(Washington) The outcome of the US midterm elections will also affect Canada’s economy as Democrats and Republicans clash over international relations issues.
Posted at 5:52 p.m
James McCarten The Canadian Press
An example: Democratic President Joe Biden canceled the Keystone XL pipeline project immediately after taking office.
Now it’s Embridge’s Line 5, crossing the Canada-US border, that has become a symbol of the state of relations between the two countries: economically vital but politically delicate.
For example, Democratic Michigan Gov. Gretchen Whitmer has been fighting in court for a year to have the pipeline shut down over fears of an environmental disaster in the Mackinac Strait, the environmentally sensitive corridor where Line 5 crosses the Great Lakes.
Her Republican opponent Tudor Dixon attacked her for this during a televised debate on October 25:
“Justin Trudeau, the world’s most radical environmentalist, invoked a 1977 contract to tell Gretchen Whitmer that she could not shut down Line 5,” he said. Line 5 has not been shut down, but that’s not due to a lack of effort from Gretchen Whitmer. »
The return of protectionism
But even the natural resources issue was overshadowed last year by evidence that US protectionism is alive and well. In fact, President Biden’s original initiative to encourage Americans to buy electric vehicles only allowed cars and trucks made in the United States.
That proposal, seen by industry and Ottawa as an existential threat to Canada’s auto sector, was superseded by the Cutting Inflation Act in August, with incentives for EV purchases now covering Canada and Mexico.
If a Republican-controlled Congress seeks to reverse Democrat actions, Mr. Biden’s $369 billion in climate and energy spending is likely safe because overturning would require a presidential signature.
In an economic update released on Thursday, Treasury Secretary Chrystia Freeland outlined some of the ways Canada intends to take advantage of US measures, including plans for an investment program in electric vehicles and battery manufacturing, and tax incentives for hydrogen fuel production.
democracy in danger
Political observers in both countries are under no illusions about the state of the Capitol over the next two years as Republicans take control of the Senate and House of Representatives.
The biggest concern for Canadians is the same as for Americans, experts say: the dangers a majority Republican party would likely pose to the world’s strongest and most enduring democracy.
“It’s scary,” said Matthew Lebo, an American politics scholar and chair of the political science department at Western University in Ontario.
He thinks of the most extreme voices on the political right — people like Georgia Rep. Marjorie Taylor Greene, Ohio Rep. Jim Jordan, Arizona Rep. Paul Gosar — taking control of the most important ones.
“It’s not like democracy is slipping. Democracy has evidently already declined in the United States. And the chances of getting back on track with these committee chairs are slim. »