Canada resists pressure to drop vaccine mandate for cross-border truckers

Prime Minister Justin Trudeau is pushing ahead with a vaccine mandate for international truckers, despite increasing pressure from critics who say it will exacerbate driver shortages and drive up the price of goods imported from the United States.

Canada will require all truckers entering from the U.S. to show proof of vaccination starting on Saturday, Jan. 15, as part of its fight against COVID-19.

That could force some 16,000, or 10 per cent, of cross-border drivers off the roads, the Canadian Trucking Alliance (CTA) estimates. Ottawa estimates that five per cent of drivers will be impacted, according to a government source.

The mandate is the first policy measure taken since the pandemic began that could limit cross-border trucking traffic. Trucks crossed the border freely when the border was closed for 20 months because they were considered essential to keep supply chains flowing.

"We don't anticipate significant disruptions or shortages for Canadians," the source said.

Trudeau has championed a strict inoculation policy for civil servants and federally regulated workers, and the fast-spreading Omicron variant of the coronavirus appears to have strengthened his government's resolve to stick with the policy.

Industry groups and opposition parties say it is a bad idea, especially at a time when the Bank of Canada is eyeing its first interest rate increase since October 2018.

Even though the vast majority of Canadian truckers are vaccinated, those who are not "are already starting to quit," said Stephen Laskowski, the CTA's president, adding that the industry is already short some 18,000 drivers.

More than two-thirds of the $650 billion in goods traded annually between Canada and the U.S. are transported on roads.

"Everyone has been talking about inflation. And this is just going to continue to fuel that," said Steve Bamford, chief executive of Bamford Produce, an importer and exporter of fresh fruit and vegetables based in Mississauga, Ont.

The cost of bringing a truckload of fruit and vegetables from California and Arizona doubled during the pandemic due to the existing driver shortage, Bamford said. Fresh foods are sensitive to freight problems because they expire rapidly.

Supply-chain disruptions drove Canada's headline inflation rate to an 18-year high in November, and the Bank of Canada has signalled that it could hike it as soon as April.

"We're going to see prices skyrocket for groceries, for everything, if we see tens of thousands of truckers unemployed," Conservative Party Leader Erin O'Toole said on Thursday, adding there could be "reasonable accommodations," such as regular testing.

Intergovernmental Affairs Minister Dominic LeBlanc attacked O'Toole on Friday for a "lack of leadership" on COVID-19 that "would only force more lockdowns and put Canadians at greater risk."