Steve Scherer

OTTAWA, (Reuters) – Canadian Prime Minister Justin Trudeau continues to push for a mandate vaccine for international truckers despite growing criticism from critics that it would exacerbate shortages of drivers and increase the cost of imported goods from the United States.

Canada will demand that all Canadian truckers arriving from the United States show proof of immunization starting Saturday.

According to the Canadian Trucking Alliance, this could result in 16,000 drivers being forced off the road, which is 10%. A government source estimates that 5% will be affected.

It is the first measure to curb cross-border trucking since the epidemic began. Because they were essential for maintaining supply chains, trucks crossed the border without restriction when it was closed for twenty months.

The source stated that “We don’t anticipate significant disruptions” or shortages in Canada.

Trudeau championed strict inoculation policies for federally regulated employees and civil servants. The rapid spread of Omicron, a variant of coronavirus, appears to have strengthened Trudeau’s government’s determination to continue with this policy.

Opposition parties and industry groups say this is an ill idea at a moment when the Bank of Canada plans to increase its interest rates for the first time since October 2018.

Stephen Laskowski, chief executive and president of CTA said that while the majority of Canadian truckers are immunized, others are “already starting to quit,” adding that 18,000 of them are in shortage.

Roads account for more than half of the C$650billion ($511billion) worth goods that are traded between Canada and America each year.

Everyone has been discussing inflation. This is going to keep fueling that,” Steve Bamford (chief executive at Bamford Produce), an Ontario importer/exporter fresh fruit and vegetable company, said.

Bamford explained that truckloads of fruits and vegetables were more expensive than ever due to the driver shortage. Because fresh foods expire quickly, they are delicate to freight issues.

Canada’s headline inflation rate reached an 18-year peak in November due to disruptions within the supply chain. And, now, the Bank of Canada is indicating that it may raise it as soon April.

According to Erin O’Toole of Conservative Party Leader, “We’ll see grocery prices go up if truckers are unemployed in tens of thousands,” she said Thursday.

Dominic LeBlanc, Interprovincial Affairs Minister, attacked O’Toole Friday over a lack of leadership on COVID-19. This “would only force more lockdowns” and “would put Canadians at greater danger.”

“KEEP ON TUCKING”

When asked about accommodations for drivers who are not vaccinated, Canada’s Health Ministry did not respond.

Canada’s border agent responded to a Reuters query and stated that any unvaccinated truck drivers not from Canada would be returned at the border on January 15, potentially causing delays at cross-border crossings. Canadian drivers can be permitted back in the country but must be quarantined for 14 days.

The agency stated that vaccinated drivers would be permitted to enter and will not have to undergo a pre-arrival molecular corevirus test.

Biden’s administration wanted truck drivers in companies employing 100 people or more to get vaccinated. This policy was challenged by the Supreme Court.

The November increase in food prices in Canadian shops was 4.7% compared to a year ago, which is the biggest jump in seven years. Fresh vegetable prices also rose due to rising shipping costs.

Jimmy Jean, Desjardins Group chief economist, stated that there will be an impact on inflation as well as the availability of goods for sale. He also said that the mandate might trigger price rises, which could prompt the central bank’s to increase rates faster than anticipated.

Joseph Sbrocchi is the general manager at the Ontario Greenhouse Vegetable Growers Association. He stated that “This isn’t the time to make it a zero-sum game” for Canadians, especially during winter when so many fresh foods are imported.

Derek Holt is vice president capital markets economics for Scotiabank.

He said that he would continue to comply with vaccine mandates, and warned there were “bigger costs for the economy” and the “health system” if fewer people are vaccinated.