Trump’s Threat to Delay Bridge Raises Economic Stakes
Tensions are simmering between the U.S. and Canada once again after U.S. President Donald Trump threatened to block the opening of a bridge that will link the two countries. Here is a look at the latest on this escalating situation.
Trump Speaks with Canadian Leader After Threatening to Delay Bridge Opening
Canadian Prime Minister Mark Carney spoke with President Donald Trump early Tuesday about an issue concerning the Gordie Howe International Bridge. This bridge that will connect Windsor, Ontario, to Detroit, Michigan, has been under construction for eight years. After several delays, the bridge is slated to open this spring.
Trump has threatened to block Canadian access to the bridge, claiming that the federal government owns the bridge. The truth is that the bridge is publicly owned in a joint effort between Canada and the state of Michigan.
The Canadian leader detailed that his government paid approximately $44 billion to construct the bridge, using workers from both nations. Steel from both the U.S. and Canada was used to build the bridge, according to Carney. Although Canada paid for all of the initial costs to build the bridge, the Canada-Michigan Crossing Agreement of 2012 guarantees that the structure enjoys binational ownership.
The bridge's operation falls under the direction of the Windsor-Detroit Bridge Authority, a Canadian Crown corporation. The full oversight over the bridge falls under the International Authority, leaning on an equal number of representatives from Michigan and Canada for decisions.
Carney was complimentary of the cooperation between the two countries before the latest snafu, saying that he was looking forward to the bridge's opening. The bridge is being promoted as a connection between Canada and the U.S., serving as an important commerce and tourism tool.
Ontario Premier Doug Ford does not appear to be concerned about Trump's threats about further delaying the opening of the bridge. Ford told the media on Tuesday that he is "very confident the bridge is going to open." Ford said that he is confident of the opening because "it is in the best interest of the American economy," noting that several Michigan lawmakers have refuted Trump's remarks about delaying the opening.
Ford went on to point out that Trump fast-tracked the construction of the bridge due to its importance for commerce. Spanning just over 1.5 miles, the bridge will pave the way for traffic and goods to flow from Canada's Highway 401 to Interstate 75 in the U.S., bypassing busy border crossings.
The bridge is already paying dividends for both countries. According to data from the local government in Ontario, the construction of the bridge has created 12,670 jobs in Michigan. This does not include all of the jobs that were created in building the bridge's components.
Conflict of Interest Called Into Question
The future of the Gordie Howe International Bridge was not the only topic of discussion during Tuesday's call between Trump and Carney. The prime minister also confirmed that he discussed the Canada-U.S.-Mexico Agreement (CUSMA) with his U.S. counterpart.
Jamieson Greer, Trump's trade representative and expert on CUSMA, recently told Fox Business that the agreement will include "a negotiation specific to the bridge." During the interview, Greer signaled that the U.S. may want the toll revenue generated by bridge crossings. As per the original agreement, Canada is slated to collect more of the toll money to make up for paying for the cost of the structure. Once Canada has recovered its initial investment, Michigan will then be able to collect 50% of the net toll revenues.
Greer also said that since the U.S. economy is bigger than Canada's, it should be compensated for allowing its neighbor to the north to sell goods over the border. Ford is opposed to this idea, urging his province and country to "not buckle" to Trump's demands.
In the interview with Fox Business, Greer also addressed the topic of the Ambassador Bridge. This crossing is owned by the Moroun family, a major donor to the GOP. This American family spent years fighting against the installation of the Gordie Howe Bridge, as it will be a competitor.
The New York Times reported later on Tuesday that Matthew Moroun met with U.S. Secretary of Commerce Howard Lutnick early in the week in Washington, D.C. It was then reported that Lutnick spoke with Trump after the meeting about the issue. It was just a few hours later that Trump threatened to delay the opening of the Gordie Howe bridge. These allegations are raising concerns about conflicts of interest.
Former Michigan governor Rick Snyder penned an op-ed after Trump's comments about the planned delay. Snyder is a Republican who was also instrumental in making the deal with Canada to build the bridge. In the op-ed, Snyder said that the Moroun family will emerge as the "big winner" if the opening of the bridge is delayed or stopped.
As this back and forth is happening, the opening date of the bridge is drawing closer, putting into question whether it will be delayed even further.
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