Quotulatiousness

June 26, 2012

Sacrificing relations with your top trading partner for domestic political reasons

Filed under: Cancon, Economics, USA — Tags: , , , — Nicholas @ 07:59

In Foreign Affairs, Derek H. Burney and Fen Osler Hampson outline the sad state of the trading relationship between Canada and the United States:

Permitting the construction of the Keystone XL pipeline should have been an easy diplomatic and economic decision for U.S. President Barack Obama. The completed project would have shipped more than 700,000 barrels a day of Albertan oil to refineries in the Gulf Coast, generated tens of thousands of jobs for U.S. workers, and met the needs of refineries in Texas that are desperately seeking oil from Canada, a more reliable supplier than Venezuela or countries in the Middle East. The project posed little risk to the landscape it traversed. But instead of acting on economic logic, the Obama administration caved to environmental activists in November 2011, postponing until 2013 the decision on whether to allow the pipeline.

Obama’s choice marked a triumph of campaign posturing over pragmatism and diplomacy, and it brought U.S.-Canadian relations to their lowest point in decades. It was hardly the first time that the administration has fumbled issues with Ottawa. Although relations have been civil, they have rarely been productive. Whether on trade, the environment, or Canada’s shared contribution in places such as Afghanistan, time and again the United States has jilted its northern neighbor. If the pattern of neglect continues, Ottawa will get less interested in cooperating with Washington. Already, Canada has reacted by turning elsewhere — namely, toward Asia — for more reliable economic partners.

[. . .]

In Afghanistan, Canada is now rapidly scaling back its substantial commitment to the military mission, thanks to the United States’ increasingly erratic, if not embarrassing, direction. Canada has spent billions on the war and lost over 150 soldiers, proportionately more than any other ally, but has received no tangible dividend for its support on bilateral or multilateral issues of concern to it. Canada also participated in NATO’s mission in Libya — where a Canadian, Lieutenant-General Charles Bouchard, commanded military operations. Canada has no tangible interests of any kind in Afghanistan or Libya. Its participation in those countries, proportionately larger than any other ally, was intended primarily to strengthen the partnership with the United States on the theory that solid multilateral commitments would engender more productive bilateral relations. That proved not to be the case.

Update: Matt Gurney wonders if the palpable lack of reaction by Canadians to the laundry list of “slights” might possibly indicate that Canada is finally “growing up”:

You can’t say the essay is wrong. From Keystone XL to Buy America provisions in the stimulus packages developed by Congress, the U.S. has found occasion over the last few years to irritate Canada. But notably absent has been the kind of heated Canadian rhetoric you’d hear as recently as the Paul Martin era during the softwood lumber dispute. Nor does the Canadian public seem to be demonstrating much of the reflexive anti-Americanism that has always been a strange part of our national character.

We’ve long insisted that the U.S. treat us as a separate and sovereign country, and yet react with wounded outrage when they treat us as a separate country. Go figure. But given that Burney and his co-author are right, and America has repeatedly slighted Canada … and if we can agree that Canadians don’t seem particularly freaked out about it … good Lord, could it be that Canadians are, gulp, growing up?

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