BINNION: Canada can reinforce bilateral partnership with U.S. and protect its sovereignty

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The Modern Miracle Network believes in the power of oil and gas as transformative drivers of prosperity and human flourishing.

Recent developments, including President Donald Trump’s tariffs and executive orders, have shone a spotlight on Canada’s precarious position in the North American trade dynamic.

If the economic value of oil and gas is removed from the equation, the United States runs a $50-billion trade surplus with Canada. This underlines the critical importance of the energy trade to Canada’s economy, and to the broader bilateral relationship.

Every day, Canada sells four million barrels of oil to the U.S. at a steep discount — over $10 per barrel below the world market price. The U.S. then resells this oil on the global market, pocketing tens of billions of dollars in profit annually and paying billions in U.S. taxes.

A similar pattern exists with natural gas: America imports Canadian gas at low prices, only to export it to Mexico at a premium. This trade dynamic represents a type of carry trade that is lucrative for the U.S. but leaves Canada undercompensated for its vital energy resources.

This lopsided arrangement is not just an economic concern — it highlights Canada’s vulnerability.

Under the current prime minister, the government has aggressively pursued net-zero policies championed by global elites like Mark Carney and organizations such as the World Economic Forum. In doing so, it naively assumed that the world was prepared to transition away from oil and gas, disregarding the irreplaceable benefits these resources provide for human flourishing.

The result? Pipelines that could have bolstered Canada’s economy were blocked, and essential LNG (liquefied natural gas) plants on both coasts were shelved.

Canadians needed those pipelines — not just for economic growth, but to maintain energy security and environmental leadership. Canadian LNG is among the cleanest in the world, yet the Trudeau government’s refusal to develop this resource has paradoxically led to higher global emissions. By preventing LNG development in Quebec and elsewhere, the government has overseen some of the most significant environmental missteps of its tenure.

The tragedy is twofold: Canada misses out on economic growth, and the planet misses out on cleaner energy alternatives.

But the consequences go beyond environmental and economic losses. The Trudeau government has failed in its most fundamental duty: keeping Canadians safe. In his inauguration speech, Trump declared that his top priority was the safety of Americans. By contrast, Canada’s current leadership has left the nation exposed to the whims of a mercurial and transactional U.S. administration. Trump’s tariffs and executive orders are a direct reminder of the strategic blunders that have compromised Canada’s position. Without robust pipelines and LNG infrastructure, Canada lacks the leverage and resilience to withstand external pressures.

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Alberta Premier Danielle Smith is one of the few Canadian leaders who has recognized the risks of entering into a trade standoff with the U.S. from a position of weakness. She understands that saber-rattling is a dangerous strategy, particularly when dealing with someone like Trump. Instead, Smith advocates for showcasing the benefits of the $50-billion surplus that remains once the lucrative oil and gas trade is factored out. This is the right approach — one that emphasizes Canada’s economic importance to the U.S. while fostering mutual respect and cooperation.

The American-Canadian relationship is the most important bilateral partnership in the world. America is not just Canada’s largest trading partner; it is also our closest ally and friend. The Modern Miracle Network calls on all provincial and federal leaders to follow Smith’s lead and champion Canada’s role as a vital trading partner to the United States. This means not only defending our energy sector but also highlighting the immense benefits it brings to both countries.

The stakes are too high for complacency. Canada must rethink its energy strategy to protect its sovereignty, economic prosperity, and environmental stewardship. It’s time for leaders across the political spectrum to recognize that oil and gas are not obstacles to progress — they are modern miracles that power our economies, secure our nations and enable human flourishing.

By reaffirming our commitment to these resources, Canada can rebuild its strength, reinforce its partnership with the United States, and secure a brighter future for generations to come.

– Michael Binnion is the Executive Director of the Modern Miracle Network, whose mission it is to encourage Canadians to have reasoned conversations about energy issues