By - Team Kalkine Media
The United States is all set to witness yet another regime change as Democrat leaders Joe Biden and Kamala Harris take control of the White House from the Donald Trump-led Republican administration on Wednesday, January 20. And as this transition takes place south of the border, Canada can’t help but feel some tremors in its own economy.
So ahead of Joe Biden’s swearing-in ceremony as the 46th US president, let’s take a look at what impact his upcoming administration can have on Canada.
Outgoing president Donald Trump was a big fan of more fossil fuel infrastructures and less regulations that moderate them. Under his regime, Canada saw the revival of the Keystone XL pipeline construction that his predecessor Barrack Obama had halted.
Now with Biden coming in, the Alberta government-funded cross-border pipeline is looking at a bleak future in the US once again. Reports have it that nullifying Trump’s permit for its construction is one of Biden’s top agenda as soon as he becomes president.
While Canadian officials are still trying to make a case for the long-disputed pipeline before Biden, his transition documents reportedly say that the incoming administration is not convinced about its benefits.
Biden’s rejection of fossil fuel power stems for his advocacy for climate change. And his support of eco-friendly, renewable energy is something he has in common with the Trudeau government.
While the Canadian oil and gas industry may suffer a substantial impact due to the Biden presidency down south, the renewable energy sector may see some promise.
©Kalkine Group 2020
The former vice president had promised a trillion-dollar investment in renewable power and tech initiatives if he won. He has also shared his plans to rejoin the 2015 Paris Agreement.
Canadian pot companies are waiting with bated breaths to see when Biden fulfils his promise of federally decriminalizing recreational marijuana in the country. The hopes of this legalization step has seen pot stocks rally on North American markets since Biden won the elections in November.
While this could mean a channel for Canadian pot firms to expand into the US recreational weed market, some experts have voiced their concern about where exactly this plan would fit in with Biden’s ‘Buy American’ dream.
The US is Canada’s largest trade partner, importing about 75 per cent of its export materials. After the escalating trade-related tensions that the world saw in the Trump regime, the world is counting on some harmony as Biden takes over.
However, his ‘Buy American’ campaign could be a warning signal for big Canadian businesses looking to bid on contracts from the US government.
Some trade experts believe that if Biden follows through with his campaign promise of prioritizing US-based products and suppliers, Canadian exporters and companies may suffer significantly as they might be blocked from bidding for such contracts.
The suspense around how Biden will impact Canada’s economy will not last longer, as the Democrat leader is hours away from taking his oath as the president. In about a month or two, we may all know the answer.