MNI POLICY: Canada Bars Overseas Visits, Keeps US Border Open

--PM Trudeau Says Too Integrated With US Economy To Close Off

By Greg Quinn

     OTTAWA (MNI) - Canadian Prime Minister Justin Trudeau on Monday barred most

foreign arrivals except the biggest source of visits from the U.S., balancing

health risks from COVID-19 and deep integration between two of the world's

largest trade partners.

     The rules don't apply to American citizens and trade shipments, Trudeau

said Monday from his private residence where he's in self-isolation after his

wife tested positive for the coronavirus. The prime minister also repeated a

promise he's been making since the middle of last week to present major support

for families losing income from shutdowns in the next few days.

     "These measures will help save lives," Trudeau said, adding he will

consider any further actions needed to protect public health. "We can still slow

the spread of this virus, but as Dr. Tam said, that window is closing," he said,

referring to the country's top health officer, Dr. Theresa Tam.

     Canada and the U.S. have long touted having the world's longest undefended

border and there is no major precedent for shutting it since the War of 1812

settled most tensions between the colonies that grew into their modern-day

nations. At the same time, Trudeau is leaving open the source of 25 million

visits to Canada last year, well ahead of the 5.7 million visits from Europe and

Asia. 

     Government officials briefing Trudeau last year after his election win said

Canada and the U.S. are the world's biggest trade partners, exchanging about

CAD1 trillion a year in products. Canada's two-way trade was equal to 66% of its

GDP in 2018, and three-quarters of its exports went to the U.S. 

     "The level of integration between our two countries is quite particular"

Trudeau said when asked about the U.S. exemption.

     Canadians should avoid travel and those abroad should return home while

it's still possible and self-isolate for 14 days. Even Canadians showing

symptoms will be barred from taking flights home, and overseas flights will only

be able to land at four designated airports.  

     "This is an adjustment for all of us," Trudeau said. "Canadians as much as

possible should stay home."

     The signs of strain on the economy are building as businesses shut in

response to a loss of customers. 

     Earlier Monday the BOC offered further support for strained financial

markets, saying it could purchase mortgage bonds if needed. On Friday the BOC

made a surprise 50bp rate cut to 0.75%, and it could do more soon after the Fed

cut rates to just above zero on Sunday. 

     Statistics Canada said Monday it's suspending media lockups for its

economic reports until further notice, citing health concerns. 

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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