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Why is ArriveCan still mandatory, and what is Ottawa’s plan for the contentious

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OTTAWA — The glitch-prone app touted as an efficient border tool early in the pandemic has become a punching bag for critics who question its utility ⁠ — but ArriveCan may be here to stay.

The government insists it’s a useful tool. Critics say it has outlived its use, if it ever had one.

Here’s a quick lowdown on what we currently know about it.

What is ArriveCan?

The app was introduced early in the pandemic and its use has been mandatory at air and land borders since February 2021 with exceptions in cases of accessibility issues or outages.

ArriveCan ostensibly screens incoming travellers for COVID-19 and for the last year tracked their vaccination status. Refusing to use the app to provide required information can result in a fine of up to $5,000 under the Quarantine Act.

Has the app done what it was supposed to do?

A December 2021 report from the federal auditor general said the ArriveCan app improved the quality of information the government collected on travellers. But poor data quality still meant that almost 138,000 COVID-19 test results couldn’t be matched to incoming travellers, and only 25 per cent of travellers told to quarantine in government-authorized hotels were verified to have stayed in them.

Last month, due to a glitch, ArriveCan instructed about 10,200 travellers to quarantine for 14 days when they didn’t have to. Bianca Wylie, a partner at Digital Public, questioned why the app would be automating those decisions in the first place, rather than sticking to the information-collection mandate it was launched with.

Is the app only about COVID-19?

Recent government updates to do with the app have focused on efficiencies rather than on public health measures. At air border crossings, it is now possible, though optional, to use the app to fill out a customs declaration form before arrival at Toronto’s Pearson airport, Vancouver or Montreal.

Last week the government said it planned to expand that optional feature to air arrivals in Calgary, Edmonton, Winnipeg, Ottawa, Quebec City, Halifax and the Billy Bishop Toronto City airport.

In a statement earlier this month that focused on Canada’s broader air travel fiasco, Transport Canada said those who use the forms cut their time at kiosks down by a third. That’s 40 seconds off the average two-minute visit, which the government estimates could “save hours in wait time” if everyone used it.

Are apps the way of the future for air travel?

Electronic data collection related to COVID-19 has been mandatory at many international borders, and online forms are increasingly being used for non-pandemic reasons. Australia handles its electronic travel authorizations exclusively via app, while an online authorization form will be required to visit the European Union starting next year.

Canadian officials haven’t gone so far as to say that they’re planning something similar. But Public Safety Minister Marco Mendicino told reporters in June that while ArriveCan was created for COVID-19, “it has technological capacity beyond that to really shrink the amount of time that is required when you’re getting screened at the border.”

Before the pandemic, Canada had already started digitizing its border services with other initiatives, including installing customs kiosks at major airports starting in 2017 and introducing an eDeclaration app in 2018, which still exists, to cut down processing times.

Wylie said people were not using that app at a high volume before the pandemic, because it was voluntary and there were easy alternatives. But she said Ottawa has been using COVID-19 as an opportunity to speed up the transition.

“The federal government has been using a public health crisis to basically train people in a border modernization exercise that they have wanted to do,” Wylie said, adding that modernization initiatives are fine as long as they are voluntary and alternatives are available.

How has the app affected travel across the land border?

About a quarter of people who cross into Canada from the U.S. by car don’t use ArriveCan in advance, according to Pierre St-Jacques, a spokesman for the Immigration and Customs Union.

At the Canada-U. S. land border, a one-time exemption is in place for travellers who “may have been unaware” of the rules, the Canadian Border Services Agency confirmed. Out of five million crossings between May 24 and Aug. 4, the exemption was used 308,800 times, CBSA said in a statement.

But that’s just a temporary fix, St-Jacques said, as officers who already feel spread thin because of staffing shortages find themselves acting as “IT consultants” and troubleshooting travellers’ technical issues rather than doing what they’re trained to do. “If the goal of the app is to make cross-border travel more efficient or more secure, well, it doesn’t work in its current iteration,” he said.

Border town mayors, border-city chambers of commerce and even duty-free stores have complained publicly that they think ArriveCan, along with other pandemic border restrictions, have been a deterrent to American tourists.

Why has ArriveCan become such a hot political topic?

Whether because Canadians are annoyed about the extra hassle, concerned about their privacy, sympathetic to border towns or simply fed up with the federal Liberals, Conservatives have an audience for their calls to eliminate ArriveCan.

Canadian acting darling Simu Liu joined the “scrap the app” bandwagon, challenging his followers to say a single nice thing about it in a tweet Tuesday, then saying immediately: “I failed the challenge.”

Interim Conservative leader Candice Bergen said in a tweet Tuesday that ArriveCan created “unnecessary hurdles” and “only serves to hurt Canada’s economy and tourism industry.”

Some voices have gone a step further in claiming that the app is part of a broader effort to collect personal information and control the public. Conservative leadership candidate Leslyn Lewis called the whole thing a “surveillance experiment.”

The privacy commissioner is also investigating a complaint about the app’s collection and use of personal data.

This report by The Canadian Press was first published Aug. 16, 2022.

— With files from Sarah Ritchie

Marie-Danielle Smith, The Canadian Press

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COVID-19

Effect of pandemic border restrictions could be long-lasting: Critics

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BANFF, Alta. — The last of Canada’s COVID-19 border restrictions are set to disappear at the end of this month, but some critics say they fear the measures have already caused a lasting decrease in cross-border travel.

At the Global Business Forum in Banff, Alta. on Friday, prominent voices who have been arguing for months in favour of the lifting of restrictions such as mandatory vaccinations, testing and quarantine requirements for international visitors said they’re now worried the economic impacts of such measures could be permanent.

In a panel discussion at what is an annual conference for business leaders in Canada’s most-visited national park, Meredith Lilly – an associate professor at Carleton University and a former international trade advisor to Prime Minister Stephen Harper – said cross-border day trips by Canadians to the U.S. never fully recovered after the terrorist attacks of Sept. 11, 2001.

She said her research has showed part of that is due to the heightened U.S. border controls put in place after that event.

“Fewer Canadians travelled to the United States to shop or fill up their tank of gas because of the unfriendly border,” Lilly said.

“Canada is now doing the same thing to Americans. So it’s going to take major effort to get Americans to come back.”

Earlier this week, federal government sources confirmed the cabinet order maintaining COVID-19 border measures will not be renewed when it expires on Sept. 30.

The change means international travellers will no longer have to prove they are fully vaccinated against COVID-19. Under the current rule, Canadians returning to the country who aren’t vaccinated must show a negative COVID-19 test result before arriving, and undergo further testing after arrival. They also must quarantine for 14 days.

The expiry also spells the end of insisting travellers use the ArriveCan app to input their vaccine status and test results, though the app will live on as an optional tool for customs and immigration.

But Lilly said the two-and-a-half years that pandemic-related border rules were in place was likely long enough to change the habits of some Americans, who will now no longer consider visiting Canada in the future.

Statistics Canada reported Friday that the number of international arrivals to this country increased in July even as they remain well below pre-pandemic levels.

The agency said the number of trips by U.S. residents in July was 2.2 million, 11 times the number of trips taken in July 2021, but still about 60 per cent of the trips reported in July 2019.

“So the picture still isn’t great,” Lilly said. “And three years is a long time for people to permanently change their behaviour.”

Canadian Chamber of Commerce president and CEO Perrin Beatty, who also spoke in Banff Friday, said this country’s tourism industry has now missed out on two summer seasons.

He said multiple medical experts have argued that testing asymptomatic travellers for COVID-19 at the border is far less effective than testing symptomatic Canadians within their communities.

“We’ve maintained these restrictions that simply make no sense. The cost to us, for small businesses in every part of this country, of the friction that we’ve put on at the border has been billions of dollars,” Beatty said.

“And we’re out of step with other countries around the world, we’re out of step with the science, and we’re out of step with the rest of Canadian society because of these self-inflicted wounds we’ve put on ourselves.”

A report released by the Canadian Travel and Tourism Roundtable on Friday aimed to assess the impact and effectiveness of border measures and other travel restrictions implemented by the federal government to slow the spread of COVID-19.

The report, which was authored by four Canadian doctors specializing in infectious diseases, emergency medicine and pandemic management, concluded border measures have been largely ineffective at preventing new COVID-19 variants from entering the country.

It also said there is no convincing evidence that pre-departure and on-arrival testing and surveillance have had a significant impact on local transmission in Canadian communities.

The expiry of the cabinet order on Sept. 30 doesn’t deal with whether passengers must wear masks on domestic and international trains and planes because that rule is contained in a separate order issued by the minister of transport.

The tourism industry has argued masking on planes is also “inconsistent” from a policy perspective, given that the high air exchange rates on passenger aircraft make them one of the safest ways to travel from a COVID-19 perspective.

“But the government of Canada is saying the single most dangerous thing you can be doing is travelling by air,” Beatty said.

This report by The Canadian Press was first published Sept. 23, 2022.

Amanda Stephenson, The Canadian Press

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Business

Dow sinks to 2022 low as recession fears roil world markets

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BEIJING — Stocks fell sharply worldwide Friday on worries an already slowing global economy could fall into recession as central banks raise the pressure with additional interest rate hikes.

The Dow Jones Industrial Average fell 1.6%, closing at its lowest level since late 2020. The S&P 500 fell 1.7%, close to its 2022 low set in mid-June, while the Nasdaq slid 1.8%.

The selling capped another rough week on Wall Street, leaving the major indexes with their fifth weekly loss in six weeks.

Energy prices closed sharply lower as traders worried about a possible recession. Treasury yields, which affect rates on mortgages and other kinds of loans, held at multiyear highs.

European stocks fell just as sharply or more after preliminary data there suggested business activity had its worst monthly contraction since the start of 2021. Adding to the pressure was a new plan announced in London to cut taxes, which sent U.K. yields soaring because it could ultimately force its central bank to raise rates even more sharply.

The Federal Reserve and other central banks around the world aggressively hiked interest rates this week in hopes of undercutting high inflation, with more big increases promised for the future. Such moves put the brakes on economies by design, in hopes that slower purchases by households and businesses will deflate inflationary pressures. But they also threaten a recession, if they rise too far or too quickly.

Besides Friday’s discouraging data on European business activity, a separate report suggested U.S. activity is also still shrinking, though not quite as badly as in earlier months.

“Financial markets are now fully absorbing the Fed’s harsh message that there will be no retreat from the inflation fight,” Douglas Porter, chief economist at BMO Capital Markets, wrote in a research report.

U.S. crude oil prices slid 5.7% to their lowest levels since early this year on worries that a weaker global economy will burn less fuel. Cryptocurrency prices also fell sharply because higher interest rates tend to hit hardest the investments that look the priciest or the most risky.

Even gold fell in the worldwide rout, as bonds paying higher yields make investments that pay no interest look less attractive. Meanwhile the U.S. dollar has been moving sharply higher against other currencies. That can hurt profits for U.S. companies with lots of overseas business, as well as put a financial squeeze on much of the developing world.

The S&P 500 fell 64.76 points to 3,693.23, its fourth straight drop. The Dow, which at one point was down more than 800 points, lost 486.27 points to close at 29,590.41. The Nasdaq fell 198.88 points to 10,867.93.

Smaller company stocks did even worse. The Russell 2000 fell 42.72 points, or 2.5%, to close at 1,679.59.

More than 85% of stocks in the S&P 500 closed in the red, with technology companies, retailers and banks among the biggest weights on the benchmark index.

The Federal Reserve on Wednesday lifted its benchmark rate, which affects many consumer and business loans, to a range of 3% to 3.25%. It was at virtually zero at the start of the year. The Fed also released a forecast suggesting its benchmark rate could be 4.4% by the year’s end, a full point higher than envisioned in June.

Treasury yields have climbed to multiyear highs as interest rates rise. The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose to 4.20% from 4.12% late Thursday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.69% from 3.71%.

Goldman Sachs strategists say a majority of their clients now see a “hard landing” that pulls the economy sharply lower as inevitable. The question for them is just on the timing, magnitude and length of a potential recession.

Higher interest rates hurt all kinds of investments, but stocks could stay steady as long as corporate profits grow strongly. The problem is that many analysts are beginning to cut their forecasts for upcoming earnings because of higher rates and worries about a possible recession.

“Increasingly, market psychology has transitioned from concerns over inflation to worries that, at a minimum, corporate profits will decline as economic growth slows demand,” said Quincy Krosby, chief global strategist for LPL Financial.

In the U.S., the jobs market has remained remarkably solid, and many analysts think the economy grew in the summer quarter after shrinking in the first six months of the year. But the encouraging signs also suggest the Fed may have to jack rates even higher to get the cooling needed to bring down inflation.

Some key areas of the economy are already weakening. Mortgage rates have reached 14-year highs, causing sales of existing homes to drop 20% in the past year. But other areas that do best when rates are low are also hurting.

In Europe, meanwhile, the already fragile economy is dealing with the effects of war on its eastern front following Russia’s invasion of Ukraine. The European Central Bank is hiking its key interest rate to combat inflation even as the region’s economy is already expected to plunge into a recession. And in Asia, China’s economy is contending with still-strict measures meant to limit COVID infections that also hurt businesses.

While Friday’s economic reports were discouraging, few on Wall Street saw them as enough to convince the Fed and other central banks to soften their stance on raising rates. So they just reinforced the fear that rates will keep rising in the face of already slowing economies.

Economics Writer Christopher Rugaber and Business Writers Joe McDonald and Matt Ott contributed to this report.

Damian J. Troise And Alex Veiga, The Associated Press

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