Letter to Justin Trudeau, Prime Minister of Canada - Daines Urges Trudeau to Prevent Canadian Pacific Rail Strike

Letter

We are writing to express our concerns related to the potential Teamsters Canada Rail Conference (TCRC) strike in Canada on the Canadian Pacific (CP) railroad, and the profound impact it will have on our states and the broader US and Canadian economies.

Canada is the United States largest trading partner. At a time when supply chains are already constrained, shutting down North America's essential rail supply chain would create a freight capacity crisis. The Canadian and US economies are facing significant headwinds as we recover from the COVID-19 pandemic. Constricting the supply and transportation of goods will only compound the challenges before us.

Should the TCRC exercise its right to strike, the consequences of a work stoppage will be felt long after workers return to work and service resumes. A work stoppage would create a freight capacity crisis that will have a profound impact on our nation's agriculture and energy industries.

Because of the Keystone XL pipeline cancellation, Canada and the US rely on CP to carry heavy Alberta crude oil to US refineries. Without the ability to move heavy Canadian crude, fuel supply shortages will be exacerbated and agricultural producers who rely on diesel to power their equipment will be forced to pay even higher fuel costs.

Up to fifteen percent of CP's business is fertilizer shipping, and the US relies on Canada to help provide our producers with essential inputs like potash and nitrogen fertilizers. At a time when agricultural input costs are already skyrocketing, major agriculture producing nations are at war, and global food prices are at an all-time high, all steps necessary must be taken to ensure producers have access to the inputs they need.

Producers also rely on CP to move their products to ports in the Pacific Northwest (PNW) for export to the Asian market. Asian markets are currently turning to the US to fill their demand. A work stoppage would cripple our producer's ability to meet the demand, and the US and Canada would lose the opportunity to expand our market footprint throughout the world.

We request you be proactive to avert any sort of disruption and prioritize the free-flow of goods and
services between the US and Canada. However, if a labor dispute cannot be avoided, we urge the Canadian federal government and parliament to act swiftly to end the disruption quickly to avoid further harm to our respective economies.

Sincerely