The Gordie Howe International Bridge connecting Windsor and Detroit is set to open on July 27.Dax Melmer/JOBFlocks
The Gordie Howe International Bridge connecting Windsor and Detroit is finally set to open on July 27, after its original June opening date was blocked by the Trump administration.
Ottawa and Washington have since struck a deal on revenue-sharing from the bridge, which was funded by Canada and is jointly owned by Canada and Michigan.
Here’s what you need to know about the political dispute over the bridge and where things stand now:
What was the dispute over the bridge? Why did the Trump administration stall the opening?
U.S. President Trump threw the bridge’s future into doubt earlier this year when he threatened to prevent its opening and said Canada, which was set to receive toll revenue, should give the U.S. government “at least one half” of the asset.
It was later reported that Trump’s threat followed a US$1-million donation from Matthew Moroun, owner of the Ambassador Bridge in Windsor. Moroun, whose family has opposed competition to the busy Ambassador, had also just met with U.S. Secretary of Commerce Howard Lutnick.
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A U.S. industry source told JOBFlocks last month that the U.S. government halted the bridge’s original opening date because Mr. Lutnick and Pete Hoekstra, Washington’s ambassador to Canada, wanted to negotiate a deal to help the Moroun family mitigate their losses. (In an interview with Global News, Mr. Hoekstra denied that donations from the billionaire family affected the U.S. administration’s stance).
Prime Minister Mark Carney said at the time that Canada agreed to delay the opening “at the request of the United States” to “resolve outstanding issues.” He did not specify what the issues were.
Who is the Moroun family and what is their role?
The billionaire Moroun family are owners of the Ambassador Bridge between Windsor and Detroit, who stand to face losses when the competing, publicly owned bridge opens.
The family, who also own a trucking company, have spent millions in political donations over the years to try and shut down competition to the Ambassador.
They successfully lobbied the government of Michigan to not contribute to funding the bridge, which resulted in Canada agreeing to pay the full cost of its construction.
Trucks cross the Ambassador Bridge to Detroit.JEFF KOWALSKY/AFP/Getty Images
What is in the deal between Canada and the U.S.? How is it different from the original?
In 2012, Ottawa agreed to pay the full $6.4-billion cost of the bridge. In exchange, Canada was to be repaid once the bridge was open, in the form of toll revenue.
Under the new deal struck between the two countries last week, Canada will share toll profits with the U.S. right away.
Canadian officials have described it as a side deal to the 2012 agreement, and have played down the amount of revenue the U.S. will receive. On Tuesday night, the Liberal government publicly released the full details of the agreement after coming under pressure from the Conservatives.
Under the side deal, Canada agreed to send the United States half of “net bridge and crossing related revenues” for the first 15 years that the bridge is in operation. It also granted Washington veto power over some toll rate changes for the first 15 years.
The revenues will be divided between the two countries after operating costs are deducted. The money will be paid by Canada to an economic development fund controlled by the U.S. government.
There is no clause in the agreement for Canada to use revenues to cover debt servicing before splitting the money with the U.S.
The details contradict earlier statements by Mr. Carney, who described the money to be split as “net revenue after operational expenses,” and told CTV News that those expenses include debt repayment.
Mr. Carney previously said he expects there will not be much money from toll proceeds to split with the U.S. in the first few years of the bridge’s operation, after operational expenses.
Those expenses include staffing toll booths, maintenance, snow removal and other costs, he said.
A senior Canadian government official speaking on background told The Globe that the money paid to the U.S. would not come directly from the toll revenues, but from Canadian government coffers in an amount equal to half the net revenues from tolls.
Another government official acknowledged the side deal could mean it takes longer for Canada to recover the $6.4-billion cost of building the bridge. The 2012 agreement suggested that it could take Ottawa 50 years to recoup the money.
The Globe is not identifying the two officials because they were not authorized to speak publicly on the matter.
What is the bridge meant to achieve?
It’s meant to reduce congestion on the busy Ambassador Bridge and provide another crossing option along the busy Windsor-Detroit corridor, which is crucial to the two cities’ interconnected auto industries.
It provides direct access between highways, as opposed to the route of the Ambassador, which requires vehicles to travel through the streets of Windsor, and will offer more extensive cargo screening facilities.
Its grand opening was also intended to be a symbol of co-operation between the U.S. and Canada, according to Mr. Carney.
When is the opening ceremony for the bridge?
A celebration planned for July 27 was cancelled by Ottawa on Tuesday after Mr. Trump threatened more tariffs on select Canadian imports.
Instead, a Canada-only celebration is being planned for Friday to mark the opening of the bridge.
With reports from Steven Chase, Adrian Morrow, Kate Helmore, Marieke Walsh and Laura Stone