The Gordie Howe International Bridge now has an official opening date of July 27. Of course, there is a catch.
What happened: After fronting the entire $6.4 billion cost of the new link between Windsor and Detroit, Canada has agreed to new, less favourable terms demanded by Washington to get the bridge opened.
Under the new terms, Canada will give up 50% of toll revenue for 15 years, which will now flow into a U.S.-controlled “economic development fund.” Canada was originally entitled to 100% of toll revenue until it had recouped the cost of the bridge, something that was expected to take at least 50 years.
Canada will also have to get permission from the U.S. to raise tolls by more than 10%, or to lower them below levels charged by other local crossings — a clause that will please the owners of the nearby Ambassador Bridge, who also happen to be major Republican donors.
Why it matters: The bridge will be a real boon for commercial traffic and the industries that depend on goods moving smoothly across the border, like the auto sector. It has six lanes versus the Ambassador’s four, more inspection lanes, better tech, and bypasses downtown Windsor. One estimate pegged the time savings for trucks at 850,000 hours per year.
Yes, but: Remember that scene in Star Wars when Lando Calrissian protests that Darth Vader isn’t honouring the terms of their agreement, and Vader informs him: “I am altering the deal. Pray I don’t alter it any further.” Well, that’s sort of what happened here, raising some obvious questions about how much other deals with the U.S. — like, say, a major free trade agreement currently being negotiated — are worth.—TS
