By Chris Brown

Raises trade and economic sanctions

Kenney says U.S. decision to cancel Keystone XL an insult and a gut punch

Jan 20, 2021 | 5:13 PM

Calling it a “gut punch” for the economies of Canada and Alberta, Premier Jason Kenney said he is deeply disturbed that one of U.S. President Joe Biden’s first actions in office has been to rescind the presidential permit for the Keystone XL pipeline border crossing.

“Frankly it is an insult directed at the United States’ most important ally and trading partner on day one of a new administration,” said Kenney.

The premier called on the federal government to ask the new administration to sit down to discuss the decision, saying that is the least that our closest friend and ally owes Canada.

“If however, the U.S. government refuses to open the door to a constructive and respectful dialogue about these issues, then it is clear that the Government of Canada must impose meaningful trade and economic sanctions in response to defend our country’s vital economic interests,” said Kenney.

Kenney lamented that the Biden administration didn’t give Alberta the chance to press its case formally before making the decision.

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“That’s not good faith. In my books that’s not how you treat a friend and an all.”

He said the entire point of the Keystone XL project is to strengthen the Canada-U.S. relationship by building the modern infrastructure for safe, secure future exports of energy to the U.S.

Kenney said he’s been told the decision was made over concerns about climate policy.

“But the U.S. State Department’s exhaustive analysis that was conducted under President Obama’s administration concluded that Keystone XL would actually reduce CO2 emissions, as the alternative will be to move this energy by higher emitting and less secure rail transport.”

He said oilsands producers have made strides on reducing carbon intensity and rank at the top of the world in global assessments of environmental, social and governance standards.

Over 2,000 people have lost their jobs as a result of this decision, said Kenney, adding his thoughts go to every one of them and they will continue to fight for them and the 59,000 jobs the project would create.

Prime Minister Justin Trudeau issued a statement on Biden’s decision.

He says, “we are disappointed but acknowledge the President’s decision to fulfil his election campaign promise on Keystone XL.”

He also says workers in Alberta, Saskatchewan, and across Canada will always have the support of the federal government.

Kenney said he has no regrets about the government’s investment in the pipeline, which included $1.5 billion directly in the project, along with loan guarantees.

He says without the investment the project would have died last year and that any responsible Alberta government would have done the same.