Did Canada buy an oil pipeline in fear of being sued by China? | Opinion | The Guardian - 0 views
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hy is Justin Trudeau buying a pipeline? Canada’s government announced yesterday it was planning to purchase the Trans Mountain pipeline for $4.5bn. This pipeline – which transports oil from Alberta’s tar sands to the western coast of British Columbia – is at the centre of a bitter political war that shows no signs of abating.
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So what’s going on? The logic to Trudeau’s action may lie in an obscure and often overlooked agreement called the Canada-China Foreign Investment Promotion and Protection Agreement (Fipa). This agreement, ratified in 2014, was negotiated by the previous Harper government. It was passed without a vote in Parliament. Fipa, which remains in place until 2045, was signed to ensure that China got a pipeline built from Alberta to BC, among other benefits.
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Now he has bought that pipeline, and will have to live with the political fallout, which will likely include protesters, court cases and other acts of civil disobedience. In what might be a strategy to avoid lawsuits from Chinese companies that may result in massive secret payouts, Trudeau’s government may find itself arresting Canadians.