Canada’s critical minerals pitch informed by Trump’s desire for supply: minister

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OTTAWA — Energy and Natural Resources Minister Jonathan Wilkinson says part of why he has been pitching Canada as a source of critical minerals for the U.S. stems from internal discussions held about U.S. President Donald Trump’s desire to access Canada’s supply, which Wilkinson sees as a possible motivator for his statements on the country becoming its “51st state.”

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“This is a strategic vulnerability for the United States vis a vis China, as it is for much of the Western world, just given China’s control of much of the critical minerals around the world, and in particular the critical minerals processing elements,” he told National Post in an interview Friday.

“We certainly, internally, discussed this as one of the potential motivators, but I do think it’s difficult for us to know that with certainty.”

Earlier in the day, Prime Minister Justin Trudeau was overheard by media telling business leaders gathered behind-closed doors in Toronto that he believes Trump to be serious about his desire for Canada to become a state, and that it was connected to his wish to access critical minerals.

Critical minerals, such as nickel and lithium are needed for array of products and technologies, from batteries to electricity and the development of clean technologies. Canada is home to 34 different types of these minerals and metals, according to the federal government.

“I suggest that not only does the Trump administration know how many critical minerals we have but that may be even why they keep talking about absorbing us and making us the 51st state,” the Toronto Star first reported Trudeau telling attendees during a question-and-answer session during Friday’s meeting.

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“Mr. Trump has it in mind that one of the easiest ways of doing that is absorbing our country. And it is a real thing.”

Asked about the prime minister’s comments, Wilkinson said: “I’ve certainly been clear that this can be a motivator.”

“It’s part of the reason why it is a key element of what I have been proposing to the United States, which is this energy and minerals partnership, that Canada could be a source of a number of minerals that China … has already banned the export of to the United States.”

Trump has been making comments about Canada becoming the U.S’s “51st state” since before the inauguration.

It was reported he first did so when Trudeau and Finance Minister Dominic LeBlanc travelled to his Florida Mar-a-Lago estate back last November, after Trump came out with his threat to impose 25 per cent tariffs on Canadian imports over concerns about border security and fentanyl.

At the time, LeBlanc, who was then public safety minister, said Trump made the comment as a joke which he said reflected how they had a festive dinner together.

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Less than two months later, with the president making the comment repeatedly and his threat of tariffs not off the table, ministers — and Canadians — have changed their tune.

“I think lots of people thought he was just joking, but obviously, as he’s doubled down on all of this, it’s become clear that he’s not really joking,” Wilkinson.

He says something more serious may “underlie” those comments.

Still, Wilkinson believes Canada build on its existing collaborations with the U.S. when it comes to critical minerals, but in a way that brings an economic benefit to Canada.

“I am also very clear,” Wilkinson says, “that Canadians have no interest in becoming Americans.”

Friday’s summit, where Trudeau made his closed-doors remarks, was held after he and Trump reached a deal that saw the president say he would hold off on imposing 25 per cent tariffs on Canadian imports and 10 per cent on its energy resources for 30 days, in exchange for Trudeau pledging several new measures to help bolster Canada-U.S. border security.

Trudeau had announced should the U.S. move ahead with its universal tariffs, which Trump has also threatened to impose on Mexico, Canada would retaliate by applying the same rate of tariffs to $155-billion worth of U.S. goods.

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Wilkinson has been among a group of key ministers who have been travelling to meet with business leaders, Republican lawmakers and Trump officials to urge against slapping tariffs on Canadian imports, warning it would also raise prices for Americans.

Returning from his most recent trip, the minister told reporters he believed it was time for a national conversation to be had about building energy infrastructure at a time when premiers were looking to knock down interprovincial trade barriers and addressing “vulnerabilities” Canada has with relying on the United States.

Canada exports nearly all of its crude oil to the U.S, where it is then processed in refineries.

While Wilkinson says while are opportunities to diversify when it comes to liquefied natural gas, that is not the same when it comes to oil.

“I actually think that the Canada-U.S. relationship is so strong that it’s very difficult to see that actually getting fundamentally changed,” he said. “Most of the refineries in the United States that take Canadian crude are set up to use Canadian crude.”

“I do think on the on the issue of oil, I’m more optimistic with respect to that ability to continue the work that we do with the United States … but I would also say that, you know, not even having a conversation about these kinds of things would not be very responsible on the part of (premiers.)”

National Post

staylor@postmedia.com

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