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For Trans Mountain? JUNE 2018 WHAT’S NEXT for Trans Mountain? Also INSIDE: Canada-US Economic Canadian The future relations competitiveness national security of the G7 1 Published by the Macdonald-Laurier Institute PublishedBrian LeeBrian by Crowley, theLee Crowley,Macdonald-Laurier Managing Managing Director, Director [email protected] Institute David Watson,James Anderson,Managing ManagingEditor and Editor, Communications Inside Policy Director Brian Lee Crowley, Managing Director, [email protected] David McDonough, Deputy Editor James Anderson,Contributing Managing writers:Editor, Inside Policy Contributing writers: Thomas S. Axworthy PastAndrew contributors Griffith Benjamin Perrin Thomas S. Axworthy Andrew Griffith Benjamin Perrin Mary-Jane BennettDonald Barry Jeremy Depow Stanley H. HarttMarcus Kolga MikeRobert Priaro P. Murphy Massimo BergaminiDonald Barry Peter DeVries Stanley H. HarttAudrey Laporte Mike PriaroDwight Newman Derek BurneyKen Coates Brian Dijkema Paul KennedyPeter Layton Colin RobertsonGeoff Norquay Ken Coates Paul Kennedy Colin Robertson Charles Burton Ujjal Dosanjh Brad Lavigne Benjamin Perrin Brian Lee Crowley Audrey Laporte Roger Robinson Catherine CanoBrian Lee CrowleyDon Drummond Audrey Laporte Ian Lee Roger RobinsonJeffrey Phillips Elaine CarsleyCarlo Dade Patrice Dutil Ian LeeChristian Leuprecht Robin V.Mike Sears Priaro Carlo Dade Ian Lee Robin V. Sears Duanjie Chen James Fergusson Edward Luttwak Richard Remillard Michael ChongLaura Laura Dawson DawsonMartha Hall FindlayJaniceJanice MacKinnonMacKinnonMeredith MacDonald MunirMunir SheikhPhilip Sheikh Carl Salzman Dan Ciuriak Chrystia Freeland Janice MacKinnon Munir Sheikh Scott ClarkGuyGuy Giorno Giorno Stephen Greene LindaLinda NazarethVelma McColl AlexAlex Wilner WilnerSean Speer Ken Coates Stanley Hartt David McDonough John Thompson StephenStephen Greene Greene GeoffGeoff Norquay Celine Cooper Carin Holroyd Shuvaloy Majumdar Gil Troy Philip Cross Dean Karalekas Paul Martin Michael Watts Past contributors: Mary-Jane Bennett, Carolyn Bennett, Massimo Bergamini, Ken Boessenkool, Brian Bohunicky, Scott Brison, Past contributors:Laura Dawson Mary-Jane Bennett, PaulCarolyn Kennedy Bennett, Massimo Bergamini,Ted Menzies Ken Boessenkool, BrianAlex Bohunicky, Wilner Scott Brison, Derek Burney, Catherine Cano, Dan Ciuriak, Scott Clark, Philip Cross, Celine Cooper, Peter DeVries, Don Drummond, John Duffy, Derek Burney, Catherine Cano, Dan Ciuriak, Scott Clark, Philip Cross, Celine Cooper, Peter DeVries, Don Drummond, John Duffy, Patrice Dutil, Joseph Fantino, Daniel Gagnier, Brad Lavigne, Tasha Kheiriddin, Jeremy Kinsman, Steven Langdon, Velma McColl, Patrice Dutil, Joseph Fantino, Daniel Gagnier, BradCover Lavigne, photo: Tasha transmountain.com Kheiriddin, Jeremy Kinsman, Steven Langdon, Velma McColl, Ted Menzies, Robert P. Murphy, Peggy Nash, Gil Troy, Michael Watts. Ted Menzies, RobertProduction P. Murphy, designer: Peggy RenéeNash, DepocasGil Troy, Michael Watts. The contributors to this publication have worked independently and are solely responsible for the views presented here. The contributorsThe toopinions this publication are not necessarily have workedthose of independently the Macdonald-Laurier and are Institute,solely responsible its Directors for or the Supporters. views presented here. The contributors to this publication have worked independently and are solely responsible for the views presented here. The opinionsThe opinions are not are necessarily not necessarily those those of the of theMacdonald-Laurier Macdonald-Laurier Institute, Institute, itsits DirectorsDirectors or or supporters. Supporters. Inside Policy is published six times a year by the Macdonald-Laurier Institute. The contents of the magazine are copyrighted, but may be re-produced with permission in print, and downloaded free of charge from the MLI website: macdonaldlaurier.ca Inside PolicyInside is Policy published is published six times four a times year aby year the by Macdonald-Laurier the Macdonald-Laurier Institute. Institute. The The contents contents ofof the magazinemagazine are are copyrighted, copyrighted, but may bebut re-produced may be re-produced with permission with permission in print, in print, and anddownloaded downloaded free free of ofcharge charge from from the the MLIMLI website: macdonaldlaurier.ca macdonaldlaurier.ca For advertising information, please email: [email protected] For advertisingFor advertising information, information, please please email: email: [email protected] [email protected] Subscriptions: $39.95 per year; single issue, $6.95. | ISSN 1929-9095 (Print) | ISSN 1929-9109 (Online) Subscriptions: $39.95 per year; single issue $6.95 | ISSN 1929-9095 (print) 1929-9109 (online) Subscriptions:The Macdonald-Laurier $39.95 per year; Institute single is issue, grateful $6.95. to Intuit | ISSN Canada 1929-9095 for their support(Print) |of ISSN Inside Policy1929-9109 magazine. (Online) Inside Policy 323 Chapel Street, Suite 300, Ottawa, ON, Canada, K1N 7Z2 | Ph 613-482-8327 The Macdonald-LaurierInside Policy: 8 YorkInstitute Street, is Suitegrateful 200, to Ottawa Intuit ON,Canada Canada for K1Ntheir 5S6,support PH; 613-482-8327of Inside Policy magazine. 2 Inside Policy —Inside The MagazinePolicy: 8 York of The Street, Macdonald-Laurier Suite 200, Ottawa Institute ON, Canada K1N 5S6, PH; 613-482-8327 2 Inside Policy — The Magazine of The Macdonald-Laurier Institute insidepolicy [march].indd 2 14-04-01 10:00 AM insidepolicy [march].indd 2 14-04-01 10:00 AM From the editors Contents LI has been at the forefront of the debate on how to best approach 4 Ontario, First Nations take giant step toward Mthe Trans Mountain pipeline, and we are pleased to showcase a reconciliation Ken Coates and Stephen Crozier selection of our work on this topic in this issue of Inside Policy. 5 Why Trudeau spent $3.5 billion to nationalize Managing Director Brian Lee Crowley looks at why the Trans Mountain Brian Lee Crowley government nationalized Trans Mountain, which according to Munk 7 The pipeline purchase is a sign of economic Senior Fellow Sean Speer is another example of economic enfeeble- enfeeblement Sean Speer ment. Carin Holroyd and Munk Senior Fellow Ken Coates explore 8 What the Kinder Morgan decision says about what this decision can teach us about the challenges facing investment investing in Canada Carin Holroyd and Ken Coates in Canada. Yet, as Coates and Stephen Buffalo write, Canada’s natural 9 How Indigenous peoples can save the resource economy in Canada resource economy could also benefit from a full Indigenous partnership Stephen Buffalo and Ken Coates – a realization that countries like Taiwan are beginning to understand, according to Coates and Holroyd. An important step was recently 11 Carbon taxes do not curb emissions or help battle climate change Philip Cross established with the Ontario government’s revenue-sharing plan with First Nations, as noted by Coates and Stephen Crozier. 12 Following Comeau, lawmakers need to defend Canada’s economy could use such an injection of entrepreneurship. Canadians’ economic rights Brian Lee Crowley and Sean Speer Munk Senior Fellow Philip Cross outlines the high economic costs associated with the government’s carbon tax plan, while Senior Fellow 14 Budget doesn’t make grade in truly helping women Linda Nazareth takes issue with the government’s plans for gender- to narrow wage gap Linda Nazareth equal pay. Speer also joins Robert Asselin to offer a guide for fixing 15 Canada must play the long game to fix its economic Canada’s economic competitiveness. competitiveness Robert Asselin and Sean Speer Crowley and Speer also argue that we could benefit from a 16 Fill in the gaps to strengthen Pharmacare charter on economic rights to rectify the shortcomings arising from Sean Speer our interprovincial trade barriers. And Speer recommends ways to fix 19 Is Canada’s defence of supply management giving Canada’s pharmacare system. away the farm? Larry Martin Most importantly, the federal government must also deal with NAFTA negotiations and a Canada-US trade war on the horizon. 20 No one will win Trump’s fight between the US and Canada Laura Dawson Munk Senior Fellow Laura Dawson makes clear that no one will win in a trade war – a point reiterated by former Republican Congress- 22 Canada’s losing jobs when we should be booming man Charles Boustany. Cross looks at the buoyant business climate economically. Guess why Philip Cross in the US compared to the weak investment in Canada. Meanwhile, 23 Trump’s tariff justification is patently absurd Larry Martin provides some recommendations on how to best increase Charles Boustany market access in trade negotiations like NAFTA. 24 What lessons can be learned from the Toronto Even as Canada tries to deal with an unpredictable US president van attack case? Scott Newark and fraught trade negotiations, it also must confront other challeng- 26 Not to Aecon, nor to Huawei: the security of Canada es. Scott Newark offers lessons from the van attack in Toronto, while can never be for sale Brian Lee Crowley Crowley warns of being too close to China-owned Huawei. Canada must also be ready to confront cyber and disinformation threats from 27 The international recognition of Indigenous Putin’s Russia, as noted by Senior Fellow Marcus Kolga. resource rights Ken Coates and Carin Holroyd The G7 offers an important forum to deal with key global challenges. 28 The G7 can find common cause in the South As argued by Crowley, the G7 could find common cause in confronting
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