Convoy border blockades had little effect on trade

The economic nightmare that wasn’t? Border blockades had little effect on trade, data reveals | Global News - Max Hartshorn:

April 27, 2022 - "Despite the highly publicized blockades at Ontario’s Ambassador Bridge and Coutts crossing in Alberta, cross-border trade in Ontario and Alberta was up 16 per cent in February, compared to the same month last year, according to data from Statistics Canada. And while some businesses were impacted by the blockades, the trade figures also raise questions about the government’s use of the Emergencies Act – a decision, in part, justified by 'threats to (Canada’s) economic security' brought about by the blockades....

"Demonstrators first blockaded the Coutts, Alta., border crossing on Jan. 29, bringing traffic at one of western Canada’s busiest crossings to a standstill. The initial effect on businesses was severe. 'The first couple days we basically came to a halt,' says Martin Jansen, general manager of the Fort Macleod-based seed processor Arjazon. The company had shipments stuck on both sides of the border. But within a week, Canada Border Services began directing commercial traffic through the nearby Carway and Del Bonita crossings, and Jansen says his shipments made it through....

 "Other businesses appear to have had the same idea. Road traffic along the Ambassador Bridge and Coutts crossings, as well as other embattled border crossings in B.C. and Manitoba, was down 8.8 per cent this February compared to the previous year, according to a report by Statistics Canada.... Only 54 trucks made it over the Ambassador Bridge during the week-long blockade. But at the same time truck traffic along other Ontario border crossings shot up 72 per cent compared to the previous week, nearly making up for the loss.

"Perishable food is sensitive to shipping disruptions since even a short delay can result in unsalable products.... But trade in perishable goods does not appear to have been hampered by the blockade. U.S. vegetable trade was up seven per cent in Ontario, and 66 per cent in Alberta compared to the previous year, according to data from StatCan.

"Cross-border trade between Ontario, Alberta and the U.S. was up for all major types of goods in February, with the notable exception of Ontario’s largest commodity: vehicles and vehicle parts. That was down seven per cent over last year.... Lacking timely deliveries, automakers as far south as Alabama scaled back production, resulting in cancelled shifts and lost wages for workers. A February analysis by the Anderson Economic Group estimated the combined loss to auto industry workers and investors at $375 million.

"Analyst Peter Nagle, of the automotive research firm S&P Global Mobility, notes that cross-border trade in completed vehicles was down this January and February compared to last year. However he believes this decline is largely a result of global supply chain issues that have bedeviled automakers. 'Supply chain shortages have limited overall production across the North American light vehicle industry,' says Nagle....

“'The illegal blockades in our capital and at our borders earlier this year had a significant impact on Canada’s economy,' says Alexander Cohen, a spokesperson for the Minister of Public Safety, in a statement, 'which is why our government invoked the Emergencies Act to end them.' Cohen cites a number of independent and widely publicized cost estimates to support this justification, including a Canadian Manufacturer and Exporters estimate that the Coutts blockade impacted $44-million worth of trade per day.

"Deputy Prime Minister Chrystia Freeland made a similar case in February, stating that 'the Ambassador Bridge has affected about $390-million in trade each day.' According to the Ambassador Bridge website, roughly $400-million in goods are transported across the bridge daily during normal operation. The closure of the bridge did not mean that businesses lost $400 million a day. Ontario’s stable international trade numbers and truck data suggest that most of these goods eventually made it to their destination."

Read more: https://globalnews.ca/news/8770775/border-blockades-trade-impact-data/