Unresolved Issues and Management Problems in the Canadian Water Export Debate

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In this paper we examine three unresolved issues surrounding the Canadian water export debate: the pressures behind export proposals, pricing structures and related features, and the role of environmental impact assessment (EIA). The pressures behind export proposals involve a myth of Canadian water abundance, supply and exportable surplus, the perceived marketability of Canadian water and the view that other countries need to augment their existing water supplies.In this paper we establish criteria for evaluating the merits of an export proposal: demonstration that a surplus of water is available for export, the completion of an EIA in Canada and the importing country, an adequate pricing system that produces benefits for the exporting basin, a complete market analysis, and a credible business plan. Any water export proposal must take into account the full costs and the type of pricing structure to be employed in the contract. With full cost accounting applied to the price of Canadian water, demand will remain small and larger diversion proposals will remain uneconomical compared with alternatives. With export proposals raising major scientific and technical questions, the benefits of an EIA are invaluable to governments and proponents. An EIA should address the following questions. Is there an exportable surplus that can be removed without causing unacceptable environmental, socio-economic and cumulative impacts? Will water transported between basins have an unacceptable negative impact on ecosystems, including instream flow in the donor basin and the transfer of exotic species? We conclude that a water export proposal could meet the stated criteria and obtain approval, provide benefits to Canada and the local exporting communities, without incurring unacceptable environmental and socio-economic impacts.