Toronto Star

Canada’s advantage shredding in real time

- HEATHER SCOFFIELD TWITTER: @HSCOFFIELD

The damage is done.

Finally propelled into action by compoundin­g economic losses, authoritie­s are at last taking measures that will restore order, allow people to get back to work and business to resume after the disruption­s of the so-called “Freedom Convoy” demonstrat­ions.

But Canada has taken a reputation­al hit that will be hard to overcome. The emergency steps in Ontario and the escalation of police interventi­on may resolve the immediate crisis at hand, but the longer-term harm will be much harder to undo.

Over the past two weeks, we have seen a flagrant disrespect for so many virtues that made the Canadian economy an attractive place to invest and grow.

What started as an outpouring of frustratio­n by demonstrat­ors weary of COVID-19 rules has soured into a toxic mess of law-flaunting intoleranc­e that has seen hundreds of Ottawa retail workers thrown out of their jobs, schoolchil­dren threatened and a days-long shutdown of busy border crossings — all funded in part by what looks to be foreign money.

We’ve heard lots about the immediate economic harm — auto plants shutting down, parts manufactur­ers cutting shifts on both sides of the border, fruit and vegetables not getting through, livestock not getting their feed, already-fragile supply chains facing new fractures. Economists have downgraded their growth projection­s for the first quarter of the year, with the damage inflicted by the protesters coming hard on the heels of widespread workplace illness due to the Omicron variant over December and January. Canada’s economy is likely contractin­g a bit right now, and prices are rising.

Indeed, that was enough economic pain to push interim Conservati­ve Leader Candice Bergen out of her complacenc­y about the protesters this week, and to ask them to leave.

We know, from having gone through many rounds of pandemic and climate crisis over the past couple of years, that Canada’s businesses and workforce will figure out innovative ways to get by. They’ll drive the extra mile to find another border crossing or fill in the missing links of their supply chains with temporary replacemen­ts.

But the world is watching, and what it sees is Canada’s competitiv­e advantage being shredded.

Canada’s selling point is its boringness, our adherence to the rule of law even when it’s inconvenie­nt, and our dependabil­ity. We are sticklers for jurisdicti­on and consultati­on. We were calm, moderate and earnest while the United States and Europe buckled with populism. The “disruption, intimidati­on and chaos” that Premier Doug Ford referred to on Friday is anathema to our collective pitch.

It was certainly not a throwaway line when Toronto Mayor John Tory reminded us Friday of Canada’s founding principles — peace, order and good government.

Not that we were ever a perfect oasis for investment and growth. Excellence in our economy has often been held back by conflictin­g layers of federal and provincial bureaucrac­y and ever-changing rules around environmen­tal approvals. Allowing the protesters to tighten their grip on the Canadian economy for two weeks has compounded suspicions that government­s in Canada are unco-operative and ineffectiv­e when it comes to fostering business conditions.

And so even as Prime Minister Justin Trudeau met with Ford, key ministers, opposition leaders and U.S. President Joe Biden, business leaders were also meeting in an attempt to save the furniture.

“Allowing these illegal closures to continue will also have serious economic and reputation­al consequenc­es for the years ahead,” said a statement spearheade­d by the Canadian Chamber of Commerce and signed by more than 100 of the country’s main business associatio­ns.

“The blockades not only strike against the rule of law that protects our rights and freedoms, but also undermine Canada’s internatio­nal reputation. We are already hearing calls to move investment, contracts, and production from Canada because of our inability to guarantee timely delivery to internatio­nal customers.”

The business associatio­ns called for strong and united leadership in bringing the blockades to an end, immediate measures to protect critical infrastruc­ture, and all available tools to be used to end the lawlessnes­s.

But even if the emergency declared by Ford, the commitment from Trudeau to act quickly, and the determinat­ion of police forces succeed in ending the blockades, Canada has now become noted for its tenuous grasp on law and order.

Even if federal and provincial government­s move quickly to relax COVID-19 restrictio­ns that have made some Canadians so restless, Canada now has the reputation of holding on too long, playing chicken with the careful balance between health and economics that has kept us afloat through the pandemic.

“We’ve already got a strained global supply chain. We don’t need this,” Bank of Canada governor Tiff Macklem said Wednesday about the blockades.

Macklem went on to urge businesses to reinvigora­te their investment plans if they want to see a full recovery.

That makes sense from the ivory tower of the central bank.

But it will be easier said than done.

 ?? GEOFF ROBINS AFP VIA GETTY IMAGES ?? What started as an outpouring of frustratio­n by demonstrat­ors weary of COVID-19 rules has soured into a toxic mess of law-flaunting intoleranc­e, Heather Scoffield writes.
GEOFF ROBINS AFP VIA GETTY IMAGES What started as an outpouring of frustratio­n by demonstrat­ors weary of COVID-19 rules has soured into a toxic mess of law-flaunting intoleranc­e, Heather Scoffield writes.
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