
“We consider carefully and seriously any request from a premier,” said press secretary Cameron Ahmad.
Clark said the American thermal coal is shipped through B.C. ports on its way to customers in Asia, and that by banning it there would be a net benefit to the environment because it would not be burned for energy and that would lead to less air pollution. She also claimed it would free up port capacity for cleaner B.C. metallurgical coal, and potentially create jobs, though it was not immediately clear if that would occur.
Shipments from B.C.’s key ports declined last year, in part because of a drop in thermal coal exports from the U.S. through sites like the Port of Vancouver.
However, Clark’s letter to Trudeau argued that for years exports of thermal coal through B.C. have been increasing over the long term due to a shortage of U.S. port capacity. In 2016, 6.2 million tonnes of U.S. thermal coal was exported through the Port of Vancouver, she wrote. Clark argued a ban is “in line with the values of Canada and the Cascadia region,” including U.S. states like Oregon, Washington and California, which have also moved away from thermal coal.
Clark said she did not think the move would affect expansion plans at any B.C. ports.
B.C. mines do produce different types of coal, but as of 2016 there were no active sites producing thermal coal in the province.
Coal is B.C.’s largest single export commodity, but the vast majority of it — 70 to 90 per cent — is metallurgical coal used to make steel, according to the Ministry of Energy and Mines.
“Because British Columbia has no coal-fired electrical plants, and produces mainly metallurgical coal for export, it is not markedly affected by changes in the domestic thermal coal market,” according to a recent industry overview by the ministry.
In 2016, the value of coal production for B.C. was forecast at $3.32 billion, up nine per cent from 2015, the report said.
Delta-Based Westshore Terminals is Canada’s largest coal export terminal. A company spokesperson was not available for comment Wednesday.
A move to ban coal shipments could have federal electoral consequences, as well as consequences in the B.C. election. The B.C. Liberals and NDP are in a close fight for Delta North, and the riding of Delta South is up for grabs with the retirement of independent incumbent Vicki Huntington.
A permit for a new coal terminal near Bellingham, Wash., was rejected by the U.S. government last May out of concern it would negatively impact the Lummi Nation’s fishing rights.
A spokeswoman for the Coal Association of Canada said the association was reserving comment until after the federal government had a chance to respond to Clark’s letter.
Clark’s announcement comes in the middle of the B.C. election campaign, set for May 9.
B.C. Green Leader Andrew Weaver said he supports the move but noted he tried to amend the government’s throne speech three years ago to include language about stopping the expansion of thermal coal ports and it was voted down by the NDP and Liberals.
“I’m glad to hear the premier is finally calling for a halt to the expansion of thermal coal exports,” said Weaver in a statement. “This move is long overdue.”
Weaver also said he hoped it was not political posturing during the election, and that Clark had carefully co-ordinated the move with Ottawa.
NDP Leader John Horgan reiterated to reporters Wednesday morning he’d visit Washington, D.C., within 30 days of an election victory to try to broker a deal on softwood.
“I will consider every tool at our disposal, including raw logs, energy and U.S. thermal coal in these negotiations,” he said. “And within 30 days of being elected, I’ll go to Washington to stand up for the thousands of British Columbians who depend on these jobs.”