In today’s episode of Trade Dispute: Impact on the Prairies, Regina Mayor Chad Bachynski discusses municipal resilience and the power of buying Canadian. We also examine cross-border diplomacy at a Midwestern state summit, and hear from Alberta Premier Danielle and veteran broadcaster Lorne Harasen.
Podcasts available now on GX94, Yorkton, or 620 CKRM, Regina, hosted by Steven Wilson.
Steven Wilson — Welcome to Trade Dispute: Impact on the Prairies. I'm Steven Wilson. Tensions remain high heading into the Labour Day weekend as Canada prepares to trigger retaliatory tariffs against the United States on Tuesday.
Prime Minister Mark Carney addressed the stalled talks yesterday, saying Ottawa is ready to return to the bargaining table the moment the White House is done with posting memes and ready to take negotiations seriously. While federal rhetoric heats up, municipal leaders across Saskatchewan are assessing the ground-level impact on their communities.
In Regina, Mayor Chad Bachynski says direct city procurement is largely insulated, with less than 1 per cent of municipal purchases coming from south of the border, primarily for specialized software.
But as Bachynski explains, the real threat is prolonged economic uncertainty, and he believes consumer habits will play a crucial role in seeing communities through.
Chad Bachynski — I think there is a bigger impact when people are given the choice and Canadians are choosing Canadian products. I think that sends a bigger signal. Instead of one person or a government making the choice for a residence and making a political statement, I think it's the citizens speaking for themselves, saying, you know, we're choosing.
We have the choice. We're choosing Canadian products.
Steven Wilson — Even with political fireworks in Washington and Ottawa, state-level relationships tell a very different story. This week, nine Saskatchewan lawmakers from both the governing Sask Party and the opposition NDP traveled to Minnesota for the Midwestern Legislative Conference. Rural and Remote Health Minister Lori Carr was among the delegates. SaskToday political reporter John Cairns has more on what happened when Prairie lawmakers sat down with their American counterparts.
John Cairns— There were a half dozen Sask Party MLAs and also three opposition MLAs who went down to Minnesota for the Midwestern Legislative Conference this week. That conference wrapped up on September 2nd. Among those who attended was Minister of Rural and Remote Health Lori Carr.
Carr said there were some positive interactions with the American lawmakers at that conference.
Minister of Rural and Remote Health Lori Carr — And we had some great conversations, still developing those relationships with U.S. representatives and senators and just having that common theme in what do we have in common and what can we work on together. And it was really encouraging to see that they are willing to work with us just as much as we are willing to work with them.
John Cairns — Despite some of the rhetoric in recent days, Carr said there was no tension at that conference. She described it as collegial and cooperative, with legislators looking to see how they can continue to work together. For 620 CKRM, I'm John Cairns.
Steven Wilson — While legislators find common ground in the Midwest, the trade rift has opened a new front in the energy sector. Donald Trump is pointing to a new agreement with Venezuela as a potential alternative to Canadian energy imports. But Alberta Premier Danielle Smith says Venezuelan crude is nowhere near ready to displace Western Canadian supplies, even if the situation reinforces a long-standing Canadian weakness.
John Tupper reports from Fort McMurray.
Jon Tupper — Venezuela is the latest pressure point in a trade dispute between Canada and the United States, with President Donald Trump pointing to a new Venezuelan oil agreement as a warning to Canada. But Alberta Premier Daniel Smith isn't buying the idea that Venezuelan crude poses an immediate threat to Canadian oil. Speaking earlier this week, Smith said that Venezuela is behind Canada and faces years of work before it can significantly increase production.
Premier Danielle Smith — It looks to me like they're hoping to scale up in the future over several years to 1.5 million barrels a day.
Jon Tupper — Smith says Venezuelan oil also faces a massive infrastructure challenge, noting its production hasn't been to three million barrels a day since 1997.
Premier Danielle Smith —They also have significant challenges. They haven't been at a level of development of around three million barrels since 1997, so they've got a huge investment that needs to be made.
Jon Tupper — But Smith says Trump's latest pressure tactic does reinforce one vulnerability for Canada, its reliance on the United States as a dominant oil customer.
Premier Danielle Smith — There's peril in having a single customer. We saw that historically when the shale oil revolution happened and our product became less valued by the United States and there was a bit of a glut, we ended up with $30 a barrel differential on our Western Canada select. That's what happens when you only have one customer.
Jon Tupper — Smith says the answer isn't fear of Venezuelan competition that may still be years away. It's to keep Canada building infrastructure right now, including a new pipeline to the West Coast while expanding access to additional customers in Asia and Europe. In Fort McMurray for CKRM News, I'm John Tupper.
Steven Wilson — From energy markets to grocery store shelves, many Canadians are asking how the country will endure if this economic confrontation drags on. Veteran Saskatchewan broadcaster Lorne Harasen has chronicled Canada-U.S. relations over several decades. He says while the current dispute is uniquely volatile, history shows Canadians have the resolve to get through severe cross-border storms.
Lorne Harasen — Well, it's going to be tough. You know, it's going to be very tough. These tariffs are horrendously high and they will have an effect on business and manufacturing and some of our industries and so on.
We'll have to see. So, do I think we'll be able to weather the storm? Well, we'll have to.
We got through the Dirty Thirties and we got through World War II, which was a major kind of thing.
Steven Wilson — Next week, Canada's retaliatory tariffs are scheduled to take effect, marking a critical new chapter in this cross-border showdown. We'll be back on Tuesday with complete coverage of the economic and political fallout across our region. I'm Steven Wilson.
Have a great long weekend and thank you for listening to Trade Dispute Impact on the Prairies.
