Canada needs to sell oil to China

Prime Minister Justin Trudeau's comments on Friday that Canada should "phase out" the oil sands in the province of Alberta has added a "fault line" in the country's relationship with China, former Canadian international trade minister Stockwell Day said.

"If Beijing is looking to sign long-term agreements, which is what it takes to finance refining and shipping product, a wrench has been thrown into the works here," Day said in a telephone interview from Hawaii.

"This comment casts a shadow on long-term predictability, and that's one thing we don't need in Canada related to our energy products right now," Day said.

While attending a town-hall meeting in Ontario, Trudeau was asked how his Liberal government's recent approval of pipeline projects fits with its pledge to reduce greenhouse-gas emissions, he said, "We can't shut down the oil sands tomorrow. We need to phase them out (and) manage the transition off our dependence on fossil fuels."

In November, the Trudeau government approved Kinder Morgan's 5-billion-U.S. dollar Trans Mountain Expansion Project, which will move oil along a 714-mile (1149-km) twinned pipeline from the Alberta capital of Edmonton to a terminal near Vancouver for export to Asian markets.

Day, who also served as minister for the Asia-Pacific Gateway (a portfolio that no longer exists) in Harper's Conservative government, believes that Trudeau's government should position Canada as a resource-rich exporting nation against the protectionist backdrop of incoming U.S. president Donald Trump's administration.

"China has over 2,000 coal-fired plants in the planning stages right now -- just to meet their increased energy demand," said Day. "If we can get our refined oil products to them, that would greatly alleviate their problem."

He said the Canadian energy-export file, along with the much-anticipated bilateral trade deal with China, would comprise two major challenges that await John McCallum, who stepped down this week as Canada's immigration minister to serve as the country's next ambassador to China.

"Much of Canada's future lies in our dealing with China, whether you're talking about tourists or students or trading goods or investment," said McCallum. "It is fundamentally in Canada's interests to expand our ties with China."

Day said that by choosing a politician rather than a diplomat to serve as Canada's representative in Beijing, Trudeau is advancing Canada's outreach to China at a "different level."

The Ontario-born former politician also had some advice for McCallum.

"He is going into a role that is going to demand vigor, intellectual fortitude and nuance in terms of balancing our relationship with the U.S., and what appears to be a bristly start for U.S.-China relations (under Trump)," said Day.

"That's a great opportunity for Canada. But it's one that will require strong relationships, clear messages and long-term predictability for the Chinese," he said.

source: Xinhua