OTTAWA —
As the Trudeau government is forced to explain delays rolling out COVID-19 vaccines, some of the world’s economic and health leaders are warning of catastrophic financial consequences if poorer countries are shortchanged on vaccinations.
At a video meeting convened by the Paris-based Organization for Economic Co-operation and Development (OECD) on Monday, Secretary-General Angel Gurria predicted that rich countries would see their economies shrink by trillions of dollars if they don’t do more to help poor countries receive vaccines.
The leaders of the World Health Organization and others also bemoaned the long-term damage of continued “vaccine nationalism” if current trends continue — rich countries getting a pandemic cure at a much higher rate than poorer ones.
It was a message that could provide some political cover for the Liberals, who have been widely criticized for shortfalls in deliveries of vaccines from Pfizer-BioNTech and Moderna while also facing international criticism for pre-buying enough doses of vaccines to cover Canada’s population several times over.
Some international anti-poverty groups have also criticized Canada for planning to take delivery of 1.9 million doses from the COVAX Facility, a new international vaccine-sharing program that is primarily designed to help poor countries afford unaffordable vaccines, but also allows rich donor countries — including Canada — to receive vaccines.
Trudeau and his cabinet ministers on the vaccine file have repeatedly said that the pandemic can’t be stamped out for good if it isn’t defeated everywhere, a point the prime minister reiterated on Tuesday.
They say Canada is a trading nation that depends on the welfare of others for its economic prosperity — especially with the emergence of new variants of the virus in South Africa and Britain.
But their protestations are usually drowned out in the domestic clamour that tends to highlight unfavourable comparisons of Canada’s vaccine rollout with the United States, Britain or other countries.
On Monday, Gurria — the veteran Mexican politician who has led the OECD for 15 years — brought the full force of his political gravitas by offering up a pocketbook argument that eschewed any pretence of altruism.
“It’s a smart thing to do. It is ethically and morally right. But it is also economically right,” said Gurria.
“The global economy stands to lose as much as $9.2 trillion, which is close to half the size of the U.S. economy, just to put it in context ΓǪ as much as half of which would fall on advanced economies, so they would lose around $5 trillion.”
The OECD is an international forum of more than three dozen mainly democratic and developed countries, including Canada, that aims to help foster economic growth and trade. It also conducts comprehensive economic research and issues the world’s most authoritative annual report on what rich countries spend on foreign aid.
Canada’s former finance minister Bill Morneau, who resigned last summer during the WE funding scandal, had said he was leaving politics because he long wanted to pursue the OECD leadership when Gurria departs later this year. In January, Morneau abandoned that ambition, saying he didn’t have enough support among member countries.
On Tuesday, Prime Minister Justin Trudeau said Canada remains committed to helping poor countries cope with COVID-19.
“We continue to work with partners around the world,” he said at a news conference outside his Ottawa residence. “We understand the pressure that every government is feeling to vaccine as many of their citizens as quickly as possible.”
Canada has pledged $220-million to COVAX, and $865-million to the ACT Accelerator, which tries to ensure low- and middle-income countries have equitable access to medical treatments during the pandemic.
But Jorge Moreira da Silva, the OECD’s development co-operation director, said COVAX is underfunded by US$5 billion, while the World Health Organization is predicting at US$27-billion shortfall for the ACT Accelerator.
Dr. Tedros Adhanom Ghebreyesus, the WHO director-general, said 75 per cent of vaccine doses are being administered in 10 wealthy countries.
“It’s understandable that governments want to prioritize vaccinating their own health workers and older people first. But it’s not right to vaccinate young, healthy adults in rich countries before health workers and older people in low-income nations,” Tedros told the OECD forum.
“We must ensure that vaccines, diagnostics and life-saving therapies reach those most at risk and on the front lines in all countries. This is not just a moral imperative. It’s also an economic imperative.”
Trudeau said the government is working hard to vaccinate all Canadians as quickly as possible because of the emergence of the new variants.
“There are real questions about what impacts these variants will have both on the spread of COVID-19 and on the impact of the vaccines,” he said.
At Monday’s forum, a spokesman for the pharmaceutical industry said the bumps and grinds of vaccine delivery to poor countries would be transformed into “a huge success” in the coming months.
“I think it’s dangerous to talk about, you know, this is a huge moral injustice already now because ΓǪ you will have significant rollout to developing countries,” said Thomas Cueni, the director-general of the International Federation of Pharmaceutical Manufacturers and Associations.
“I haven’t seen a single industrialized country, maybe with the exception of Israel, where young and healthy people are vaccinated.”
This report by The Canadian Press was first published Feb. 9, 2021.
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.
