What the US-Canada Border Closures Mean for Canada

Allan Li
Junior Economist Canada
3 min readNov 3, 2020
The border in Lansdowne, Ontario, in March.

With experts predicting the rise of the second wave during the COVID-19 pandemic, tensions between the two great nations, Canada and the US, have increased substantially. Nearly six months ago, Prime Minister Justin Trudeau and President Donald Trump both signed agreements to keep the Canada-US border closed to prevent the spread of COVID-19.

President Trump spoke with reporters, saying, “We’re looking at the border with Canada. Canada would like it open, and, you know, we want to get back to normal business.”

Sources in both countries have confirmed that the border closures would likely have to be continued until at least the end of November.

What Canadian citizens say

A new poll by Pollster Research Co. has found that out of 1000 Canadians surveyed at the end of August, a shocking 90% of respondents agreed with the border closures. This comes at a time where numerous southern Canadian cities are dealing with the massive decline in tourism from the US. However, many believe that staying safe is important to help stop the spread of COVID-19 from the country with the world’s highest case count.

“As much as this hurts — and it hurts — it’s all about short-term pain for long-term gain,” said Jim Diodati, mayor of Niagara Falls, Ont. Niagara Falls is a large tourist attraction and destination for many American citizens. Nearly $1 billion is injected into the Canadian economy every single year just from travel and tourism.

This still means that many Canadians with relatives in America won’t be permitted to exit the country. As well, Canadians who frequently go to the US for cross border shopping will be denied access.

How border closures have impacted companies

Although the tourism industry has been severely affected by the border closures, essential travel is still allowed. This means that imports and exports are still crossing the border. Canada is still shipping aluminum and natural gas (two of its biggest exports) to its neighbor in the south.

Another worry that economists have is the separation of the two economies. Mark Warner, and international trade lawyer, said, “I don’t think we want to have the habits set in with people who are used to working with each other across the border start saying, well, ‘You know, I am only gonna work with my neighbors who are in close proximity’… we want to keep those supply chains, particularly in the service sector going. So, I think that we want to make sure that it isn’t going on forever so that the economy isn’t being seen as becoming ‘separated.’”

Canada and the US have commonly relied on each other to fulfill their supply chains. With the added border closures, many companies may be looking into more domestic suppliers. Although this can be seen as a “benefit” to both countries, too much of this may cause the separation of the economies.

The COVID-19 pandemic has been a wake-up call for most countries, forcing many of them to become more self-dependent. Within this, Canadians need to become more resilient to change, especially when our neighbors to the south are facing the same crisis (if not worse). Learning to balance foreign relations while keeping the most amount of lives safe is how we will overcome this virus.

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