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Details have been released of the revenue-sharing agreement between Canada and the United States on the soon-to-be-opened Gordie Howe International Bridge between Detroit, Michigan, and Windsor, Ont.
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A document posted to the bridge’s website lists several factors under what is referred to as a “proposed agreement in principle.”
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They include a payment by Canada of 50 per cent of net bridge and crossing related revenues for the first 15 years of the bridge’s operation. “Such payments shall be made to a United Sates-Canada Economic Development Fund, established and solely controlled by the Government of the United States,” the document states.
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It also requires Canada to tell the U.S. of any changes to bridge tolls that are greater than 10 per cent, or that result in rates being less than “comparable regional crossings,” meaning the nearby Ambassador Bridge or the tunnel crossing. The U.S. may choose to veto such changes.
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Another clause cements the opening date of July 27, and allows for “a ceremonial opening event” no later than Aug. 3. Canada backed out of a planned July 24 ceremony after U.S. President Donald Trump proposed a series of new tariffs on this country.
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The full text of the agreement is below.
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Canada and the United States have reached agreement in principle on the following:
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1. Economic Participation: Canada will provide annual economic participation payments, outside the 2012 Canada–Michigan Crossing Agreement equal to fifty percent (50 per cent) of net bridge and crossing related revenues for the first fifteen (15) fiscal years of bridge operations. Net bridge and crossing related revenues is all revenues collected with respect to the bridge, less all incurred operating costs of the bridge. Such payments shall be made to a United Sates-Canada Economic Development Fund, established and solely controlled by the Government of the United States.
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2. Eligible Fund Commitments: Canada and the United States will reasonably agree on the objects of the United States-Canada Economic Development Fund, which will be for the benefit of the United States and trade between Canada and the United States.
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3. Toll Governance: Canada will direct the Windsor-Detroit Bridge Authority (WDBA) to inform the Government of the United States regarding proposed toll-rate adjustments during the first fifteen (15) fiscal years of bridge operations and to seek the United States’ consent where:
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a. a proposed toll-rate increase (i) exceeds ten percent (10 per cent) within any fiscal year and (ii) would result in toll rates that are above the average of comparable regional crossings; or
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b. a proposed toll-rate reduction would result in toll rates falling below the average of comparable regional crossings.
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The Government of the United States must provide its consent or notice of withholding of such consent within thirty (30) days of notification from WDBA, failing which consent shall be deemed to have been provided.
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4. Crossing Agreement: Nothing in this Agreement in Principle shall be interpreted as amending, modifying or superseding the 2012 Canada–Michigan Crossing Agreement or the ownership, governance and financial framework established thereunder.
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