Economic Benefits and Constraints to Opening Canada’s Borders

Introduction

Policymakers regard Canada’s immigration program as critical to the country’s progress and future growth. Growing the country’s population, however, demands a balance and keen monitoring. The current immigration plan for 2019-2021 set by the Canadian government should be carefully analyzed. Presently, there are government restrictions on the free flow of immigrants entering the country. If Canada were to lift the ban and open the borders to allow the free flow of immigration from around the world, it would help improve population growth and the Canadian economy.

Importance of Immigration to the Canadian Economy

The government’s 2019-2021 plan on immigration in Canada aims to achieve a strong middle class by boosting the economy and growing vibrant, inclusive communities. A critical target of Canada’s immigration plan is to spur innovation in the country (Government of Canada, 2018). The immigration program helps support and secure a skilled workforce from the international population. The immigration of experts in diverse areas of the economy is meant to support the Canadian domestic labor market and counter the adverse effects of the aging population. Adopting employment-based immigration is vital to fill the gap left by Canada’s aging population in its labor market.

Interestingly, scientists perceive the economic adaptation of Canadian immigrants as the cornerstone of the successful immigration policy. Moreover, the scholars say that immigrant entrepreneurship is seen as an effective strategy for economic adaptation for new immigrant groups that arrive in the major host countries (Brzozowski, 2017). The Canadian government does its best to create policies that ensure immigrants’ work and life adaptation to the new places. Scientists found that there are “three main potential outcomes of immigrant economic adaptation through entrepreneurship: segmented assimilation, transnationalism, and provisional business project strategy” (Brzozowski, 2017, p. 159). It is therefore considered that further governmental efforts should be focused on discussing determinative factors that contribute to the adaptation of immigrant entrepreneurs and that new state policy should be based on such analysis.

If Canada were to stop admitting immigrants, its population would potentially reduce, which does not favor its growing economy. Lower population levels mean fewer skilled employees, lower production levels, and lower economic output. In this case, it is unlikely that Canada maintains its economic progress. Most Canadian immigrants are high-skilled experts who are in great demand in the labor market. The current policies and regulations guarantee that immigrants have high education and relevant business skills to bring investments to the country (Government of Canada, 2019). The government is keen to invest in attracting immigrants skilled in areas like medicine and engineering to achieve the country’s labor gap (Government of Canada, 2018). The express entry program, for instance, targets software engineers, data analysts, computer programmers, and other professionals skilled in information technology.

Scientists admit that Canada is one of the 15 most popular countries among immigrants, as it provides good job opportunities. Specifically, according to the 2018 Global Talent Competitiveness Index, the US, Canada, and Australia were attracting two-thirds of all skilled immigrants worldwide (Chand & Tung, 2019). Although Canada does not have an open border, it satisfies its demand for skilled talent. However, the Canadian government should not only think about the benefits for its existing businesses but also help people who face hardships during the first years of adaptation. Otherwise, there is a chance that developed countries like the US and Australia will outperform Canada in the race for talents. Scholars emphasize there is an actual war for talent between these countries aimed to fill the labor gap (Chand & Tung, 2019). Therefore, state immigration policies should be reconsidered to be more humane and better focused on immigrants’ needs during the adaptation period.

Immigration flows ensure that Canada’s growing demand for skilled labor to support its expanding economy does not exceed the supply. Therefore, immigration helps the country offset the possibility of an extreme labor shortage in the domestic market. Among the most affected areas of the economy is skilled trade, which has experienced low entry by native Canadians (Government of Canada, 2018). The country can access a large external international market and, therefore, must expand its outputs. To attain its economic potential, Canada must focus on maximizing the output from its population while increasing the supply of skilled labor. Notably, immigrants into the country who possess novel skills can outdo the bottlenecks in production and boost economic progress.

Immigrants contribute to taxes that fund Canada’s public services and its health care programs. Another critical aspect is the contribution of immigrants to the country’s economy through spending on services, purchase of goods, and tuition (Government of Canada, 2018). Immigrants form a considerable share of Canada’s consumer market and contribute to increased demand for local goods and services. Immigrant-owned businesses are a critical part of Canada’s job creation. Therefore, the governmental immigration policy serves to increase the country’s purchasing power.

Reasons behind Limited Entries of Immigrants into Canada

The 2019-2021 Canadian immigration plan has adjustment levels for every period. In 2019, the federal government allowed the resettlement of approximately 1,000 vulnerable refugees, mainly women, and girls. Canada plans to admit a total of 330,800 immigrants in 2019 (Government of Canada, 2018). In 2020, the protected persons and dependents abroad category was to be expanded from 340,000 to 341,000 (Government of Canada, 2018). In 2021, the plan outlines the government’s intention to increase the admission by 9,000, including 6,500 economic class immigrants and 2,500 humanitarian streams (Government of Canada, 2018). Every province has a planned level of admissions of immigrants for every category. The number of immigrants allowed to enter the country in 2021 is 350,000 (Government of Canada, 2018). The total estimated numbers are high, which means that the Canadian economy counts on the immigrants’ labor and consumer inputs.

Admission of immigrants into the country has always been subject to strict immigration policies and limited entry. The policies and restrictions set by Canadian authorities are largely merited. Immigrants undergo a robust interviewing process and screening before they can be allowed into the country. Canadian immigration authorities capture biometric data and information to ensure the complete and accurate identification of immigrants (Government of Canada, 2019). The authorities also conduct security checks based on information shared among different intelligence bodies. Law enforcement authorities conduct background checks of immigrants’ information using their database. Information shared from a global database is important to check the criminal history of applicants.

The rigorous process of background checks targets health issues as well. Health screening and medical examinations protect Canadians from the risk of contagious diseases when immigrants are potential carriers. Notably, immigration remains a critical determinant of public health in Canada (Lu & Ng, 2019). It is imperative to determine the identities and health status of every immigrant coming into the country. Immigrants’ health status varies because of their origins, making a case for measures to ensure early detection of diseases at the entry points and ensure treatment. Canadian health agencies are justified to use relevant health databases to examine the health conditions of immigrants admitted into the country.

Checks conducted are meant to prevent the entry of immigrants in possession of prohibited items. Canadian authorities check for any immigrant who may intend to enter the country with ammunition or BB guns (Government of Canada, 2019). They also check for any presence of firearms, flare guns, or part of them. As a security measure, they check for any sharp or striking devices that may be a security threat. Canadian detectives at entry points and other controlled areas along the border are keen to ensure immigrants do not possess explosives and flammable substances during their entry into the country. Further, security authorities check for any disabling chemicals or any form of dangerous items.

Interestingly, scientists conclude that the real terrorist threat is considerably lower than it is widely perceived. Moreover, the scholars say that it is not the main reason for the numerous checks required by the immigration policy. Specifically, Choi (2021) points out that “terrorist threats are actually unrelated to restrictive immigration policies” (p. 271). Moreover, the scholar emphasizes the importance of the economic side of the issue, saying that receiving countries like Canada are mainly attractive to low-skilled workers due to high wages. This statement implies that Canada is likely to restrict the low-skilled labor to protect its domestic labor market. In case the country decides to introduce the open border policy, it will see the increased consumption levels and, partially, increased economic flows. However, the immigration policy should be well-thought-out because there is a risk of excessive low-skilled labor supply that may increase unemployment rates among the local population.

Although the immigrants are not perceived as a terrorist threat, the security checks among immigrants help to avert the potential dangers of terrorist attacks. Critics of Canada’s open immigration policy have long questioned the extent to which it assures Canadians of their security, especially post 9/11 attack in America. There is a critical need to achieve a balance between ensuring the progressive entry of immigrants to Canada and safeguarding the country from potential terror and other crime-related attacks.

Canada’s Immigration and Refugee Protection Act outlines various provisions to ensure criminals and other individuals who are a threat to security are not admitted as immigrants into the country. Canada’s security and immigration laws are constituted to avert every aspect of security threat to the country (Government of Canada, 2019). Provisions and programs such as the security certificates issued to immigrants allow the government authorities to arrest them and deport them based on any suspected security threat to the country.

The Economic Pros and Cons of an Open Border

While having open borders may be a consideration among policymakers, it is imperative to evaluate its economic demerits and merits. Open borders imply there is an unrestricted entry and exit of immigrants into Canada. Open borders result from the lack of or noncompliance with legal controls. In such cases, there are no background checks or customs controls that restrict the entry and exit of immigrants. There are various economic merits and demerits of embracing an open border policy on immigration.

One significant merit of open borders is eliminating administrative and other costs incurred by the Canadian government in controlling its borders. Immigration control and enforcement of immigration laws is a critical spending area for the Canadian government. In 2019, Canada’s federal budget for border control was $1.18 billion (Wright, 2019). The budget was dedicated to controlling the entry of asylums into the country through unofficial entry points. The high cost of border-enforcement operations, including the detection, interceptions, and deporting of irregular migrants in the country, would reduce if Canada implements an open border policy. An open border in Canada would result in a low cost of operating the immigration system used to fund the border services agency.

A critical economic demerit is that open borders increase the population of refugees and immigrants eligible for economic and social assistance by the government. Adopting an open border policy in Canada would strain the country’s health system. It would result in an expansion of health-related tax relief granted to irregular immigrants. Expenditures on government assistance programs and other schemes would be costly to support. Other economic demerits of overpopulation would result in lower wages and competition for available jobs, which would render natives to be unemployed. Other effects include a reduction in the standards of living.

Based on an analysis of the potential pros and cons of open borders, it would result in economic harm rather than be beneficial. Although it may result in the low administrative cost of border control and enforcement operations, open borders will attract many low-skilled immigrants who may not be productive and innovative. The employment gap in low-skilled labor sectors would be closed when Canada leaves its borders open, which will not increase the global competitiveness demanded of Canada’s expanding economy. It will not result in investment in science, engineering, and technology, critical to Canada’s economic progress.

Open Border as a Solution for Economic Vitality

There are diverse concerns and debates regarding limitless and open Canadian borders as a critical risk to the country’s demography and can potentially hamper its economic viability. Critics regard the move to set a borderless and limitless Canada immigration as contributing to low wages. Further, critics argue that it may put strains on the country’s social support systems. While Canada has gained a global reputation for administering a comprehensive policy on immigration, having limitless and open borders would not be the solution to maintaining sustainable demography and attaining economic vitality. Many hold the view that Canada’s success depends on its sustainable demography and attaining economic vitality. It is closely secured to how Canada would implement its immigration plan 2019-2021 and other similar programs in the future.

As the demographic characteristics of Canada transform, there must be relevant policy responses. Several policy responses have been implemented to ensure immigrants moving to Canada have valuable skills to benefit the labor force. Currently, the federal government has granted liberty to provinces to set their targets for immigrants. They select economic immigrants based on the provinces’ independent criteria. Besides, provinces have the liberty to determine different integration programs for immigrants coming to Canada. Such programs as the provincial nominee program hold a critical success factor for Canada’s immigration and reforms in the future. They will ensure Canada maintains sustainable demography and achieve economic vitality. Therefore, open borders are not the only way to help Canada have a vibrant, innovative, and productive labor force. This issue is somewhat controversial and should be further discussed by scientists to find a solution that will be perfect both for immigrants and the local Canadian labor forces.

References

Brzozowski, J. (2017). Immigrant entrepreneurship and economic adaptation: A critical analysis. Entrepreneurial Business and Economics Review, 5(2), 159-176.

Chand, M., & Tung, R. L. (2019). Skilled immigration to fill talent gaps: A comparison of the immigration policies of the United States, Canada, and Australia. Journal of International Business Policy, 2(4), 333-355.

Choi, S. W. (2021). Immigration policy and terrorism: an empirical analysis. Defence and Peace Economics, 32(3), 271-295.

Government of Canada (2018). Notice – Supplementary Information 2019-2021 Immigration Levels Plan. Web.

Government of Canada (2019). Immigration and Refugee Protection Act (SC 2001, c. 27). Justice Laws Website. Web.

Lu, C., & Ng, E. (2019). Healthy immigrant effect by immigrant category in Canada. Health reports, 60(4), 3-12.

Wright, T. (2019). Federal budget 2019: $1B border strategy promises to get tough on irregular asylum seekers. The Canadian Press. Web.

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