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It follows then that the USA also wants to protect its industries, such as timber, oil and gas, and maple syrup, from Canadian producers that are happy to dump
by yostrovs 1mo ago
It follows then that the USA also wants to protect its industries, such as timber, oil and gas, and maple syrup, from Canadian producers that are happy to dump their stuff south of the border for cheaper than US competition.
- badc0ffee 1mo agoThe US sets the price it pays for Canadian oil, a discount from the market price. I don't know about timber, but the US maple syrup industry is healthy, just unable to keep up with demand. I think that's a consequence of geography and the time investment required to get mature trees, not Canada undercutting.
- yostrovs 1mo agoCanadians don't negotiate when selling their oil? US just sets the price? Amazing.
- badc0ffee 1mo agoI don't really know how the discount is built into the price, but it's a result of the fact that only about 10% of the oil Canada produces can make it to a port to be sold to non-US buyers. https://en.wikipedia.org/wiki/Western_Canadian_Select https://en.wikipedia.org/wiki/Western_Canadian_Select
- cwillu 1mo agoThe price is “discounted” as in “it's cheaper than the global market price”, because of the shipping difficulties, but it's not a “discount” in the sense of “americans get a discount because we're nice neighbours and they have a coupon”. A common point of political contention up here are various pipeline issues, precisely because it potentially permit access to more markets, improving the sale price. (However it would also raise the price of gas in Canada for the same reason, with all the implications that comes with that).
- throw0101a 1mo ago> […] from Canadian producers that are happy to dump their stuff south of the border for cheaper than US competition. The USD and CAD are not 1:1, as the CAD is 'lower value', so of course stuff made in Canada will generally be less expensive. (The trade off is that imports are more expensive for Canadians.)