WASHINGTON - Imposing tariffs on imports from countries that allow greater greenhouse gas emissions than the United States will jeopardize trade and prosperity, Canada's environment minister warned Wednesday as congressional leaders debate a bill that includes such measures.
"They would constitute arbitrary discrimination," Jim Prentice told the Council of the Americas conference.
"They won't work and they threaten constructive negotiations ... trade protectionism in the name of environmental protection would be a prescription for disaster for both the global economy and the global environment."
The tariffs, known as border carbon adjustments, are included in a draft climate change bill currently being debated by Congress.
Prentice said they amount to "a thinly disguised restriction on trade and an impediment both to wealth creation and to the attainment of our collective objective, which is to address greenhouse gas emissions and to reduce them."
His remarks reflect growing tensions between Canada and the U.S. on climate change, a situation one environmentalist described Wednesday as "deep denial" on the part of the Conservative government.
Recent complaints from Ottawa that California's low carbon fuel standards unfairly discriminated against Alberta's controversial tarsands fell on deaf ears. In the meantime, Prentice has been spending time in Washington to discuss concerns about the U.S. climate change bill with top American officials.
The bill would allow the U.S. to demand foreign manufacturers pay a tax to account for carbon included in products imported into the United States.
American steelmakers have bitterly complained their costs will rise and the U.S. market will be flooded with cheap imports if they are forced to adhere to tough new hydrocarbon emissions standards.
Prentice's speech on Wednesday comes just a few weeks after an Environment Canada greenhouse-gas inventory showed Canada's total emissions have taken off again after a slight dip a few years ago, thanks in part to the oilsands.
"Long-term growth remains significant," said the report that found Canadian emissions are 33.8 per cent above Canada's Kyoto commitment.
Canada's environmental fall from grace "has been deep and embarrassing for Canadians," said Matt Price of the Environmental Defence organization
"The federal government is seeking to avoid accountability for growing tarsands emissions, in a nutshell," he said. "Americans are potentially going to be demanding some kind of accountability from their trading partners; they understandably want a level playing field."
Speaking to reporters after his speech, Prentice deflected questions about what his U.S. counterparts have been saying about the tarsands in recent weeks.
"As we've said, Canada has been and will continue to be an environmentally responsible producer of hydrocarbons," he said.
"We know that we need oil; under any scenario we will continue to need hydrocarbons. We need to be more responsible globally in terms of how they're consumed ... Canada will be at the forefront."
Ron Kirk, the top U.S. trade representative, recently provided some hope for the Conservative government - he downplayed the notion that President Barack Obama's administration would implement the carbon border tax on imports.
Kirk penned a letter to a group of congressional Republicans, assuring them that the administration's energy and climate policies will not violate the country's international trade obligations.
"The administration ... does not support any specific measures, including border measures, at this time," the letter read.
Energy Secretary Stephen Chu suggested this winter that the U.S. wouldn't rule out using tariffs and other trade barriers to pressure other countries, especially India and China, to cut back on emissions.
Despite Kirk's reassurances, Price said, the writing is on the wall for Ottawa when it comes to greenhouse gases.
"I characterize it as deep denial," Price said of what he called the government's repeated attempts to avoid accountability on the oilsands.
"Canada is fighting a losing battle and we're being dragged, kicking and screaming, towards progress."
