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Turns out that there is a business case for exporting LNG to Europe

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From Resource Works

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The EU-US trade deal includes provisions for American energy exports, including LNG that Canada could have supplied. Canada must not make the same mistakes in the Pacific.

The trade deal signed between the European Union and the United States is a slap in the face for Canadian energy. American oil, natural gas, and even nuclear fuel, are now slated to flow across the Atlantic to European buyers, as the bloc pushes to fully wean itself off Russian energy.

It should have been Canadian liquefied natural gas (LNG) from the Atlantic coast.

Canada had every chance to build a thriving LNG industry on its East Coast. But short-sighted, hesitant government policy has consistently dismissed what has now proven to be a strong and viable business case.

The $750 billion energy trade deal between the EU and the US shows how costly that’s been.

Former Prime Minister Justin Trudeau repeatedly said Atlantic LNG was never economically viable. He famously told a 2022 press conference with German Chancellor Olaf Scholz that there’s “never been a strong business case” for exporting Canadian LNG from the East Coast.

Trudeau cited distance and infrastructure challenges, saying Canadian gas was uneconomic for direct export to Europe. Trudeau’s dismissal led to Germany signing a 15-year LNG deal with Qatar later that same year, in the first reminder of what Canada missed out on.

Reality contradicts the former Prime Minister’s pessimism. European leaders, desperate for energy after Russia’s invasion of Ukraine in 2022, repeatedly approached Canada with LNG requests. Chancellor Scholz came to Canada, followed by Japanese Prime Minister Fumio Kishida in 2023, and Greek Prime Minister Kyriakos Mitsotakis and Polish President Andrzej Duda in 2024.

Each time they received vague assurances and non-commitments from Trudeau’s government. Europe’s need was real, urgent, and sustained, but Canada’s response was inadequate.

As the Fraser Institute pointed out in May 2024, transitioning coal-dependent countries like India to natural gas would achieve four times more global emission reductions than shutting down Canada’s entire economy. Furthermore, Resource Works CEO Stewart Muir said natural gas isn’t just a “bridge fuel,” but a destination fuel for global energy stability.

But Canada chose domestic political caution and lofty green ideals, and ignored the broader global emission reduction opportunities. The results are clear.

The new US-EU trade deal, which guarantees $250 billion a year in American LNG purchases for the next three years, is exactly the kind of long-term market Canada could have had years ago. US LNG developers like NextDecade, Venture Global, and Cheniere Energy are already riding high on market confidence, and US natural gas producers are cashing in on the growing transatlantic demand.

Meanwhile, Canada’s Atlantic provinces are missing out on the jobs and prosperity that would have come with robust LNG development.

Trudeau’s own Energy Minister, Jonathan Wilkinson, said last March that Canada wouldn’t subsidize future LNG projects, calling them “inefficient fossil fuel subsidies.”

The regulatory framework, Bill C-69, and BC’s CleanBC plan further added to investor uncertainty, with long approval timelines and strict emission caps. As a result, Canada has seen $670 billion in resource projects cancelled since 2015, including critical Atlantic LNG projects.

Ironically, Canada’s hesitation has inadvertently increased global emissions, as Europe and Asia revert to coal due to the lack of reliable gas supplies. That’s the opposite of Trudeau’s climate goals, proving that Canada’s cautious approach to LNG was not only economically short-sighted but environmentally counterproductive.

Today, as US LNG terminals thrive and European reliance on American energy deepens, Canada must recognize that what our leaders said did not exist was always real. The “business case” Trudeau dismissed as weak was strong enough for our southern neighbours to jump at.

Canada’s indecision has left it on the sidelines, as the economic and strategic benefits flow to those who had the will to build.

All is not yet lost. Canada is still ahead of the US on supplying LNG to the Asia-Pacific, with LNG Canada in the first year of operation. Cedar LNG and Ksi Lisims LNG will soon join them in supplying Canadian LNG to Japan, South Korea, and others.

If the Atlantic opportunity has passed, ensuring that a Pacific LNG export industry can thrive is a necessity for Canada’s energy future.

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Business

Trump: Americans to receive $2,000 each from tariff revenue

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From The Center Square

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President Donald Trump on Sunday said every American with the exception of the wealthy will receive $2,000 from the revenue the U.S. has collected from tariffs.

“A dividend of at least $2000 a person (not including high-income people!) will be paid to revenue,” Trump posted on Truth Social. He did not say when or how the tariff revenue would be distributed.

“We are now the richest, most respected country in the world with almost no inflation and a record stock market price. 401Ks are highest ever,” Trump wrote. “We are taking in trillions of dollars and will soon begin paying down our enormous debt, $37 trillion. Record investment in the USA, plants and factories going up all over the place.”

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families and pay down the national debt. Economists, businesses and some public companies have warned that tariffs will raise prices on a wide range of consumer products.

Trump’s Liberation Day tariffs have been challenged in federal courts as unconstitutional by some business groups and Blue states, who argue that only Congress has the authority to enact tariffs. The U.S. Supreme Court last week heard oral arguments in a consolidated case challenging the tariffs.

Even some of the court’s conservative justices seemed skeptical of Trump’s authority to issue sweeping tariffs. Trump addressed that skepticism in his social media post.

“So let’s get this straight? The president of the United States is allowed (and fully approved by Congress) to stop ALL TRADE  with a foreign country (which is far more onerous than a tariff) and LICENSE a foreign country, but it is not allowed to put a simple tariff on a foreign country, even for the purposes of NATIONAL SECURITY,” he wrote. “That is not what our great founders had in mind. The whole thing is ridiculous! Other countries can tariff us, but we can’t tariff them?  It is their DREAM!!! Businesses are pouring into the USA ONLY BECAUSE OF TARIFFS. HAS THE UNITED STATES SUPREME COURT NOT BEEN TOLD THIS??? WHAT THE HELL IS GOING ON???”

The Center Square’s Brett Rowland contributed to this report. 

Dan McCaleb is the executive editor of The Center Square.

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Agriculture

The Canadian Food Inspection Agency’s Bloodlust for Ostriches: Part 2

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I published an article about how the Canadian Food Inspection Agency (CFIA) failed to follow the science when trying to justify their horrific extermination of hundreds of healthy ostriches on a farm in a remote location in British Columbia, Canada. I addressed their misleading claim that it was necessary to safeguard human and animal health. Both science and plain common sense demonstrated that their claim was misinformation.

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How legitimate is their claim that killing was necessary to preserve the export market?

Now, I cannot allow the CFIA’s second misleading rationale for slaughtering the ostriches to go unchallenged. Specifically, the CFIA claimed that the killing was also required to safeguard Canada’s almost billion-dollar poultry export market. The issue is that exports can be suspended if the policies of the World Organization for Animal Health are contravened. But what the CFIA failed to disclose to the public was that our country is not considered a single geographical zone when it comes to these policies. Rather, it is divided into numerous zones.

When looking at the World Organization for Animal Health’s Terrestrial Animal Health Code, Article 10.4.3 jumps out as being particularly important in this case. It states:

A country or zone may be considered free from high pathogenicity avian influenza when” “absence of infection with high pathogenicity avian influenza viruses, based on surveillance […] has been demonstrated in the country or zone for the past 12 months”.

During this twelve-month timeframe, exports from anywhere within the affected zone would presumably have to be suspended and biosecurity polices adhered to. Indeed, this could be problematic if it meant shutting down the export market of an entire country for an entire year. But that was not the case here. Consider these facts:

  1. The farmers at the heart of this case had no need to maintain an export market within their region for the viability of their farming operation.
  2. Biosecurity protocols imposed by the CFIA were already being adhered to.
  3. It is my understanding that the ostrich farm was isolated within a remote designated zone. Therefore, suspending exports from that zone would not risk harming export potential for other farmers. Even if the zone did incorporate far-away farms, the CFIA could have done the right thing and attempted negotiating redrawing of boundaries with the World Organization for Animal Health to prevent or minimize indirect harm to other farms.

In other words, the ostriches could have been tested after the flock recovered from the disease outbreak, with testing ending twelve months later. If these tests were consistently negative, the World Organization for Animal Health would have officially declared the zone housing the ostriches to be virus-free and it would lift its moratorium on exports from that isolated zone.

My assessment is that this would have allowed the ostriches to live, with no substantial negative impact on the ability to export poultry products from Canada.

Further, common sense also places the CFIA’s rationale into question. Their battle with the farmers took place over the better part of a year while they apparently ignored this subsection of the policy, yet Canada’s poultry export market continued unhindered.

So I am curious as to why the CFIA has been so hell-bent on killing healthy ostriches to purportedly preserve Canada’s export market. Why didn’t they advocate for the farmers from the very beginning by leaning on clauses like Article 10.4.3 to negotiate with the World Organization for Animal Health? I thought that government agencies were supposed to serve the public that pays them. I saw no evidence of the CFIA trying to help the farmers. Instead they seemed focused on doing everything but try to help them. The optics would have been much better for the CFIA if they could produce documentation showing that they rigorously negotiated on behalf of the farmers about Article 10.4.3 with the World Organization for Animal Health but the latter blatantly refused to honour the requests.

Ultimately, it seems to me that the CFIA not only failed to follow the science, but it was also selective in its interpretation and defense of the policies.

It also makes me wonder if Article 10.4.3 had anything to do with why the CFIA was so adamant about not allowing the birds to be tested almost one year after the outbreak. To have demonstrated an absence of the virus almost one year later would have shown that they were on the cusp of being able to use Article 10.4.3 to restore Canada’s coveted country-wide avian influenza-free status.

By the way, all countries claiming to have avian influenza-free status are misleading people. Avian influenza viruses are endemic. They are carried and transmitted by wild birds, especially waterfowl, that migrate around the globe.

The most hypocritical aspect of this is that the people responsible for the deaths of hundreds of valuable, healthy ostriches that were almost certainly virus-free (prove me wrong with data), likely let their own kids play on beaches and parks that are routinely populated by ducks, geese, and seagulls, and stipple-painted with the feces of these birds that serve as natural reservoirs for the virus.

All hail the hypocritical virtue signaling!

To be consistent with their reasoning, every person that supported what the CFIA did to the healthy ostriches should never step foot on any premises frequented by wild birds.


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