The Gordie Howe International Bridge connecting Windsor and Detroit is set to open on July 27.Dax Melmer/The Globe and Mail
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 The Globe and Mail 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.
The fine print of the deal has not been shared publicly, and a spokesperson for the Prime Minister said the details are still being finalized.
Canadian officials have played down the amount of revenue the U.S. will receive.
Ottawa says that for 15 years, Canada will send 50 per cent of the profits from bridge tolls to an economic development fund for the apparent benefit of the United States.
Mr. Carney told CTV News that profits shared with the United States would be net profits after various costs, including debt repayment.
“So, we get the revenues. Then the servicing of the costs of the bridge and paying the debt of the bridge, and then what’s left over – there’s a split of that for 15 years,” he said.
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.
With reports from Steven Chase, Adrian Morrow and Kate Helmore