Alberta Energy Export Tax: A Recipe for Canadian Chaos
The idea of imposing an export tax on Alberta's energy resources as leverage against the United States has been proposed by some, but experts argue it would harm Canada more than Trump.
The National Energy Program in 1980, imposed by the Trudeau government, forced much of Alberta's oil to be sold below world prices. This move led to the election of Gordon Kesler, a separatist candidate, and nearly sparked a referendum on separation.
Ontario Premier Doug Ford and former Alberta premier Jason Kenney have supported using energy resources as leverage against the US, while the Sierra Club has also called for an export tax as a way for Ottawa to retaliate.
The proposed 15% tax would raise 'close to $25 billion' per year, according to climate activist Seth Klein. However, this idea is based on flawed reasoning and ignores constitutional limitations.
A Supreme Court ruling in 1980, Re Exported Natural Gas Tax, struck down a tax on exported natural gas as it applied to Alberta's own gas. Section 125 of the Constitution prohibits taxing provincial property, and Alberta owns 81% of its mineral rights.
The province has exclusive say over oil output, thanks to section 92A, and signed the CUSMA treaty, which bans export taxes unless the same tax applies at home. Implying an export tax would cost Albertan producers and ultimately harm the province's economy.