Canada and US trade is a key factor in helping both countries to recover from the losses incurred during the pandemic and making economic recovery easier. However, the ongoing protests by truckers, especially near the border, make things tougher.
The Plight of
the Auto Industry
The auto
industry has already suffered problems like semiconductor shortages and supply
chain chaos during the pandemic. The new threat is now directly impacting thousands
of workers who work in the industry.
Many big names
like Ford Motor, Honda, General Motors, and Toyota have reduced production at
several factories in Ontario and Michigan. So, paychecks are now threatened in
a very real sense.
Ford released a statement on the matter and
stated, “This interruption on the Detroit-Windsor bridge hurts customers, auto
workers, suppliers, communities, and companies on both sides of the border. We
hope this situation is resolved quickly because it could have a widespread
impact on all automakers in the US and Canada.”
It also offers a
fresh reminder of how fragile global supply chains are and how connected the US
and Canadian economies are. After all, they exchange $140 million worth of
vehicles and parts every day.
The Future
No one has the
slightest idea when the protests will end. Protests might likely swell in the
coming days and might spread to the US. If the protests continue to affect
paychecks, workers who have been sent home early will spend less at stores and
restaurants.
Also, the
slowdown in Canadian trade will likely negatively impact New York, Michigan,
and Ohio. There is already a shortage of truck drivers in North America, so the
protests that keep truck drivers off their routes will increase the problems
for the fragile supply chain.
Harsh Actions
The Canadian
authorities have had to take strict actions to control the situation. Many
demonstrators who were blocking a critical border bridge, the Ambassador Bridge
to Detroit, were arrested, and Canadian suggested that they had negotiated a
deal with the truckers who occupied the downtown core of Ottawa for weeks.
After arresting several people and towing a pair of pickup trucks, the bridge
was reopened late Sunday.
Spreading
Unrest
Sadly, the
unrest by the truckers was not limited to Ottawa and Windsor. It has spread to
Saskatchewan and Alberta.
Who are the
Protestors, and What Do They Want?
The protestors are truck drivers who cross the US-Canada border to do their jobs. They oppose the mandatory vaccination requirement, the pandemic restrictions, and the leadership of Prime Minister Justin Trudeau. They are closing the borders to increase pressure on the Canadian government.
Justin
Trudeau’s Stand
According to a government
statement, in a meeting organized on Saturday, Justin Trudeau “stressed that
border crossings cannot, and will not, remain closed and that all options
remain on the table.”
The US
Department of Homeland Security has also warned that American truckers might be
planning a protest convoy that might affect the Super Bowl in Los Angeles
on Sunday. But it didn’t happen.
Sources:
https://www.nytimes.com/2022/02/10/business/economy/canada-protests-cars-automobiles.html
https://www.aljazeera.com/news/2022/2/10/as-us-canada-border-closures-block-trade-governments-eye-action
https://www.cnet.com/news/trucker-protest-over-covid-vaccines-heres-what-you-should-know/
https://www.nytimes.com/live/2022/02/13/world/canada-protests-trudeau-news