The most widely read magazine for Canadian lawyers
Issue link: https://digital.canadianlawyermag.com/i/50832
opinion B A C K PA GE BY EZRA LEVANT Most gas is not COOL M andatory country of origin label- ling (COOL) has always been a mild form of pro- tectionism. It was invented in the United States during the Great Depression as part of the Tariff Act to give American producers a patriotic leg-up on importers. In 2002, the power- ful U.S. ranching lobby intro- duced a farm bill that contained a new COOL law for meat, to take advantage of the mad cow scare that had besmirched the reputation of foreign beef, includ- ing Canada's. That hysteria is gone, but in 2008 the rules were expanded anyway to cover fruits and vegetables, too. Today U.S. grocery stores are a forest of little signs, with a growing number saying "product of China." The U.S. Department of Agriculture acknowledges it's as much a marketing tool for American producers as it is about food safety. But that's better than a tax or a ban on foreign food. Consumers can make up their own mind about what's important to them, whether it's national pride, fair-trade farming, or just the lowest price. We have country of origin labelling in Canada, too, for everything from textiles to toys. We just haven't caught up to the Americans yet for groceries. COOL laws can be costly and intru- sive for a business. But consumers love the extra information. So some compa- nies positively volunteer extra details, for profit. Think of the premium charged by purveyors of fair-trade coffee. But there's one commonplace prod- uct whose origins neither Canadian nor American consumers are allowed to know about: oil. The crude oil that is turned into gasoline for North American drivers comes mostly from foreign coun- tries — a gallery of rogue states that sumer pressure on refineries to switch to ethical producers, steering business away from the Organization of the Petroleum Exporting Countries and towards Canada. So more money for the country that invented peace- keeping, and less money for the country that invented 9-11. Demand for ethical oil would probably break the regulatory block- ades that have choked off domes- tic drilling in the U.S. But any new production there would still be years away, and surely not enough. Our would surely shock consumers. Which is precisely why gas stations are so averse to COOL. The U.S. produces five million barrels of crude oil daily. But that barely covers a third of American consumption. The rest is imported. Canada is the No. 1 source, supplying nearly two million barrels a day. But another eight million come from less benign places, including Saudi Arabia, Nigeria, Venezuela, and even Russia. How many Americans would know- ingly buy oil from their country's sworn enemies? Right now the only choice customers have at the pump is differ- ent octane levels. Why not let custom- ers choose among different producers too: one pump marked "produced in Saudi Arabia," another for Nigeria, and another for Canada? Canadian oil — the "ethical" oil of the world — might even fetch a premium, just like Canadian conflict-free diamonds do. It's not perfectly easy; some refineries process oil from multiple countries. But how is that harder to do than a list of ingredients on packaged foods? Imagine a gas pump boasting certified, 100-per- cent dictatorship-free oil. Americans, both left and right, would love it. COOL laws for gas would bring con- 54 NO VEMBER / DECEMBER 2010 www. C ANADIAN Law ye rmag.com oilsands are ready to pump right now: conflict-free, human rights-respecting, fair-wage oil that is an environmental Eden compared to the wastelands of Nigeria and Russia. But we must practise what we preach. For we do not have COOL in Canadian gas stations either. Gasoline in Western Canada is made from Canadian oil. But many people in Ontario, Quebec, and the Atlantic region would be shocked to learn their gas comes from imported oil. Canada is a net exporter; but about half of our domestic needs are met with imports. North Sea oil from Norway and the United Kingdom makes up about a third of that. But Canadian refineries also buy from the likes of Saudi Arabia, Nigeria, and Algeria — havens for terrorists, thieves, and dictators. This isn't a call for a new National Energy Program, or tariffs, or boycotts. It's simply a call for consumers to be allowed to know the truth about what they're buying. It's obvious why gas sta- tions selling Saudi product wouldn't want that. But since when do we let oil companies tell us what to do? Ezra Levant, ezra@ezralevant.com, is a Calgary lawyer and author. His lat- est book is Ethical Oil: The Case for Canada's Oilsands. SCOTT PAGE