This column by @jackmintz raises some concerns as a potential policy response to the expected cancellation of the KXL permit.

1/

First, Dr Mintz cites numbers for direct and indirect jobs created by KXL for both Canada and USA. It isn’t clear where these numbers came from or if they are permanent jobs. Methods for calculating induced jobs are notorious for their unreliable and non-robust methodology.

2/
Second, Dr Mintz proposes that Canada retaliate with duties and other trade restrictions, as what happened with aluminum. However, KXL is very different, and this changes the scope of available responses, especially under our trade agreements.

3/
Canada viewed the US duties on aluminum and steel as violating trade agreements. The retaliatory duties were permitted under those agreements as a response to those violations. They are not permitted in response to cancelling KXL.

4/
It is also somewhat odd to see an economist arguing for a trade war in any event, especially one tat would be initiated by a small, trade-exposed economy against a much larger economy. No one wins in a trade war.

5/
Some actions, such as a Netflix tax/royalty (and similar for international online services) aren’t offside trade agreements. Dr Mintz notes that Canada is already considering these policies, along with other nations.

6/
Prior to doing so, it makes sense for Canada to properly understand the effect such a tax regime would have, including whether or not there are benefits to proceeding in tandem with other countries.

7/
As a retaliatory measure, therefore, it isn’t very useful. It would be foolish to promise to rescind the tax in exchange for KXL if it is a good policy and other countries go ahead with it in due course.

8/
Jumping the gun by implementing the tax now, before the analysis is complete, risks creating a tax measure that is bad for Canada. As a general rule, bad policy decisions should be avoided, even if they are just to spite someone else.

9/
This DOES NOT MEAN Canada should just accept the cancellation of KXL. There may be many valid reasons for Canada to push the President to reconsider, and there may also be valid options for how Canada can make its case stronger.

10/
But in defending KXL, Canada should be mindful of its obligations under trade agreements as well as what policy options are in the best interests of Canadians generally. We should never let a wedge issue push us into a policy response that only hurts us.

/fin

More from Government

Let me take a stab at this after years of reporting on Marine One, HMX-1, Continuity of Government, etc. None of this is definitive, but it could help explain what folks are seeing:

1.) HMX-1, which flies the VH-3D and VH-60N 'White Top' helicopters used to move... 1/X


the President and VP around, those helos being called Marine One or Two when either is onboard, need to train. The urban landing zones, including WH and VP Residence, are not simple to get in and out of. So, crews need some currency training. They are not just tasked with... 2/X

moving POTUS and VP to get them around the region and to Andrews AFB for long-haul flights, they are essential to Continuity of Government operations. This means that if a threat were to emerge, they need to be ready to snatch POTUS and VP in minutes. This is partially... 3/X

why they have a full forward operating location at Naval Support Activity Anacostia, just 3 miles from the WH. As such, practice is important and considering the state of things, it is critical now more than in any recent memory. 4/X

2.) Considering what happened last week, including mobs of Trump supporters screaming in unison to hang the VP for doing what the constitution states, absolutely despicable in every way, security has been tightened just as it has been all over. Using the helicopters instead.. 5/X
Labour Grandees are listed in Sir Keir Starmer's colleague Jeffrey Epstein's ''Little Black Book''; Blair, Mandelson and Alastair Campbell. COINCIDENTLY, Keir Starmer and some of the same people have connections to ANOTHER of the worlds most prolific peadophiles. #StarmerOut


Starmer failed to bring charges against Jimmy Savile for paedophilia. The decision was made despite the Crown Prosecution Service receiving substantial evidence of his crimes from witnesses and victims several years before Savile died in 2011. #StarmerOut
https://t.co/PNyX5uSAkw


With a past like hers, Margaret Hodge might show a bit more humility.
In the Eighties Hodge was aware of previous child sex abuse in the care homes for which she was responsible, and did nothing about it. #LabourLeaks #StarmerOut

As leader of Islington Council, a post she held from 1982-92, Margaret Hodge was aware of previous, horrendous child sex abuse in the care homes for which she was responsible, and did nothing about it. #LabourLeaks #StarmerOut #CSA

She was guilty of rather more than a casual failure of oversight. In an open letter to the BBC after it investigated a range of monstrous abuse (child prostitution, torture, alleged murders), Hodge libelled one of its victims as “seriously disturbed”. #LabourLeaks #StarmerOut

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