Canada & the US: Essential Allies for Trade, Energy, and a Changing World

Apr 7, 2021

-Terre Camille

Rachel McCormick is the Canadian Consul General and is our consultant for Canada-Us relations. In the interview details an alliance that is very codependent on trade and energy. Being faced with an abundance of world issues, we will revisit some of the hottest topics of 2020 and what we should expect from our alliance moving forward in 2021.

❖ What is our country’s best partnership strength?

– McCormick focuses on “historic connections” and how “under-recognized” our security and defense are in respect to the Canada-US alliance. There are over 700 Canadian Air Forces that serve in America with 19 being present in Texas and Oklahoma. She exemplifies the fact of how unknown and quiet the military operations are that exist between the two countries and deems it a testament to just how well the two work together.

❖ Canada is currently the US’s largest crude oil supplier, what does the future environment look like regarding its demand?

– She describes a future that is still very dependent on the export of crude oil for the US. McCormick tells us about 70 pipelines that are used between the two countries and that Canada and the US’s energy systems are a lot more interconnected than most people realize. Jobs are a huge product of the Canadian crude system, bringing value into the US economy. Over the past 15 years, the U.S. while reducing its energy production has more than doubled its crude oil imports from Canada.

– The topic of climate change was also discussed since McCormick believes there are major misconceptions when it comes to crude oil and the environment. She says the Keystone Pipeline (KXL) has cut their emissions by 28% and has a price on carbon that is currently set at $30 and will increase until net-zero emissions are achieved.

❖ What did Canada’s response to Covid-19 do on Oil Field employment and the options moving forward?

– McCormick acknowledges there has been a crash in the oil industry but vows to keep essential travel that includes energy services that directly affect our energy systems. An organization was created to help energy service companies called the inactive oil and gas well clean-up program. It was designed to fund jobs for these energy service companies to go to Alberta and British Columbia to clean up the orphaned wells that are becoming an environmental liability on the community.

❖ What does NAFTA 2.0 or U.S. MCA look like for Canada-US relations?

– Rachel McCormick expresses being 25 years old, NAFTA was outdated and needed modernizing. Taking this chance to also draft up a more progressive agreement. Things to be included in NAFTA 2.0 were controlled on the auto sector and implementing a minimum wage that 40%-45% part of the car shall not be made by anyone making less than $16/hour. Regulating online commerce and reducing some of the red tape that surrounds technological infrastructure and how they play a part in cross-border transactions.

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