Oil a Big Bargaining Chip

[Human]

For the record; We really got to kick this oil habit.

 

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http://www.nationalpost.com/news/story.html?id=464310

 

NEW ORLEANS -- Stephen Harper issued a direct warning Tuesday in the debate over NAFTA's future, reminding Americans who want to reopen the accord that U.S. dependence on Canadian oil gives Canada a big bargaining chip.

 

The Prime Minister staked out his position as he joined presidents George W. Bush of the United States and Felipe Calderon of Mexico at a joint news conference to end their three-way summit, which turned into a pep rally supporting NAFTA in the face of threats from the Democratic presidential contenders to kill or rewrite it.

 

Mr. Harper said the deal has been good for North America and that the Canadian government's preference is not to renegotiate it. But he made clear he was ready to go that route if need be.

 

"We'll be prepared for any eventuality," he said of calls by Democratic presidential contenders Hillary Clinton and Barack Obama to re-open the agreement to toughen environmental and labour standards.

 

Mr. Harper took the opportunity to play what many consider Canada's trump card in any future negotiations -- U.S. dependence on Canadian oil and gas.

 

"Canada is the United States' No. 1 supplier of energy," he said. "We are a secure and stable supplier that is of critical importance to the future of the United States.

 

"If we have to look at this kind of an option [a renegotiation], I say quite frankly, you know, we would be in an even stronger position now than we were 20 years ago. And we will be in a stronger position in the future."

 

Mr. Bush made a similar point, stressing more than once that Mexico and Canada stand out as secure and stable suppliers of oil at a time when prices are closing in on US$120 a barrel and when other U.S. suppliers in the Middle East are unpredictable at best.

 

Under the free-trade agreement, Canada is committed to keeping up its energy supplies to the United States even in times of shortages at home. In effect, it says cuts to U.S. buyers can be no deeper than they would be to Canadians.

 

Mr. Harper said he expects the next president will come to see the importance of the pact to North America and continue to work with it.

 

All three leaders launched staunch defences of the pact and stressed the benefits it has delivered. Mr. Calderon said reopening it would "condemn the region to complete backwardness" while India, China and the European Union are increasing their competitiveness.

 

Mr. Bush argued those "who say get rid of NAFTA as a throwaway political line" are playing with fire because ditching the agreement would cost jobs and investment in all three countries.

 

The summit in hurricane-battered New Orleans was designed by Mr. Bush to showcase the city's recovery. The leaders stayed close to the centre of town, which was largely spared Katrina's wrath in 2005, and only ventured near some of the ruined neighbourhoods when they had breakfast at a well-known restaurant called Dooky Chase. It is located across the street from a flood-condemned housing project, known as Lafitt.

 

Before leaving New Orleans, Mr. Harper did do a quick tour of Ward Nine, the area hardest hit by Katrina. His guide was David Wilkins, U.S. ambassador to Canada.

 

The leaders spoke with reporters after meeting business leaders from all three countries who make up the North American Competitiveness Council. The council, which includes 10 leaders from each country, pressed the leaders to stick with NAFTA and also to press ahead with efforts to deepen the economic, social, environmental and security relations among the three countries.

 

Canadian critics were quick to jump on Mr. Harper's stance, saying they were upset that he was talking about U.S. energy security without mentioning the need to secure Canada's own energy supply.

 

"There was not one word about Canada's energy security," said Dave Coles, president of the Communications, Energy and Paperworkers Union.

 

"Eastern Canada is still in a position where all of its oil must come through the United States even though it starts in Alberta and Saskatchewan."

 

Canwest News Service

 

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[Luke_Wilbur]

I think we are going to have to focus more on just our hemisphere. It has all the resources we need and is easier to maintain.