Nunavut MLAs query territorial government after trade war with U.S. kicks off

Nunavut's finance minister says the territory is considering banning American companies from bidding on government contracts in the wake of the trade war with the United States. 

Responding to a question about whether it would do so from Iqaluit-Sinaa MLA Janet Pitsiulaaq Brewster in the Legislative Assembly on Tuesday, Lorne Kusugak said it was tough to answer – but that the government was considering the pros and cons.

The premiers of both the N.W.T. and Yukon have directed their governments to review procurement policies to reduce or eliminate purchases from U.S. companies where possible after U.S. President Donald Trump slapped 25 per cent tariffs on virtually all Canadian goods this week. 

Canada responded by putting tariffs on $30 billion worth of American goods, and has said it will put tariffs on $125 billion more in three weeks time.

Brewster told the house that the tariffs imposed by Trump are "irrational and indefensible." She also raised the matter of Starlink – a technology now used by many Nunavummiut to access high-speed internet.

"The premier of Ontario announced last month that he was prepared to rip up the province's $100 million contract with Elon Musk's Starlink corporation in the face of the threat of Trump tariffs," said Brewster.

Doug Ford followed through on his threat, but when Brewster asked if the Nunavut government would do the same – Kusugak was more careful.

"We're taking a very close look at that … to ensure that there is no detrimental impact in the care of Nunavummiut in doing that," he said. "Unlike the southern provinces, Starlink might be the only real way to … communicate for the betterment of Nunavummiut in healthcare and so on.

As other jurisdictions, such as Ontario and British Columbia, pull all American liquor from their shelves, Nunavut Premier P.J. Akeeagok announced that Nunavut would do the same.

Kusugak, who is also the minister responsible for the Nunavut Liquor and Cannabis Commission, said it has between $650,000-700,000 worth of inventory that is made in the U.S.

MLAs ask about contract costs

Two other MLAs also had questions for the government about the new tariffs.

Arviat South MLA Joe Savikataaq asked whether the government of Nunavut would increase how much its spending on particular contracts if they grow because of tariffs. 

Community and Government Services Minister David Joanasie responded that the territory was monitoring the situation.

"This has involved looking at our existing project tender schedules and the existing project contracts that, if there's any due increases as a result of the tariffs, what budgets we might have to adjust," he said. 

Iqaluit-Tasiluk MLA George Hickes was also curious about how the Qulliq Energy Corporation's capital plan and procurement activities would be affected by tariffs in the short-term.

In response, John Main, the minister responsible for the corporation, said while they're unable to quantify the impact right now, it's something the corporation is concerned about.

"It's very difficult to see how [Trump's tariffs] would be of any help in terms of looking for ways to do business cheaper or as cheap as possible on behalf of Nunavummiut," said Main.

'They were ready for day one'

Akeeagok said he attended a meeting with the prime minister and other provincial and territorial premiers on Tuesday. Afterwards, he told reporters it had been "constructive" and that everything was on the table in terms of Canada's response to the tariffs. 

"It's important that we stand up for Canadians and that's exactly what we're doing right now," he said.

Speaking with CBC News after question period, Brewster said while she wasn't surprised Kusugak didn't have more substantive responses to her questions, she was encouraged by what she heard.

"I am happy to know that, at the very least, they were ready for day one," she said.