Sask., Alta. and Ont. sign trade deal, eye Arctic port revival
In the spirit of strengthening domestic trade, the provinces of Saskatchewan, Alberta, and Ontario have signed a memorandum of understanding on how to handle the safe transportation and export of oil, natural gas, and critical minerals to refineries, seaports, and points beyond national borders.
“Any time that we can focus on moving goods more efficiently out of the province, it’s going to be good for the province,” said Warren Kaeding, Minister of Trade and Export Development. “We’re so export dependent, and in order for us to continue that export growth-because that’s what we’ve seen over the last number of years, is significant growth, and I think all our sectors want to be able to participate in that growth for the future-we need to have an efficient transportation corridor to get it where it needs to go.”
Kaeding says that includes the United States, even in an unstable environment where tariff threats loom and shift focus constantly.
“We can’t forget about improving our access to the U.S. as well,” Kaeding said. “They are always going to be a major trading partner for us, but we also are diversifying our trade away through each of the other ports into international destinations-whether that’s Asia, or that’s Europe, or that’s Africa, or South America-each one of them has a different port access that would be the most efficient to get goods and services to them. That’s why we need agreements like these, MOUs like these, to focus on what is best for Saskatchewan and as well as the partners that we’re signing with-what’s best for them to get goods moved more efficiently.”
The agreement between the three provinces will help strengthen trade through shared infrastructure development and co-ordinated market strategies. One question on many minds is what that means for a true cross-Canada energy pipeline.
“He certainly articulated that he’s willing to support those in the Canadian national interest,” Kaeding said when asked if Prime Minister Carney has indicated anything definite on the issue. “I would say that certainly our premier, Premier Smith, I think even Premier Ford in Ontario, has articulated that will be in Canada’s national interest to support a pipeline.”
One study from the Montreal Economic Institute estimated if Canada had gone ahead with the Energy East and LNG Quebec pipelines over the past 10 years, some $38.4 billion in energy products could have been redirected annually to markets other than the U.S.
“We are sending a clear signal that Canada’s energy future will be built by Canadians, for Canadians,” Premier Scott Moe said of the MOU. “This agreement commits our provinces to work together to unlock new markets, shore up our supply chains from mine to port and advocate for the federal reforms our industry needs. By advancing pipelines, rail connections and critical-mineral processing capacity, we are safeguarding thousands of jobs, strengthening our energy security and fostering sustainable growth.”
No movement on canola tariff
As the landscape across Saskatchewan blazes bright yellow with blooming canola, the 100 per cent tariff on the cash crop heading to China is still in full force. The tax is in retaliation to Canada’s 100 per cent tariff on Chinese electric vehicles. Meanwhile, China is eyeing Australia as the source of their canola oil and meal products.
“China is definitely an important market for our canola producers, as well as some of the other destinations that we currently sell to,” Kaeding said. “From what we understand, the Prime Minister has had a number of levels of engagement with Chinese leadership to try and work through this. I’d like to see something articulated sooner than later to make sure that canola markets are strong, and values are at the levels they are currently at or better. That makes sure that our crushers have a very viable large market to continue to ship oil to and meal to.”
Kaeding feels a deal with China can’t be made fast enough, but it’s not a provincial decision-any deal brokered would need to come from the federal level.
“We’re going to continue to keep working on them (the federal government), pressuring them, pushing them to work out this trade issue,” Kaeding said. “It’s not only canola, it’s also peas and it’s pork, which are also important commodities for us in the province here, too.”
Upgrading Churchill
Saskatchewan also signed on to another MOU last week, this time with Manitoba and the Arctic Gateway Group regarding the expansion of Arctic trade via the Port of Churchill.
“It’s probably under-utilized for a reason,” Kaeding said of Churchill. “It’s definitely a very sensitive railway in that there’s a number of issues-what it’s mounted on, in permafrost, and going through sensitive areas for development. We know it’s going to need a significant amount of investment, which all our ports do.”
The northern Manitoba port is the shortest link from the Prairies to the Atlantic Ocean, and once saw Saskatchewan grain as a major export, until 2012 when the Canadian Wheat Board’s single desk marketing power ceased on Aug. 1 of that year, effectively losing the port’s largest customer. The Port of Churchill officially closed four years later, followed by significant spring flooding in 2017 that washed out tracks of the Hudson Bay Railway in 20 places.
Earlier this year, the federal government pledged $43 million over two years through the Remote Passenger Rail Program to Arctic Gateway to fix the HBR.
“That’s just again confirming our support of the initiatives we’re going to need to develop national infrastructure-the corridors, the gateways,” Kaeding said of the agreement with Manitoba. “You hear Premier (Moe) talking all the time about port to port to port, and whether that’s the west coast ports of Rupert, Kitimat, or Vancouver, or east coast ports like St. John, New Brunswick now is a big one for our potash guys trying to ship potash into Europe. Even the ports of Montreal, anywhere along the St. Lawrence that is moving export goods and as well as developing and certainly understanding what we’re going to need to put into Churchill to make it an even more viable port.”
Busy summer for trade
While some folks are enjoying a summer vacation, Kaeding has been busy talking trade and why places ought to do it with us.
“Looking at incredible opportunities that we’ve got from Armenia to Zaire,” he said, fresh off a string of meetings with international guests at Ag in Motion in Langham. “There’s interest from all over the world now in what we’re doing here in Saskatchewan-especially in the ag sector and the value-added sector.”
During the agriculture show near Saskatoon, Kaeding met with representatives from 15 different countries.
Earlier this month, Kaeding was in Québec City for the Committee on Internal Trade meeting that saw the province call on all provinces and territories to join the new West Partnership Trade Agreement. The largest barrier-free market between provinces is comprised of more than 11 million Canadians with a combined GDP topping $818 billion.
“Premier (Moe) is signing MOUs that are certainly trying to enhance our opportunities between each province in reducing the trade barriers, improving the mutual recognition and labor mobility, just to make sure that everyone is focused on reducing the interprovincial trade barriers that currently exist,” Kaeding said. “So that’s definitely one area that we’re focusing on.”
Some of the results of the CIT include reducing party-specific exceptions under the Canadian Free Trade Agreement by an additional 30 per cent, the expansion of the Mutual Recognition Project in the trucking sector to reduce cost and improve efficiency, and an MOU on direct-to-consumer alcohol sales.
Related stories from around the North:
Canada: ‘Port of Churchill is primed to be major Cdn trade asset’: Arctic Gateway Group CEO, The Canadian Press
Norway: Hybrid-powered electric cruise ship navigates Northwest Passage, CBC News
Russia: New New Shipping, Rosatom to build container ships for year-round Arctic sailings, The Independent Barents Observer
United States: U.S. regulator eyes Arctic shipping chokehold as key deadline approaches, Eye on the Arctic
