Border trade resumes as Canada clears blockades

Authorities across Canada finished clearing up some blockaded border crossings on Wednesday, opening the flow of trade.

Experts said it may take months for industries, particularly the automotive and agricultural sectors, to recover from the fallout from weekslong blockades.

The blockades were part of a wider protest movement against vaccine mandates, and other COVID-19 related restrictions, demonstrations that have been dubbed "Freedom Convoy".

Canada's Prime Minister Justin Trudeau opened the door for authorities to take stronger action against the blockades when he invoked the Emergencies Act on Monday. The last of the blockades in Manitoba ended on Wednesday. Other blockades in Alberta, British Columbia, and at the busiest US-Canada border crossing on Ambassador Bridge in Ontario have been cleared as well.

Even though blockades have been cleared, the protest occupation in Ottawa against vaccine mandates and other pandemic-related restrictions headed into its third week with a lot of economic damage that may be felt for months.

Tourism and hospitality industries have already been badly hurt by the pandemic over the past two years and will continue to be hurt by the blockades.

And the broader cost of the protests and blockades, already in the hundreds of millions of dollars, continues to climb.

"The disruptions have caused a threat to our economy and public safety, and they are hurting farmers, small businesses, and our communities across the country," said Canadian Minister of Agriculture and Agri-Food Marie-Claude Bibeau in a statement.

Shipments of livestock were delayed or canceled altogether, and the risk of food being spoiled rose significantly.

For agricultural producers, the blockades represented yet another hit after a year marked by the pandemic, drought, floods, and myriad transportation issues, said the Canadian Agri-Food Trade Alliance.

Huge losses

The auto industry estimated it has lost close to $1 billion.

"Within hours of the trade disruption at the Ambassador and Blue Water bridges, we observed shortages and then slowdowns at assembly plants," said Patrick Anderson, CEO of Anderson Economic Group in Michigan, in a statement.

"Only some of the lost production can be made up given the tightness of the auto industry's supply chain right now, so these are real losses."

Following the protests, the Canada Border Services Agency was forced to stop services for several days at various crossings in some provinces. Most of the $1.7 billion in trade that happens every day between Canada and the US moves through these crossings.

The blockades have increased the costs of food and cars at a time when inflation is particularly high. Statistics Canada reported on Wednesday that inflation in January rose to 5.1 percent, its highest level since 1991.

North America's auto industry may lose as much as $988 million from the blockades. Research firm HIS Markit estimates that $141.1 million in vehicles and parts flow daily through the Ambassador Bridge.

The writers are freelance journalists for China Daily.