Canada paying to construct Gordie Howe bridge is ‘big myth’, according to Ambassador Pete Hoekstra

Pete Hoekstra, U.S. Ambassador to Canada, appeared on The Food Processor podcast for a wide-ranging interview on trade issues, including agriculture. Photo by Tony Caldwell /Postmedia

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The opening of the Gordie Howe bridge is stalled because the U.S. wants to review the impact of construction costs and delays on revenue-sharing, according to U.S. Ambassador to Canada Pete Hoekstra.

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Hoekstra said that Canada footing the bill for the bridge “is the big myth that is out there … I think it’s important that people realize this, okay? Because I hear it all the time. What does America have to do with this? We paid for the bridge. It’s our bridge. Just open it.”

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He made the comments during a wide-ranging interview about Canada-U.S. trade on the July 2 edition of The Food Professor podcast.

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Hoekstra recognized Canada loaned the bridge authority C$7 billion for the construction: “So, Canada, yes, Canada is serving as the bank for the bridge.” However, he noted that as the bridge generates revenue, the cost will be paid back. “The bridge will actually be paid for by the folks who are using the bridge. It will not be paid for by the Canadian government. So, Canada put the money up front, but at the end of the day, the expectation is that there will be a ‘use tax’ that will pay for the bridge.”

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As previously reported by National Post, the revenue will eventually be shared by Canada and the state of Michigan, but that’s after Canada is repaid for the construction from the tolls. The government of Canada expects to recoup its investment over the next 36 years, according to the U.S. Department of Transportation.

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But the opening has been held up as the revenue-sharing arrangement is reviewed. “We both look forward to getting it open,” said Hoekstra, but, he added, “the Canadian government and the U.S. government recognized that there are some issues that are outstanding.”

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He noted that such large-scale projects are often not completed on time or on budget. “So, we have a bridge that has come in significantly over budget and has come in significantly later than originally forecast. That has changed the business model.”

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And now, he says, the two federal governments have agreed to delay while they “get some of this ironed out … in terms of how the business case has changed, because it’s very, very different than when the original agreement was signed, what, 12, 15 years ago.”

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He also alluded to concerns linked to owners of the Ambassador Bridge (also reported on previously by National Post), which links Detroit, Michigan, with Windsor, Ont., and is the diversion for existing traffic to Gordie Howe bridge. The Moroun family of Detroit owns the Ambassador Bridge and made a U.S.$1 million campaign donation to a MAGA political action committee back in January. Shortly thereafter, President Donald Trump stated on social media that he would block the opening of the Gordie Howe bridge.

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Hoekstra said that “traffic is not increasing in that Detroit River corridor … The Gordie Howe Bridge is not generating new traffic. So, you’re moving revenues … to the Gordie Howe Bridge … So, it’s a diversion of funds that will end up paying for this bridge.”