The Canadian Manufacturers & Exporters association is calling for an immediate end to the trucker blockades at the borders, saying some businesses in Alberta’s energy sector are just days from shutting down.
The CME said the blockades, including the one at Coutts, Alta., mean critical supplies like steel and electrical components are sitting at the border, taking longer to arrive as truckers try to bypass the protests or orders are being cancelled altogether.
Vice President David MacLean said it’s having a big impact on Alberta’s oil and gas manufacturing sector and our economy overall.
“We estimate that the impact on that is about $600 million over the last two weeks, about $44 million a day crosses the border in either direction,” said MacLean.
“The impact on Alberta’s economy is significant, both for manufacturers locally and for exporters. The U.S. is our largest market so it’s critically important to get that blockade cleared.”
2:19 Alberta border blockade remains adamant, demands nationwide mandates lifted
Alberta border blockade remains adamant, demands nationwide mandates lifted
He said time is of the essence.
“If manufacturers can’t provide the materials needed in oil and gas then ultimately it’s going to impact our biggest sector which is our energy industry… it’s days not weeks before we start to see shutdowns.”
The CME and Canadian Trucking Alliance have written a joint letter to the federal government, calling for action to end the stand-off.
“Our nation’s truck drivers, who are caught up in these blockades are at personal risk, and the manufacturers that rely on trucking services are being forced to shut down,” the letter reads.
“We must restore Canada’s image as a good place to invest and do business and ensure our trucking and manufacturing industries continue to thrive.”
MacLean said the groups met with Canada’s transportation minister this week and have been assured the government is aware of the magnitude of the impact.
1:39 Alberta cattle farmer’s beef with the Coutts blockade
Alberta cattle farmer’s beef with the Coutts blockade – Feb 3, 2022
Alberta’s cattle industry is hurting, too.
With 80 per cent of Canadian beef produced here, the president of the Canadian Cattlemen’s Association is calling for the protest to end.
“I believe it’s gone too far now. It’s starting to disrupt trade, it’s starting to disrupt commerce,” said Bob Lowe.
On Friday, Ontario Premier Doug Ford declared a state of emergency, in response to the ongoing illegal occupation in Ottawa and barricading of the bridge connecting Windsor and Detroit.
The Ontario Superior Court also granted an injunction preventing protesters from blocking the Ambassador Bridge.
Alberta’s government doesn’t plan on following Ontario down the same road.
2:08 Trucker protests: What are the economic impacts of the anti-mandate demonstrations?
Trucker protests: What are the economic impacts of the anti-mandate demonstrations?
A statement from Premier Jason Kenney’s press secretary said the government is leaving enforcement and operational decisions to Alberta RCMP.
“These blockades need to end, period, and the government has made it clear that that is our position,” Justin Brattinga wrote in an email. “Blockading critical infrastructure like highways is against the law, and Alberta has given the RCMP the tools they need to end the blockade, including the Critical Infrastructure Defence Act.”
Earlier in the week, acting Justice Minister and Solicitor General Sonya Savage said the province was looking into a civil injunction against those barricading the border crossing at Coutts.
But as of Tuesday, the province had not applied for an injunction.
“Right now, we don’t see the necessity of doing so, at the present time – the situation is evolving,” she said Tuesday. “But applying for an injunction is an additional tool that we could bring if it would help bring a conclusion to the blockade.”
The northbound and southbound lanes at the Coutts-Sweetgrass border crossing remain closed.
–with files from Global News’ Heather Yourex-West and Adam Toy, and The Canadian Press
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
