Canada trade gets lifeline as Gordie Howe bridge set to open

The six-lane bridge linking Detroit and Windsor, Ontario, is expected to strengthen North American supply chains, improve truck mobility and provide additional capacity at the busiest commercial land border crossing on the continent. 

The crossing also will offer a second major truck route between Interstate 75 in Michigan and Ontario’s Highway 401, bypassing many of the congestion points surrounding the century-old Ambassador Bridge.

The opening announcement comes roughly five months after President Donald Trump threatened to block the bridge’s debut unless Canada agreed to renegotiate aspects of the project’s financial arrangements. 

At the time, Trump argued the original agreement did not provide sufficient benefits to the U.S, creating uncertainty for carriers, manufacturers and shippers that rely on the Detroit-Windsor corridor.

Related: Trump’s bridge threat injects uncertainty into busiest US–Canada freight corridor

That impasse appears resolved.

Canada announced Friday that the two countries agreed to “a series of cooperative measures focused on toll governance and transparency,” including creation of a 15-year regional economic development fund financed through a portion of bridge operating profits, according to a news release. 

The Windsor-Detroit Bridge Authority also agreed to work with the U.S. government on certain non-market toll adjustments.

According to Reuters, the agreement gives the United States 50% of toll revenue profits and authority to veto toll increases exceeding 10% above current rates. Trump said the revised agreement was “great, and fair,” allowing the bridge to move forward.

Construction began in 2018 and was financed by Canada after the U.S. declined to contribute to the estimated $4.7 billion project. The bridge had originally been expected to open in June before political negotiations delayed the launch.

FreightWaves previously reported the corridor handles an estimated 2.7 million to 2.9 million commercial truck crossings annually and is expected to become more efficient once the new bridge opens by providing a direct interstate-to-highway connection and additional capacity for hazardous-material shipments.

Recent trade data underscores the corridor’s importance. Canada remained the United States’ second-largest trading partner in May, with total bilateral trade valued at $66.13 billion. The Detroit Ambassador Bridge alone handled approximately $12.36 billion in trade during the month, making it the country’s busiest U.S.-Canada trade gateway by value.