Energy Policy in Canada

1. Depended on NDP support
   1. Created Petro-Canada (an oil crown corporation)

1. 2 price oil system
   1. Export tax
   2. Subsidies for domestic consumption
2. Results in first federal deficit (1974)
3. To protect Canadian oil industries from international shocks/ influence
4. Assumes: rising prices, rising need for exports and that national is better
5. Eventually exchanged for more modest policy, since deficit --> recession. Also, increase in production from subsidies was not successful bc of international oil glut.
   1. Canadian Petroleum Association and Independent Petroleum Association lobbied against NEP

1. To ensure foreign acquisition and establishment of businesses was beneficial to CA

1. Conflict between these two: Ontario is dominant and more industrialized with better natural advantages

1. This was politically necessary since these provinces had the highest populations

1. Encouraged spread of (and assimilation into) metropolitan centers, as opposed to compromising and limiting the power of the centers

1. Disagreed with NEP, wanted provinces to have more power over their own resources
2. Wanted American investment
3. Argued that Ottawa was unwilling to compromise. Alberta gov encouraged development of technical skill and capacity, and advancements in oil sector. Fed interference stopped all this

1. Created disincentive to work
2. Main cause of conflict

1. BNA 109: gives control of land and natural resources to provinces
2. Changes to Constitution: gives overriding responsibilities to fed regarding interprovincial and international trade, gives fed responsibility to stimulate industry in name of national development

1. Territorial
   1. Different regions had different natural advantages
2. Economic
   1. Peripheries depended on subsidies and equalization payments
   2. Central province economies were diversified
   3. Peripheral economies were resource-based
3. Ethno-cultural co-existance
   1. Conflict between Franco and anglo-canadians

1. Continental US-CA energy policy

1. Trudeamanie
2. Character
   1. 1/2 franco, 1/2 anglo
   2. Saw CA as a united front, Idealist
   3. Saw CA as middle ground between US capitalism and Soviet socialism
   4. Very confident in his own views, but open-minded
   5. Catholic: balanced intellectuality and morality

1. Alberta

1. National Energy Program

1. Free Trade Agreement 1988-1994 (CA-US form strong relationship, continentalism)
   1. NAFTA 1994 onwards

Annotations:

• 5 concerns identified: The amount of FDI The amount of US investment relative to other countries The concentration of this investment in certain sectors Lack of investment opportunities for Canadians Implied political dependencies on US 5 recommendations: Restrict all foreign capital Subsidize domestic research and tech Canadian development corp Establishment of FIRA (Foreign Investment Review Agency) New industrial strategy