Canada might start a trade war with EU

Canada has threatened to start a trade war with EU for its role behind singling out oilsands crude as dirty oil. According to a few documents, Canada’s ambassador to the EU has made it clear to the European authorities that Canada might have to consider an international trade challenge to fight the Europe’s proposed Fuel Quality Directive.

David Plunkett, Canada’s ambassador to the EU, said: “If the final measures single out oilsands crude in a discriminatory, arbitrary or unscientific way, or are otherwise inconsistent with the EU’s international trade obligations, I want to state Canada will explore every avenue at its disposal to defend its interests, including at the World Trade Organization.”

It seems like European Union authorities are determined to vote Thursday on the draft law that would hit an elevated carbon-emissions value on bitumen-derived fuels, in comparison to the more conventional crudes.

“Canada will not accept oilsands crude being singled out in the Fuel Quality Directive as an entirely separate feedstock from other crudes which are bundled together under a single default value,” Plunkett writes Connie Hadegaard, the EU’s commissioner for climate action.

At present, the amount of Canadian oil traded with Europe is modest. Canada alleges a ban or a restriction would seem as an added impediment in the success of Keystone XL pipeline project, which would connect oilsands crude to the U.S. Gulf Coast.

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