Donald Trump's win could have a big impact on Alberta, from tariffs to the energy sector. James Rajotte, Alberta’s senior representative to the U.S., joined CTV Morning Live’s Kent Morrison to give some insight into what could happen.
This transcript has been edited for length and clarity.
Kent Morrison: A change in power in the United States could have a major impact on our province. Tariffs are a threat for many sectors, with partnerships south of the border, but there's room for energy optimism. There’s certainly a lot of work to be done. Alberta's senior representative to the United States, James Rajotte, is leading that work. First of all, let's get your immediate reaction to the election in the United States. What does this mean for Alberta?
James Rajotte: Alberta exports 90 per cent of our goods to the U.S., so they're our most supportive trading partner. As you mentioned, energy is a big part of that. Eighty per cent of that trade is actually in the energy space. If we look at it, we've got President-elect Trump, we have a Republican Senate. It looks like we'll likely have a Republican House of Representatives again with a slight majority. From an energy point of view, they're very aligned with Alberta in terms of energy security and energy affordability. The affordability of energy was a huge issue in the election during the campaign. Alberta being the number one supplier of crude oil and natural gas to the United States, that puts us in a very good position with respect to exporting our product there and aligning with them. Not only in those areas, but in other areas in energy like hydrogen, carbon capture and overall North American energy security.
Kent: There's a long line of people who want to get some time with this new administration. How do you position Alberta to make sure that you capitalize on that?
James: We've been forming alliances and engaging with both parties over a year, so we have good relationships in both President-elect Trump's cap and in the Democratic side as well. The premier and others in the cabinet have engaged, we've engaged down here with key members of the upcoming administration, but also congressional leaders like Senator John Barrasso from Wyoming. They’re actually Alberta's number one trading partner in terms of their trade. He, respectively, is chair of the Senate Energy Committee. We have a very good relationship with him. But in terms of the Trump administration, you may see governors like Governor Doug Burgum, Governor Mike Dunleavy from Alaska, Governor Burgum is from North Dakota. We have excellent relationships with them formed through the Western Governors Association. As we look forward to the new administration, I think we've got some excellent contacts. There were also people who were in the State Department under former President Trump. We've maintained contacts with them over the past four years as well.
Kent: There’s a lot of talk on the campaign trail from Donald Trump about tariffs. Are you worried about that going forward?
James: I think we have to be concerned about tariffs. This is a very different era. This is not the Ronald Reagan free trade era, where Americans were very open to free trade, they are much more protectionist, and frankly, both parties are. The Republican and Democratic side. Anytime an American politician mentions tariffs or, “buy American,” in Canada, we need to be very nervous. Canada, as a national government, is the lead on those tariff issues, but we're very concerned if they're applied to any products that come out of Alberta. As you mentioned, energy including agriculture, softwood lumber, we have duties there right now. We're obviously anticipating and we're working to ensure that there are no tariffs applied to Canadian products as we head towards January 20. The argument we have to make is, we are so integrated as two national economies. We make things, we build things together. If they want to reduce costs on Americans, the worst thing they can do is put tariffs on any products coming from Canada, especially on energy products.
Kent: Is there any chance of reviving Keystone XL?
James: I'm asked that a lot. I think the proponent of that specific project has said they would not provide that specific project. I think what you will see between the Trump administration and members of Congress, is they will want to talk about enhanced energy infrastructure, because I think they'll want to see more products coming from Alberta, Canada, into the United States. I think our government and the industry itself would certainly participate in those conversations. We'll see where they go over time, but I think there will be more conversations about moving more Alberta products to the United States in more forms. So that would necessitate more energy infrastructure, or maximize the infrastructure we have currently with the United States.
