The Canada-based Automobile Parts Manufacturers Association is reaching out to American trade and industry officials in the White House this week to alert them to the potential pitfalls of a “vaccination gap” developing between the nations.
The United States currently is vaccinating its population at nine times the rate in Canada.
“This is of real concern to us,” said APMA president Flavio Volpe, whose membership is largely concentrated in southwestern Ontario’s automotive supply chain.
“It appears that the Americans may reach their vaccination targets by April, three to six months ahead of us.
“We are economically integrated and any inequity in mobility will cause issues for management of cross-border businesses. We are planning to engage the new administration in Washington on this shortly, with specific regards to aiding Canada (with COVID-19 vaccines) to close the gap in late spring.”
Volpe said the APMA will emphasize the significant Canadian investment in the U.S automotive sector by Ontario’s automotive suppliers operating over 120 plants with about 45,000 employees in 18 states.
The APMA will also contact each newly elected member of congress or senator in those states to ensure they’re aware of the economic benefits of a synchronized approach to vaccination and the border re-opening.
We’re trying to work the other side, that it’s in American interests to align with us.
He added it’s also in the U.S. government’s interest to help supply vaccines to its North American trade partners to protect American citizens. Americans travel to Canada and Mexico far more than the rest of the world.
“We’re trying to work the other side, that it’s in American interests to align with us,” Volpe said.
“For instance, we’re getting our supply from Pfizer from a plant in Belgium, but there’s a large Pfizer plant in Kalamazoo, Michigan. What we’re looking at is trying to sync the countries in terms of freer movement.
“Otherwise, it’ll be a challenge dealing with specialists and executive teams moving back and fourth across the border working in plants and launching products in North America.”
A Dec. 8 executive order by former President Donald Trump forbids the shipping of U.S.-produced vaccines to other countries until the domestic population is vaccinated.
Volpe said he’s seen reports that at least 250-million Americans will have received vaccinations by April.
“We risk being left behind,” Volpe said.
“American divisions of companies have an opportunity to take on roles during this gap period that may have been the responsibility of Canadians or Mexicans. Anytime you shift a responsibility, you risk not getting it back.”
Volpe said the APMA is trying to get ahead of the issue by using the U.S. government contacts it built up during the United States-Mexico-Canada Agreement negotiations. He added the APMA’s efforts are in addition to the Canadian government’s approaches to the new Biden administration.
“I expect a warm reception,” said Volpe of what type of response he expects from the Americans.
“Once they take care of their domestic concerns, there is no real Canada-U.S. border (in trade) between us. It’s in the U.S. government’s interest to have Canadian specialists and executives visit their plants too.”
It’s not just advanced manufacturing operations that are fretting over the implications of the vaccine gap.
The topic was also raised at Wednesday’s virtual meeting of Ontario’s Chambers of Commerce.
“Ontario’s chambers are very concerned,” said Windsor-Essex Regional Chamber of Commerce President/CEO Rakesh Naidu. “We have a task force working on this.
“Every day the border is closed we’re losing half a billion dollars off our GDP. The vaccination gap is growing daily and delays in vaccinations delay the safe re-opening of the border.
“We also know vaccinations are going to be an important factor in rebuilding consumer confidence as well.”
Naidu said the chambers are working with government and public health officials in a variety of ways to help with the vaccine rollout.
In Ontario’s border towns and tourist regions like Stratford or Niagara’s wine region, American visitors make up a significant revenue stream.
Tourism Windsor Essex Pelee Island CEO Gordon Orr said local figures show U.S. visitors account for nearly 38 per cent of the area’s 4.8 million visitors. More than a third of the revenue for Caesars Windsor’s casino and local hospitality sector comes from Americans.
“Unfortunately it looks like vaccination delays are going to cost the tourism and hospitality industry the summer season for the second year,” Orr said.
“If we don’t get in sync with the U.S. we’re going to be left behind. The vaccine delays will also cost us domestic visitors.”
Naidu and Orr said history has shown that anything that is perceived as making the border tougher to cross results in Americans opting to remain home.
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“A big part of our economic recovery hinges on being able to smoothly get back and forth across the border,” Orr said.
“It’s a symbiotic relationship between the two countries and we need to be on a level playing field when it comes to vaccines.”
Copyright Postmedia Network Inc., 2021
