Canada threatens trade war with EU over tar sands
Canada has threatened a trade war with European Union over the bloc's plan to label oil from Alberta's vast tar sands as highly polluting, the Guardian can reveal, before a key vote in Brussels on 23 February.
"Canada will not hesitate to defend its interests, including at the World Trade Organisation," state letters sent to European commissioners by Canada's ambassador to the EU and its oil minister, released under freedom of information laws.
The move is a significant escalation of the row over the EU's plans, which Canada fears would set a global precedent and derail its ability to exploit its tar sands, which are the biggest fossil fuel reserve in the world after Saudi Arabia. Environmental groups argue that exploitation of the tar sands, also called oil sands, is catastrophic for the global climate, as well as causing serious air and water pollution in Alberta.
Darek Urbaniak, at Friends of the Earth Europe, which obtained the new documents, said: "These letters are further evidence of Canadian government and industry lobbying, which continuously undermines efforts to combat climate change. We find it unacceptable that the Canadian government now openly uses direct threats at the highest political levels to derail crucial EU climate legislation."
http://www.guardian.co.uk/environment/2012/feb/20/canada-eu-tar-sands
I have a vague recollection of seeing this subject last week but cannot locate here. If this is a duplicate just say and I will delete.
= new reply since forum marked as read
"Exploit its tar sands?" But...but...I thought it was all going here and that's why we should have it because the oil's all going here!
Have...have...we been lied to? 
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The current Canadian government seems nothing more than a subsidiary of the international oil industry which finds it more profitable to ship Canadian crude oil out of the country and add value to it through refining operations elsewhere. So complete is the control of the industry over the government that a witness before a parliamentary committee who broached the subject of Canadian energy independence was told to cease his testimony, and the hearing was immediately adjourned by the Conservative Party chairman who presided. http://www.canadians.org/media/council/2007/28-May-07.html
What might the advantages of building an east-west pipeline from the tar sands to eastern Canada be? Of course, there would be many Canadian jobs created by the building of the pipeline, and that would also benefit the government through increased tax revenues. Ports in the east might become oil export terminals instead of import terminals. Canada would likely build more domestic refinery capacity, both to supply its own needs and to export refined petroleum products. That would lead to yet more jobs for Canadians and yet more tax revenue for their provincial and federal governments. And, that would mean better financed public services for all Canadians.
Naturally, the large international oil companies that control most of the Canadian oil industry want to avoid the high taxes generally levied throughout Canada. Better to ship oil to the lightly taxed United States, refine it there, and sell it back to the Canadians or whoever offers the highest bid.
There is another way in which the international oil companies have thwarted Canadian energy independence. The North American Free Trade Agreement (NAFTA) prevents Canada from reserving more its oil production to itself in the event of an emergency. http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/texte/chap06.aspx?lang=en&view=d#Article605 Canada is obliged to maintain the same ratio of exports to total production that prevails in any preceding 36-month period. No sudden cessation or reduction is allowed unless it is due to a decline in total production, something not in prospect anytime soon in Canada. (It's worth noting that Mexico, a major oil exporter to the United States and a signatory to NAFTA, refused to sign such an agreement.)
NAFTA also prohibits Canada from charging a lower price to domestic oil consumers than to those purchasing exports. It's common practice for countries that are self-sufficient in oil to give domestic oil consumers a discount from the world price, in essence, to control domestic prices. Back in March of this year when vaulting oil prices pushed up the cost of refined products such as gasoline, residents in some oil-rich countries hardly noticed. Kuwaitis were paying 81 cents per gallon for gasoline. Saudis paid 45 cents. And, Venezuelans were paying just 6 cents. http://www.dailyfinance.com/2011/03/29/gas-prices-world-high-low-country-pain-pump/
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