COVID-19 divide: 'Northern wall' between U.S., Canada could stay up longer than anyone expected - CTV News | Canada News Media
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COVID-19 divide: 'Northern wall' between U.S., Canada could stay up longer than anyone expected – CTV News

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There were no bricks and mortar, no fencing or cement, no cross-border diplomatic skirmish, just two government orders. And that was enough to essentially shut down the world’s longest international border for visitors.

When the U.S. and Canada mutually agreed in March to shut down the border to mitigate the spread of the coronavirus, no one predicted it would be closed this long. There is still no specified date for its reopening, although trade has continued between the countries.

“There’s a closeness that we’re definitely missing, but I can tell you not anyone that I have spoken to here wants that border opened anytime soon. We miss you citizens of the U.S., but we’re not comfortable opening the border,” Bernadette Clement, the mayor of Cornwall, Ontario, said in an interview with CNN.

East to west for thousands of kilometres, in communities on both sides of the national divide, the border closure is redefining not just economic relationships, but personal lives, in ways no one expected.

“This really is going to have a long-term impact on our communities, economically, socially and on all the things that are really important to us,” said Tim Currier, the mayor of Massena, New York, a “sister” community to Cornwall, just several kilometres across the border on the other side of the St. Lawrence River.

No longer. The border is shut tight for any trips that are deemed “non-essential” or discretionary and that includes all recreation and tourism.

BIGGER PAIN ON CANADIAN SIDE OF BORDER

Statistics Canada recently reported that cross border car trips are down about 95% across both sides of the border.

For decades in these border communities, people have crossed the border in both directions every day to attend a school or training program, go on a shopping trip to grab a bargain, indulge a craving for a meal at a favorite restaurant or a last-minute trip to the casino to play the slot machines.

In a way, the border closure has been a victim of its own success. Essential goods and services have continued to flow across the border efficiently and easily with supply chains largely unaffected. Canada and the U.S. maintain one of largest trading relationships in the world, doing about $1.9 billion in trade every day.

While the rules apply equally in both countries, the economic pain has not been distributed evenly on the Cornwall-Massena divide.

“There is no question about the economic impact. We have small businesses that have not reopened, we have some that will never reopen because they rely heavily on Canadian traffic,” Mayor Currier said in a phone interview with CNN.

Mayor Clement says Cornwall is feeling the economic loss of American clientele but with a larger, more dynamic economy, the damage hasn’t been as acute.

And as infection rates climbed in the U.S., diverging from Canada’s flattened pandemic curve, just seeing cars with U.S. plates alarmed many Canadians.

“It has been challenging to keep everybody calm because residents took note of those plates, yes,” Clement said.

Whether in Cornwall’s Walmart parking lot or in its downtown business district, many locals told CNN they preferred the border stay closed for months to come given the higher infection rate in the U.S.

A July poll by Ipsos showed more than eight in 10 Canadians want the border to remain closed until at least the end of the year.

MOHAWK COUNCIL OF AKWESASNE: STRADDLING THE BORDER

“The challenge for us being right on the border is we see the surge in cases in the United States as a whole. Some states have more cases than the entire country of Canada. We have to be cautious about that,” Grand Chief Abram Benedict of the Mohawk Council of Akwesasne said in a phone interview with CNN.

The Mohawk of Akwesasne straddles the U.S. and Canadian borders and its 13,000 residents hold a unique position. They’ve maintained their right to travel between the two countries even during this pandemic.

When presenting their identification cards to prove Indian status, they can cross the border for essential travel in either the U.S. or Canada to shop, bank, go to a doctor or check on family members.

It also means they are exempt from a two-week quarantine when entering Canada.

Benedict says that means those with New York state licence plates are often seen in and around Cornwall. Most Canadians residents now understand they have a right to be there, but Benedict says his community has a greater responsibility to keep everyone safe.

An overnight curfew in Akwesasne is still in place with a ban on travel outside an 80-kilometre (50-mile) radius. Benedict adds that many in his community have been wearing masks long before it was mandatory in Cornwall.

In fact, new infections are low on both sides of the border, but the longer the border stays closed, the more profound the economic impact.

“I’ve got to make up for a 40% hole in my business,” said Todd Papineau, general manager of the Akwesasne Mohawk Casino Resort, in a phone interview with CNN, saying he doesn’t expect Canadians to be back from months.

Papineau says most of his 750 staff have been off work for about five months now, although he is trying to bring back about half of them for a proposed reopening later this month relying on local U.S. customers only.

“The worst-case scenario is this will still be with us this time next year, that’s what I believe; I hope I’m wrong,” Papineau said.

‘IT’S HARDER FOR BUSINESSES’

At Philos Restaurant in Cornwall, U.S. customers were a staple for the family-owned Greek restaurant and pizzeria. After five months, the restaurant just reopened to dine-in customers.

On a recent Friday afternoon, only one table was being served in a dining hall that can serve more than 100 customers. The extended border closure has meant that businesses that rely on U.S. customers are coming to grips with a decline in business for months to come.

“It is harder for businesses. We have fewer customers, and it’s a big change for people working in those businesses because they don’t know what to expect in the future,” said Nancy Page, a manager who’s been working at the restaurant for most of its two decades.

Some border communities, especially in the U.S., are lobbying for a path forward to try to get the border open using what they call a careful, slow, thoughtful process, taking advice from public health experts.

“I certainly respect Canada’s view, but what’s happening in Florida is not happening in New York and New Yorkers are taking significant steps to reduce the likelihood and the chances of infection cases increasing,” Currier said.

Many in Canada’s business community agree with him, arguing Canada should double down on rapid testing and that a two-week quarantine for months to come is unsustainable and will disproportionately impact leisure and hospitality.

“Some sectors have been pummeled and their very existence is at stake,” says Goldy Hyder, president and CEO of the Business Council of Canada adding, “I do think there needs to be a plan to work towards a reopening in a responsible way.”

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Canada’s inflation rate hits 2% target, lowest level in more than three years

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OTTAWA – Inflation finally hit the Bank of Canada’s two per cent target in August after a tumultuous battle with skyrocketing price growth, raising the odds of larger interest rate cuts in the coming months.

Canada’s annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

The slowdown can be attributed in part to lower gasoline prices, Statistics Canada said Tuesday in its consumer price index report.

Clothing and footwear prices also decreased on a month-over-month basis. It marked the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.

CIBC senior economist Andrew Grantham says the latest data suggests inflation is no longer threatening and the Bank of Canada should focus on stimulating the economy again.

“I’m already worried that the economy is a little weaker than it really needed to be to get inflation down to two per cent,” Grantham said.

The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.

Grantham noted that excluding mortgage interest costs — which have been driven up by high interest rates — the annual inflation rate was only 1.2 per cent last month.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.

Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.

“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.

Governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.

“With inflation getting closer to the target, we need to increasingly guard against the risk that the economy is too weak and inflation falls too much,” Macklem said after announcing a rate cut on Sept. 4.

The Canadian economy has slowed significantly under the weight of high interest rates, leading to a declining real gross domestic product on a per person basis.

The unemployment rate has also been steadily climbing for the last year and a half, reaching 6.6 per cent in August.

Macklem has emphasized that the inflation target is symmetrical — meaning the Bank of Canada is just as concerned with inflation falling below target as it is with it rising above the benchmark.

The central began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.

The Bank of Canada increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.

A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.

CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.

The Bank of Canada’s key rate currently stands at 4.25 per cent.

The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.



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One man dead in Ontario Place industrial accident: police

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TORONTO – Police say a man is dead after an industrial accident at Ontario Place.

Toronto police say officers responded shortly after 9:30 a.m. Tuesday to reports that a person was injured by construction equipment at the waterfront

Police say he died at the scene.

Ontario Place is set to be redeveloped under a controversial provincial plan that includes a new privately owned spa and a relocated Ontario Science Centre.

Police say the Ministry of Labour has been notified.

The ministry investigates all workplace deaths.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.



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Teen homicide: Two men charged in Halifax following discovery of human remains

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HALIFAX – Police investigating the 2022 disappearance of a Halifax teen have charged two men following the discovery of human remains.

Halifax Regional Police say 26-year-old Treyton Alexander Marsman was arrested Monday and later charged with second-degree murder in the death of 16-year-old Devon Sinclair Marsman.

Police say a 20-year-old man who was a youth at the time of the crime has been charged with being an accessory after the fact and obstructing justice.

Investigators did not say where or when the remains were found, but they confirmed the province’s medical examiner has been called in to identify the remains.

As well, police did not indicate the relationship between Treyton Marsman and the victim, but they said the accused had also been charged with causing an indignity to human remains and obstructing justice.

Devon Marsman was last seen on Feb. 24, 2022 and he was reported missing from the Spryfield area of Halifax the following month.

This report by The Canadian Press was first published Sept. 17, 2024.

The Canadian Press. All rights reserved.



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