Trudeau Should Extend Carbon Price to Imports & Rebate it on Exports

April 27th, 2017

With Justin Trudeau in Regina today, local MP Erin Weir is renewing his call for the federal government to apply its carbon price to imports and rebate it on exports, when it comes into force next year.

“The Prime Minister is visiting a farm. Canadian farmers need to know that his carbon price will reduce global emissions, rather than simply shifting production to countries that do not price carbon,” said Weir, who represents Regina–Lewvan. 

“Creating a level playing field with a carbon tariff and export rebate would also support good jobs at Regina’s steel mill and oil refinery, which are less carbon-intensive than offshore competitors.”

Earlier this month, federal NDP leadership candidate Peter Julian endorsed Weir’s proposal to extend the price on Canadian emissions to the carbon content of imports from countries that do not price emissions.

For a quarter century, Canada has applied the GST to domestic production and imports, but rebated it on exports. Trade agreements would similarly permit carbon border adjustments.

In announcing a national carbon price, Trudeau said, “Because pollution crosses borders, all provinces must do their part.”

“But pollution also crosses international borders,” responded Weir. “Prompting agricultural and industrial production to relocate to the US or overseas could increase global emissions. A carbon tariff and export rebate would remove the incentive to relocate, making carbon pricing better for our economy and for the environment.”