Ottawa plays oil card in NAFTA spat

lets face it.... Ottawa doesn't have the guts to the flow. Too much is at stake. As Canadians, we are the first ones to bitch and complain about the American policies and how they directly affect us, but ultimately, we have nothing to gain if we turn off the tap. Oil price will soar and the average Canadian Joe will have to pay more to fill his SUV.

Plus the Americans will see right thru it and call our bluff.

the democrats have made a silly decision to bring up this nafta thing . don't think there is too much support for the idea here. and really why would we want to suddenly renogiate NAFTA now ? just because the states is having some job issues. its not like canada isn't having some job issues as well and have we said we want to renegotiate the deal ?

Woo hoo! It's about time! Canadian citizens have been demanding Canada cut off their oil since the softwood lumber dispute started.

Don't forget how NAFTA started. In 1992 when we had only the bi-national free trade agreement, one single Canadian steel company decided to build a new smelting furnace. All steel companies in Canada or the US were still using old furnaces built during World War 2. Steel companies invested their profits in the stock market rather than new equipment. This one Canadian company sold their investments to develop a new furnace, and had to take out a bank loan. The new furnace produced steel that was more pure, consequently stronger, used less coal and few personnel to operate it. They were able to sell steel that was higher quality and lower price per pound than any competitor; customers bought their product, they dramatically increased market share. Yet they could still pay all their operating expenses, make their bank loan payments, and had profits left over to pay their shareholders. The US steel companies complained but the bi-national free trade commission ruled it was just fair trade. A state court in Virginia overruled them, imposing severe duties. Canada's response was "How the hell can a lower court overrule a higher court!?" We demanded clear, binding rules to resolve disputes. Also in 1992 the European Union was formed, and US president Bill Clinton was afraid they would become the dominant economic force in the world. He wanted to add Mexico to the free trade agreement so there would be as many people in NAFTA as the EU. Canada didn't want a free trade agreement with Mexico, but you give something to get something. We agreed to Bill Clinton's demand to add Mexico in exchange for clear and binding dispute resolution rules. Then the softwood lumber crisis happened, NAFTA ruled in Canada's favour (well, mostly in our favour), and the US still refuses to comply with that ruling.

At the time the US first refused to comply, almost all Canadian citizens demand we use oil against them. Some people wanted a countervailing export duty, others wanted to just cut them off. The US is dependant on energy, Canada has the second largest oil deposit in the world, and between oil and natural gas we export more energy to the United States than any other country. The United States believes any negotiations have to be a win/lose contest, they try to bully and intimidate. Canada believes in cooperation, civilized conversation to ensure all involved benefit. The United States is our ally and partner, not an opponent. However, in any trade negotiation the guys they send to the table are swindlers who try to screw us over. When a battle of wills occurs, the US is the poster boy for brinksmanship. That means pushing it to the brink of disaster. Canada doesn't practice brinksmanship, so the only way to cure them of that bad habit is to push them over the brink. The guys in the US who think they can bully will only respect us if we give them a bloody nose. The US is family, but our big brother has beaten us up for our lunch money far too long. If you turn around and give a bully a bloody nose, the strange bizarre backward thinking of a bully often results in his giving you respect. Well, at some point we will have to follow through and cut off their oil. We have natural gas and electricity to also hold over them.


No bluff, we have to follow through. If it becomes bad we can always export oil to China. They have already tried to buy land the tar sands sit on. There is a lot at stake, consequently we can't afford to capitulate.

So kudos to David Emerson; he actually did something right.

Oh.. I guess Obama phoned the Canadian president again.

You left out a few cliches here, Winnipeger.

I WONDER WHAT WOULD HAPPEN IF WE ALSO SHUT OFF THE POWER WE SEND SOUTH...lol

I dunno. At this time if we decided to cut the flow of Oil to the US, there'd be a lineup of other Nations willing to Buy our Oil.

obama is a liar. he is just sucking up to the dying unions in the usa to get there votes and then he will abandon them.