expansion, which was to provide increased access for Canadian oil to the Gulf of Mexico.
The price on carbon also remains a major issue. While Canada’s carbon tax is set to rise to $170 per tonne by 2030, the U.S. does not have a tax. Durbin said there is little political appetite from either party to push ahead with a carbon tax, especially in the face of spiking inflation. “I think a border carbon adjustment would be terrible,” she said. “It’s a tax, it’s a tariff on trade. And when you introduce a tariff, it automatically creates disruptions at the border.”Lilly said signs of protectionism really showed during the pandemic when the U.S. prioritized face masks and other personal protection equipment made in the U.S. to stay in the U.S. Canada responded with 3M opening up plants in Ontario to produce masks here.
“International trade and globalization keep prices low for Canadians, and so we are, on the whole, net beneficiaries of globalization,” she said. “I think that it requires some long-term thinking about what are the essential sectors, how are we going to support them in the moment and are we willing to pay more?”