Earlier this week Canada extended its ban on flights from India until at least August 21.
The extension of the ban comes amid Canada continuing to ease its coronavirus travel restrictions for the rest of the world.
Denying flights from India is extremely disruptive to both Indians and Canadians alike. India is one of Canada’s most important allies and by far the largest source of new immigrants and international students. Some 20 per cent of Canada’s new permanent residents come from India. Indians comprise 30 per cent of Canada’s new international students. In Canada’s 2016 Census, nearly 1.4 million respondents identified themselves as being of Indian heritage.
Hence, it goes without saying that the flight ban is currently a major challenge for Indians, Indian-Canadians, families, and the Canadian economy.
While health is the main reason Canada introduced the ban, the decision to lift it will likely be influenced by other factors as well.
When making its COVID-19 travel policies, the Canadian government looks at factors such as domestic case counts, the rate of vaccination, as well as case counts and vaccination rates in other countries. It also evaluates variants, their transmissibility, and whether existing vaccines are proven to protect against variants.
In a written statement to CIC News on July 22, the Canadian government explained “While progress is being made, the situation in India is still very serious. This extension of the travel ban is based on scientific evidence and has been put in place to protect Canadians from an increased introduction of the Delta variant, which is prevalent in India.”
While health is the main consideration, an argument can be made that the Canadian government is also influenced by other factors, namely the impact of restrictions on its economy. Canada has stated it will begin to welcome fully-vaccinated tourists from the United States beginning on August 9. This decision comes amid rising COVID cases in the U.S. and that country’s vaccination rate stagnating.
On the other hand, the U.S. has extended its ban on Canadian tourists driving across the border. This means that it was not political pressure from the U.S. that caused Canada to decide to welcome American tourists again, but rather a combination of health and economic considerations.
As mentioned, the rising case count in the U.S. is cause for concern and has resulted in some Canadian media commentators questioning the decision to lift restrictions on American tourists. Conversely, the decision is being celebrated by those with an economic interest at stake, namely the Canadian tourism industry. Prior to the pandemic Canada welcomed 15 million American tourists per year and tourism supported about 10 per cent of Canadian jobs. Given the pandemic has decimated the tourism industry, the Canadian government likely felt significant pressure to reopen its border to U.S. tourists even if there were compelling reasons to keep it closed.
This should give us reason to believe that non-health reasons will play a role in Canada’s decision on India flights.
The pressure will be on from Designated Learning Institutions (DLIs)
Canada does not have any strong special interest groups that lobby on behalf of immigrants. This explains why groups such as Confirmation of Permanent Residence (COPR) holders have faced significant challenges throughout the pandemic. Temporary foreign workers, however, are backed by the Canadian business community while Canadian designated learning institutions (DLIs) advocate on behalf of international students.
International students are a major source of revenue for Canada’s colleges and universities. DLIs played a crucial role in getting Canada to lift its travel restrictions on international students last October. Given that Indians are by far the number one source of new international students, DLIs will remain vocal as they seek to obtain concessions from the Canadian government by August 21, ahead of the start of the academic year when the fast majority of new study permit holders arrive to Canada.
There may also be political pressure
It appears likely that prime minister Justin Trudeau will call a new federal election in the coming months as he seeks to obtain a majority government.
The stakes for the India flight ban may be higher than usual going into the election given the significant influence of Indian-Canadians, who tend to live in the country’s most vote-rich cities. Courting their votes will be key to Trudeau’s electoral ambitions, and he may feel it is worthwhile lifting flight restrictions on India to further encourage them to vote for him.
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Evolution of Canada as a Modern Payments Leader
With Silicon Valley taking most of the tech headlines from the North American continent, Japan being regularly publicized for its leaps in robotic technologies, and the UAE constantly investing in the latest tech, it doesn’t come as a surprise that many forget about Canada as a leader in the world.
However, just because Canada doesn’t command international headlines doesn’t mean that the country hasn’t proven to be incredibly tech-savvy, especially in the realms of payments and money. As a developed market, Canada has long boasted one of the highest credit card penetration rates in the world, at 83 percent (17 percent higher than the United States).
This is the start of a trend that will likely see Canada become the example of how payments around the world will take place, especially as it’s reported that the country will likely be the first to banish banknotes. Already, over 80 percent of Canadian bank transactions are made digitally, with there being many solutions available to the population. Yet, there’s more to come from the world-leading market in modern payments.
Rapid adoption of innovative cashless payment services
While VISA, MasterCard, and American Express still form the foundations of much of Canada’s payments preferences, eWallet and mobile payment solutions have become incredibly prevalent. Both PayPal and Apple Pay boast a strong customer base across the country, with a 2019 survey indicating that over 20 percent of Canadians had the PayPal app, with over 15 percent installing the Apple Pay app.
It shouldn’t come as a surprise that, due to the influx of these once-termed ‘alternative’ payment methods, new industries have quickly embraced them to appeal to Canadians. This isn’t anywhere more apparent than with the online casino industry, with the very best accepting PayPal as well as Skrill, Neteller, Trustly, and the two card providers. By offering these safe and popular methods, players are happy to try out thousands of online games.
PayPal looks to be positioning itself as the leader of a cashless Canada, and yet it’ll be expanding its offering even further soon. In September 2021, PayPal paid US$2.7 billion to acquire Japanese online payments firm Paidy, which specializes in buy-now-pay-later (BNPL) and payments without credit cards. This could further enhance its appeal to the Canadian population.
Growing into an ever-more digital space for money
Despite the rate of adoption of the newer or tech-savvy payment methods among customers, many still experience payment friction. It was found that over half of all Canadians have experienced a vendor not accepting their preferred payment method or there being a limit on the amount that can be transferred with any one purchase. This is why PayPal’s entry into BNPL could enhance its scope in Canada.
The BNPL market is tipped to be worth nearly US$4 trillion by the end of this decade, making it a powerhouse option in eCommerce. It will certainly become popular in less-developed markets, where people want more expensive goods than they can afford outright. However, it also has its place in a market like Canada, which will make all tiers of purchase more accessible to all, particularly if the PayPal rollout gains traction.
Another digital area of finance that Canada is seen to be particularly smitten with is that of cryptocurrencies. The government has created a remarkably crypto-friendly regulatory landscape, helping all kinds of coins to know where they stand, appeal to Canadians, and be used across the country. It’s said that around 1.2 million people (3.2 percent of the population) own cryptocurrencies in Canada already.
It doesn’t come as a surprise that Canada is tipped to become the first cashless nation in the world, particularly with the adoption rate of eWallets and the embrace of even more modern solutions.
Alberta province replaces health minister
The premier Alberta province replaced his health minister in a cabinet reshuffle on Tuesday, as a fourth wave of COVID-19 cases swamped the healthcare system and the government came under fire for mishandling the pandemic.
Hospitals in Canada‘s western oil-producing province are buckling under a surge in COVID-19 cases driven by the highly contagious Delta variant. There are a record number of COVID-19 patients in intensive care, and Alberta has cancelled all non-elective surgeries and discussed transferring patients to other provinces.
United Conservative Party (UCP) leader Kenney and Shandro both face criticism for loosening public health measures much faster than other provinces earlier this year and delaying proof of vaccination requirements as cases started to rise.
“This cabinet shuffle is once again Jason Kenney refusing to take responsibility for his actions and his decisions,” independent lawmaker Drew Barnes, a member of the legislative assembly, told Reuters. “The best thing he could do is resign.”
Barnes was thrown out of the UCP caucus in May for publicly calling for Kenney’s resignation.
Alberta is a conservative stronghold but support for the federal party led by Erin O’Toole slipped in Monday’s election, which some Conservatives blamed on dissatisfaction with Kenney.
On Tuesday the province wrote to the federal government formally requesting more critical care staff and for help transporting patients out of Alberta.
(Reporting by Nia Williams; editing by Barbara Lewis and Sonya Hepinstall)
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