Adding to the challenges, Canada plans to impose emissions caps on the oil and gas industry, while the incoming US administration talks about imposing tariffs on imports. This could push Canada towards an economic crisis.
Canada’s energy sector contributes significantly to the national economy, with $199 billion in annual exports, of which nearly 90 percent goes to the USA. If the US increases domestic energy production and imposes tariffs on Canadian energy products, it could severely impact the Canadian economy, leading to an oversupply of oil and gas domestically.
Canada’s reliance on foreign oil imports and limited infrastructure for domestic oil and gas transport leaves it vulnerable. The country must focus on enhancing domestic energy security and expanding export capabilities to reduce dependence on the US market and protect against protectionist policies.
The government must prioritize the oil and gas sector by reducing regulations and supporting infrastructure development. It’s crucial to prioritize economic growth over environmental policies to compete in a changing global market.
Failure to adapt to changing economic dynamics, especially with the US adopting protectionist measures, could further harm Canada’s economy. Political decisions that prioritize environmental concerns over economic growth may have detrimental effects on the nation as a whole.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
