Following former U.S. President Donald Trump’s re-election, former Finance Minister Bill Morneau says the Canadian government needs to reassess the timing of key Liberal policies, such as limiting emissions in the oil and gas sector, and better align policy. He said there is. Our southern neighbor and its new government.
“I question whether now is the right time to put a cap on emissions,” Morneau said in an interview aired on CTV’s Question Period on Sunday, adding that he would consider capping emissions “very carefully.” He added that he intended to do so. Broader North American relations. ”
Morneau, who led Canada’s financial portfolio through the renegotiation of free trade agreements during the previous Trump administration, said a lot has changed geopolitically since Trump’s first term.
“Energy security is going to be important,” he told host Vassy Kapelos, while also pointing to defense, technology and the economy as sectors to focus on.
“So we’re going to have to look at each of these and think about how we can meet our defense spending targets faster than the government is currently proposing. “We will need to think about whether to focus on energy security in a way that makes it a sector,” he added. “And that means we have to ask ourselves, ‘Is this really the right time to cap emissions?'”
Instead, he said the Canadian government should consider other ways to meet its climate goals.
Mr. Trump has made several campaign promises that will have significant ramifications for Canada. Specifically, it has pledged to impose flat tariffs on imported goods, restart the U.S. trilateral free trade agreement with Canada and Mexico, and launch a mass deportation operation, raising concerns about a population exodus to Canada. There is.
Morneau said the issues the Canadian government will “inevitably” face are “difficult policy choices” but “the right thing to put on the table.”
“It’s not just about having a great relationship, but it’s also about what we’re actually going to do to be a good partner for the United States,” he said.
Last December, the Canadian government announced a framework to limit oil and gas sector emissions to 35-38% below 2019 levels by 2030, using the country’s cap-and-trade system starting in 2026. Announced. The government released draft regulations earlier this month. .
Meanwhile, President Trump promised to increase U.S. fossil fuel production and drill more oil, saying “drill, baby, drill” in his speech at the Republican National Convention in July.
“We need to think about what kind of policy ideas and content we can actually consider in line with what the new president wants to focus on,” Morneau said. “We should be worried and we need to think about what we can do to improve our game and improve our results.”
Asked whether he thought the Liberals would have a hard time reconsidering basic policies such as emissions caps that are in line with their values, Morneau said: “Yes.”
“It’s going to be hard for them to take it back, but I don’t think they really have a choice,” Morneau said, pointing to President Trump’s strong mandate for winning not only the electoral vote but also the popular vote. .
Prime Minister Justin Trudeau on Wednesday congratulated Trump on his re-election this week and told reporters at Parliament House that he looked forward to working with the president-elect. But relations between the two countries were strained during President Trump’s first term, as were relations between the two leaders themselves.
Morneau’s interview on CTV’s Question Period was part of a panel discussion with former Conservative interim leader Rona Ambrose, who was a member of Canada’s bipartisan NAFTA advisory committee during the renegotiation of the trilateral agreement. It was.
Ambrose said he “absolutely” agrees with Morneau that the Canadian government needs to take a different approach to the new Trump administration, adding that if the Liberals’ fall economic statement (scheduled for later this month) If you have already written one, he added, “I would encourage you to rewrite it.” that. “
“There are two trains,” she said. “We have a tariff war coming from President Trump, where there is only so much we can control and, as Bill said, there are things we can put on the table and we will fight back hard and create our own We must retaliate with tariffs.”
“But the other thing that is within our control is our domestic economic policy,” she also noted the need to increase Canada’s competitiveness.
He added that President Trump plans to lower business tax rates and further deregulate sectors to make energy more affordable. Meanwhile, Canada is the only country in the world with an emissions cap, making energy more expensive. The Liberals also increased the tax rate for capital gains, which Ambrose called “lower productivity and lower investment.”
“We have to be more competitive and we’re not doing that here at home,” she said. “We have an opportunity to do that, and if we don’t do that, we will continue to be uncompetitive with the United States. So we have an opportunity to pivot.”
