Biden has been saying for months that as part of his climate agenda, he would cancel the project. But the decisive speed of his executive order gave Canada no right to reply.
Even Republican Senator Chuck Grassley, who is behind the Keystone XL pipeline, tweeted that the executive order amounted to a slap in the face to Canada.
“This is a realpolitik moment, it is a reality check that America is always representing US interests and it is about time we did the same in Canada,” said Goldy Hyder, president and CEO of the Business Council of Canada, in an interview with CNN.
Biden’s actions are an opening salvo to America’s allies; a clear indication that while the new president is determined to mend old relations, a cunning, calculated self-interest rooted in the domestic political agenda will shape his foreign policy.
Biden called Canadian Prime Minister Justin Trudeau on Friday in his first call to a foreign leader.
A government source who was briefed on the call described it as “warm and friendly” and substantive. Both leaders agreed that fighting the pandemic will be their top priority.
In private, both men reiterated their comments about the cancellation of the Keystone XL pipeline. Trudeau is said to have told Biden he was disappointed and that it would take jobs on both sides of the border.
Biden said he is delivering on a campaign promise.
“We’re relieved that rates aren’t being announced by tweets, but I think beyond those things that are changing, the fact that US politics as such hasn’t changed that much,” Hyder said.
During the telephone conversation with Trudeau, Biden underlined his commitment to multilateralism.
The reading also stated that “the prime minister and president agreed to consult closely to avoid measures that could limit bilateral trade, supply chains and economic growth”.
But earlier Friday, Trudeau was clearer and more realistic about Biden’s approach, especially when it comes to trading.
“It will not always be a perfect alignment with the United States, that’s the case with a particular president, but in a situation where we are much more aligned with values, with focus, with work that needs to be done to give everyone opportunities as we build a brighter future, I really look forward to working with President Biden, ”Trudeau said at a news conference on Friday.
“Buy American” approach can test relations with allies
But those “values” will be tested again next week when the Biden administration sets out its priorities for a “Buy American” approach to the economy, an approach that some in Canada believe will lead to increased trade protectionism.
“Buy American will be the next big test,” Hyder said, adding that it will be a challenge for Canada and other allies.
“What’s good for America is strong trade relationships, energy security, reliable partners and allies who can be there for you, right? We have to defend ourselves for that,” Hyder said.
But making that case in Washington’s hyperpartisan atmosphere will get more complicated as the US tries to recover from a debilitating pandemic.
Before and after his election, Biden promised to tighten the ‘Buy American’ rules. This is another campaign promise that Canada could erase again and wave to other allies as well.
Biden has proposed hundreds of billions of dollars for things like infrastructure projects that would be carried out using mostly American raw materials and products.
The “Buy American” campaign could still receive the legal backing needed to make it enforceable. That, in turn, wouldn’t distinguish it from an “America First” doctrine.
European Commission President Ursula von der Leyen welcomed Biden’s inauguration on Wednesday by declaring in a speech that “after four long years, Europe has a friend in the White House.”
But at a press conference this week, Charles Michel, President of the European Council, seemed to take a more pragmatic approach.
“We have our differences and they will not magically disappear. America seems to have changed, and how it is perceived in Europe and the rest of the world has changed as well,” Michel said, adding that Europe would defend its interests.
Canada will likely be the first ally to vigorously defend its interests, no matter how warm the relationship between Trudeau and Biden.