Ambassador Bridge blockade brings major economic artery to standstill, exposes Canada's fragile trade infrastructure - The Globe and Mail | Canada News Media
On any given day, the Ambassador Bridge – the 2.3-kilometre steel span that ties Windsor and Detroit – carries upwards of 10,000 freight trucks between Canada and the United States.
Auto parts moving from here to there and there to here, produce and meat carried in chilled trailers, electronics and other things we typically take for granted, all of it going to businesses and consumers on both sides of the border. It’s $300-million worth of goods per day, give or take, shuttled across a hulking teal arc that is otherwise invisible to the rest of the country.
Then suddenly on Monday, all of that hustle and bustle of commerce ground to a halt. Cars and trucks lined up with no end in sight, the traffic marshalling on either side. Just like that, a few dozen cars, pickup trucks and big rigs stopped the flow through Canada’s most vital economic artery.
Exactly how a protest that has displayed the hallmarks of a glorified tailgate party brought a significant chunk of Canada’s major economic artery to a standstill and forced emergency bilateral talks between President Joe Biden and Prime Minister Justin Trudeau is at once comically absurd and deeply troubling.
It also reveals how much more fragile Canada’s trade infrastructure is than the pandemic-related supply chain crisis has already revealed.
As the mayor of Windsor put it starkly and succinctly this week: “You have 100 people who are holding hostage part of our national economy.”
Regardless of how the blockade unfolds in the coming days, the length and severity of the impact on the economy has led many to wonder why police weren’t quicker to clear the group at the start of the week and why politicians have struggled to contain it.
The protest’s roots certainly suggested little in the way of co-ordination and forethought.
By some accounts from protesters, the Ambassador Bridge blockade started with a rumour that a convoy of 300 tractor trailers, similar to the fleet that has crippled downtown Ottawa for weeks in what began as a protest about vaccination mandates, was on its way to Windsor.
That prompted a line of cars and trucks festooned in Canadian flags, as well as Stars and Stripes, pro-Trump flags and expletive-laced anti-Trudeau flags, to crawl up and down Huron Church Road, which leads to the bridge, in support of the approaching trucker convoy.
The convoy never arrived.
“We were going along like a line of ants and at some point somebody stopped and that’s where we set up,” said Sami Mandalawi, a Canadian veteran who has spent the past week camped out in his Toyota Rav4 along with about 80 other vehicles and 100 to 400 protesters.
Almost immediately, many in the logistics and auto industries began to warn the protest could wreak havoc, although neither police or political action followed.
Politicians at all levels pointed fingers at each other while a backlog of deliveries piled up on both sides of the border.
The episode has provided ample fodder for partisan attacks. Critics of Ontario’s Progressive Conservatives took every opportunity to blame Premier Doug Ford for the mess, while those opposed to the federal Liberals said it was all Mr. Trudeau’s fault.
One thing is now clear. The importance of the Ambassador Bridge, and Canada’s apparent exposure to its limitations, can no longer be ignored.
In 2020, about $111-billion in goods crossed the link, equal to 17 per cent of trade between Canada and the United States that year, according to a 2021 report from Transport Canada. On an average day, the bridge handled about $300-million in cross-border trade. And that was during a rough year for trade – and the economy at large – due to the onset of the pandemic.
The auto industry in particular looms large. In December, about half of Ontario’s $2.2-billion in imports from Michigan were in vehicles and auto parts, based on figures from Statistics Canada. It’s not uncommon for a single part to cross the border several times on its way to completion, evidence of the complex supply chains under the North American trade pact.
The auto makers are “the ones most immediately impacted” by the closure, said Ambarish Chandra, an economics professor at the University of Toronto. “But Detroit-Windsor is used by companies across North America, whether they’re shipping furniture or lumber or beer or food.”
Many trucks are being diverted to the crossing between Sarnia, Ont., and Port Huron, Mich., around 100 kilometres north of the Ambassador Bridge on the American side. In 2021, around 850,000 trucks crossed into the U.S. from Sarnia, or 60 per cent of the volume from Windsor. Delays at the Sarnia crossing were running about three hours for commercial truckers on Friday afternoon.
There’s inherent trouble in being so reliant on the Ambassador Bridge – nearly a century old and privately owned by the billionaire Moroun family – for such a large chunk of trade, said Prof. Chandra, who has long worried about disruptions.
“My thinking was more, there could be infrastructure damage, a natural calamity, earthquake or terrorist attack,” he said. “I didn’t foresee this sort of struggle. Closing that one bridge is sort of calamitous, especially the longer it goes on.”
By Thursday, the makeshift encampment featured tents, couches, BBQs and a DJ blaring classic rock tunes. That night, the children of some protesters played in a bouncy castle and on trampolines.
The presence of the children has sparked sharp criticism on social media. Many accused the group of using the children as human shields, particularly after a photo of a dozen kids standing hand in hand across the road went viral.
The children’s involvement has also made police plans for removing the protesters more complicated.
As the protest unfolded over the week, the absurdities of the situation mounted.
On Friday, as rain and sleet fell on the scene, one protester complained aloud that a pair of couches someone had brought “make us look lazy,” so several men hauled them away to the back of a pickup truck.
At one point, as rumours of an impending crackdown by police spread and a hearing got under way on an application for an injunction to end the protest, the group agreed to move trucks, camper trailers and cars out of one lane as a “goodwill gesture.”
If the goal was to head off the injunction, it failed. Windsor police warned drivers that the lane from the bridge was not open.
The gesture raised the ire of some protesters. One irate man parked his truck in the empty lane screaming at others that they should “hold the line.” He was eventually told by the rest of the group to move.
A single lane would have made little difference to the economic crisis the blockade has brought on, says John D’Agnolo, president of a UNIFOR local that represents 1,700 employees at two Ford plants. Both plants, along with several other factories, had been forced to suspend activity due to parts shortages.
Mr. D’Agnolo said while it’s been difficult to see some unvaccinated long-time workers face the possibility of losing their jobs over vaccine mandates, the protesters have taken things too far. “This has been a nightmare for the industry,” he said. “This is starting to hurt people’s families. The protesters want to end the mandates by shutting down the bridge, but it’s shutting everything else down.”
Many protesters said they were aware the blockade has caused problems for other workers, but defend their actions by pointing to the widespread economic shutdown in 2020 as COVID-19 spread across the world.
“What about all the businesses the government destroyed, what about the effect on children’s IQs, what about all the lives they destroyed,” Mr. Mandalawi said. “We’ve formed an effective constraint on the flow of traffic that’s sending a message to the federal and provincial governments to stop these mandates.”
Another message was on the minds of some protesters, who include a large evangelical and Mennonite contingent, and that was a religious one.
Among four men taking a break from the protest in the nearby McDonald’s, discussion about the aims of the protest soon devolved into complaints about abortion and what they saw as society’s abandonment of religion. Mr. Mandalawi said he would not answer “to anybody but God.”
In the coming weeks and months, Canada’s political and law enforcement leaders will face difficult questions about why they were so paralyzed in the face of a ragtag clutch of protesters, and how they will safeguard the country’s roads and trade paths against the whims of more unconventional actors.
In the meantime, Mr. Mandalawi vowed on Friday afternoon the group would not leave until vaccination mandates were removed or police took them away in handcuffs. “We will be here as long as it takes,” he said.
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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.