Truckers and Protests
What Canada’s recent protests mean for the US
The Truckers are protesting, and Canada is facing massive protests over their vaccine mandate.
To be honest, far better sources than me have covered the causes of the protests, as well as the actions of the protesters and what they’re rallying against. But there’s something often forgotten — what do these protests mean for trade and commerce of Canada and the US?
Both countries are inextricably linked via trade. Canadians purchase US goods and services, and the US responds in kind, and this delicate balance has been one of the greatest strengths of North America. The original NAFTA agreement, as well as the recently renegotiated US-Mexico-Canada agreement were both in favor of simplifying this balance. Make trade easier, decreases costs, and every consumer wins.
And right now, there’s a great big mess of people sitting on one of the most important bridges between the two countries.
The blockade currently sits on the Ambassador Bridge between Detroit and Windsor. It’s a bridge that carries almost a quarter of the trade between the two nations, and the longer it remains closed, the more that supply chain issues in both countries will be affected.
With the bridge closed, auto companies have been forced to decrease their production due to shortages. The bridge carries over $300 million in goods daily, which help run the auto industry. Both Ontario and the Midwest rely on these goods for their economies, and with the protests, the slowdowns have already started, and may only continue.
More worrying, however, is the Canadians' reliance on US agricultural imports. Canada has a very short growing season, owing to its position so far north, and relies heavily on US farmers to keep its population fed. If more bridges are shut down, food shortages could begin, an incredibly dangerous proposition for the Canadian government.
The protests have also exposed a significant problem within the trucking industry. During most strikes or protests, industries generally look for non-striking(so-called ‘scab’) workers. And while reports do agree most in the industry don’t support these protests, the few that have joined, along with a trucker shortage in the months prior, are taking their toll. The slowdowns have only started affecting industries, but if the protests continue could cause serious problems for the economies of the Midwest and Canada as a whole.
This is a bit of a shorter article, but I do hope it gives some insight into the economics affected.
