The G7 Rejects U.S.’ Desire to Renegotiate Paris Agreement (V. Nadar)

 

 

mckenna

Canada’s Minister of Environment and Climate Change reaffirms Canada’s commitment to the Paris Agreement at the G7 Ministerial Meeting on Environment Source: NewEurope

In continuation of last week’s post about the 43rd G7 meeting, the G7 Environmental Ministers and European Commissioners responsible for environment and climate met for the G7 Ministerial Meeting on Environment in Bologna, Italy between June 11 – 12, 2017. The Ministers from the G7 countries, less the United States in light of their withdrawal from the Paris Accord, came together to reaffirm their commitment to the 2030 Agenda and achieving the Sustainable Development Goals (SDG’s).

The goals of the 2030 Agenda are “to end poverty and hunger everywhere; to combat inequalities within and among countries; to build peaceful, just and inclusive societies; to protect human rights and promote gender equality and the empowerment of women and girls; and to ensure the lasting protection of the planet and its natural resources. We resolve also to create conditions for sustainable, inclusive and sustained economic growth, shared prosperity and decent work for all, taking into account different levels of national development and capacities.” The seventeen SDG’s can be seen below:

sustainablegoals

Source: WeForum

In the issued Communiqué, which outlines the meeting and its initiatives, it discusses how the G7 countries will fulfill their obligation to the Paris Accord. The first being achieving the long-term goal of “limiting global temperature increases to well below 2°C, pursuing efforts to limit the increase to 1.5°C” and, secondly, “jointly mobilizing US$100 billion annually by 2020 from public and private sources to support climate action in developing countries.”

However, the footnotes of the Communiqué show the U.S’ unwillingness to cooperate. It states “We the United States of America continue to demonstrate through action, having reduced our CO2 footprint as demonstrated by achieving pre-1994 CO2 levels domestically. The United States will continue to engage with key international partners in a manner that is consistent with our domestic priorities, preserving both a strong economy and a healthy environment. Accordingly, we the United States do not join those sections of the communiqué on climate and MDBs [multilateral development banks], reflecting our recent announcement to withdraw and immediately cease implementation of the Paris Agreement and associated financial commitments.”

Trump

The U.S. refuses to commit financially to the Paris Agreement because President Trump believes it is economically disadvantageous for their country. Funnily enough, on the same day of the conference, Trump did not release a single tweet about the conference, but rather tweeted a Fox News article which announced the opening of the first coal mine during Trump’s presidency. The article discusses how the mine may bolster the local economy in Pennsylvania.

I find the US statement hilarious because the reduction of the CO2 footprint was an outcome during Obama’s presidency and it was a result of a shift from coal to natural gas energy for which he heavily advocated. Due to this shift, in 2013, “energy-related carbon dioxide emissions actually declined 3.8% in 2012 even though the U.S. economy grew 2.8% that year, according to data by the U.S. Energy Information Administration, the statistical arm of the Department of Energy.”

Unfortunately, Trump’s encouragement of coal energy will most definitely not ensure the preservation of a healthy environment and it will increase their C02 footprint to post-1994 levels.

In great contrast, Catherina McKenna, Minister of Environment and Climate Change Canada, released multiple tweets from the conference which showcased her enthusiasm for reaffirming Canada’s commitment to the 2030 Agenda and threw some shade at Trump. Some of her tweets can be seen below:

 

Catherine McKenna also expresses through her tweets her displeasure at the aforementioned footnote left by the U.S. and she rejects Trump’s desire to renegotiate stating that “Paris agreement is not open for renegotiation although we are in the phase of negotiating the rules.”

What does this mean for the environment? Well, as mentioned earlier, the U.S’ reintroduction of coal energy will reverse all of the previous administration’s efforts to lower CO2 emissions and will be detrimental to their environment. For Canada, our environment will improve because McKenna is dedicated to the Agreement and, as her tweet suggested, there may be a price on pollution and ameliorated policies to combat climate change.

US and Canada Bicker, yet Again, About Soft Wood Lumber (by V. Nader)

bicker

Trudeau is clearly displeased with Trump’s anti-subsidy tariff on softwood lumber imports! Photo Credit

 

Last month, on April 24, 2017, President Trump announced that his administration would impose a tariff of up to 24 per cent on imported Canadian softwood-lumber effective September 07, 2017. This, unsurprisingly, evoked disapproval from the Canadian federal government and a joint statement released by Jim Carr, Minister of Natural Resources, and Chrystia Freeland, Minister of Foreign Affairs, which stated, “The Government of Canada disagrees strongly with the U.S. Department of Commerce’s decision to impose an unfair and punitive duty. The accusations are baseless and unfounded.” However, this is not the first time Canada and the United States disagreed over softwood-lumber. In fact, it is one of many dating back to the early 1980s. As pointed out in The Canadian Environment in Political Context, the trade dispute “is arguably the most significant one between Canada and the United Sates and one of the most notable trade disputes worldwide in the twentieth century” (Olive 2016, page 162).

Prime Minister Trudeau’s objection to the tariff can be seen in the following Tweets:

tweet

In the first Tweet, he provides a read out of his phone call to Trump in which he expresses that he “will vigorously defend the interests of the Canadian softwood lumber industry, as we have successfully done in all past lumber disputes with the U.S.”

Shortly after, he urgently speaks with premiers about the issue.

tweet2

 

A week later, he makes it known that supporting softwood lumber producers is a priority across Canada.

The disparate patterns of land ownership in the US and Canada is partly a cause of the dispute. Both the US and Canada have a mixed market economy, but the US’s economic system is based on private ownership whereas Canada combines private enterprise with government regulation. Therefore, “in the United States, the market determines the cost of harvesting most wood because most timber is taken from private land…In Canada, where most timber is harvested from Crown land under provincial control, the price to harvest trees is set by the provinces” (Olive 2016, page 163). As a result, the US accuses Canada of violating the North American Free Trade Agreement (NAFTA) as they are under the impression that Canada’s provincial and federal government unfairly subsidizes the lumber. Canada disagrees because, although the stumpage fees is set by administrative regulations opposed to market competition, the low fees cannot be considered subsidies since the lumber is used in various industries.

I doubt this policy will be effective because it serves to ensure larger profits for American landowners and lumber mills, but to the detriment of American consumers and workers. The joint statement mentioned earlier expressed that the tariff “will negatively affect workers on both sides of the border, and will ultimately increase costs for American families who want to build or renovate homes.” In anticipation of new tariffs, lumber prices have jumped 22 per cent adding nearly $3,600 to the cost of a new single-family home… each $1,000 increase in the median price of a new home makes homeownership unaffordable to 150,000 households.

The US is heavily reliant on softwood lumber imports from Canada because they do not produce enough lumber to meet the nation’s needs. According to the US Department of Agriculture, 33 per cent of the lumber used in the US was imported of which more than 95 per cent came from Canada. Although America is the largest exporter of hardwood lumber (raw lumber), it is too costly for them to produce finished goods (such as softwood lumber) due to high labour costs, hence why they import from Canada. Despite Trump’s interest to endorse protectionism and free enterprise, the tariff can be costly to the livelihood of both Americans and Canadians.

Trump’s desire to renegotiate NAFTA stems from the fact that he wants to ensure that the US fully benefits from the deal. Previously, Trump referred to NAFTA as the “worst trade deal” and wanted to rescind America’s involvement in the agreement altogether, but has decided to renegotiate instead. Since the fees associated with softwood lumber is in a grey area in relation to NAFTA, Trump wants to offset Canada’s low stumpage fees by imposing the anti-subsidy duty. The duty is supposed to ensure that the American forestry industry thrives and that jobs within the US are protected, but it has the potential to do more harm than good as the joint statement revealed. This is part of Trump’s efforts to make America “great again,” although he could very much so be doing the complete opposite.

It can be observed in Trump’s Tweet, which was made three days after his announcement, that he almost threatening both Canada and Mexico by making an ultimatum. It’s either his way or nothing.

trump

This relates to the environment because softwood lumber is an environmentally friendly building material that satisfies a need for more housing without increasing greenhouse gas emissions. For this reason, Canada’s International Trade Minister, Francois-Philippe Champagne, visited China to expand and strengthen lumber trade with the country shortly after Trump’s announcement. Champagne believes “there’s an imperative in China to have more green building material” to combat the issue of climate change. The US knows that they are largest importer of lumber and that the industry is of utmost importance to Canada which is why they are under the impression that Canada will submit to their demands, however Canada is refusing to be bullied and this is seen on Canada Trade’s Twitter page! Only a day after Trump’s announcement, the page made the following Tweets boasting about their softwood lumber trade relations with China and Asia:

 

It is evident that Canada is not willing to settle, once again in this long-winded dispute, and is showing off to the US that they have options (China) and will be more than fine without them. This almost reminds me of an on-again, off-again relationship where a couple fights and tries to inadvertently prove that they can be better off without the other by flaunting their new beau/belle, but secretly want the other to become jealous to get them back. Matter of fact, there should be a reality TV show starring Trump, Trudeau and other related political actors which follows their fun squabbles called Keeping Up With The Soft Wood Lumber Dispute!