If there’s one thing investors hate, it’s uncertainty. Federal bills like C–69 and C–48 devastate Alberta’s economy. Why? Because they drastically decrease investor confidence in Canada’s regulatory process.
No one knows if Ottawa’s going to shut down energy projects today, tomorrow, a year from now, or a decade into the future.
Thus, rather than risking $billions in Canada where the future is uncertain, investors take their capital elsewhere, investing it in stable markets.
That’s the sort of market an independent Alberta needs to be. If Alberta creates a solid, predictable, stable market, it will generate investment and encourage more capital flow into the province. That is why the APP is recommending Alberta take these steps (among others) to immediately stabilize its market post–independence:
- TRADE ACCESS: Alberta must do everything in its power to guarantee absolute free trade with America, Canada, Mexico, and other nations around the world. While new free–trade treaties are being negotiated and signed between Alberta and partnering countries, Alberta ought to pursue a WTO GATT Article XXIV “interim agreement” with the U.S. This would prevent a “tariff shock” during preliminary discussions.
- CURRENCY: The question, and necessity, of an Alberta currency is addressed in a separate FAQ. Nevertheless, it is imperative that Alberta readily adopt a new currency that is internationally recognized, tradeable, and predictable.
- LAW: Existing laws, licenses, and contracts must remain enforced during the separation process. This lowers legal risk and increases political credibility.
- TRANSPARENCY: Publish a transparent formula and timeline for dividing and delegating federal assets/liabilities, pensions, social programs, energy projects, and other engagements.
If Alberta uses these steps to create a regulatory apparatus with minimal uncertainty and maximum predictability, investment will flow into the province, Albertans will increase their quality of life, and the province will flourish.