Prime Minister says Canada will not share bridge revenues with US until it recoups its investment

OTTAWA — Canada will not share toll revenues from the new $4.7 billion Gordie Howe International Bridge with the United States until it has fully recovered its initial investment, Prime Minister Mark Carney said on Thursday.

The bridge, which connects Windsor, Ontario, and Detroit, Michigan, is scheduled to open on July 27. Its delayed opening has heightened tensions between the two countries and added economic pressure as Canada and the United States continue negotiations on an updated trade agreement.

Last week, U.S. President Donald Trump said he had secured "a much better deal" for the United States regarding the bridge's opening. His political opponents criticized Carney, claiming Canada had made concessions after U.S. officials said the agreement would allow the United States to receive a share of the toll revenue.

Carney rejected those claims, saying the agreement remains consistent with a 2012 deal under which Canada financed the bridge's construction. Under that agreement, Canada is entitled to collect all toll profits until it recovers the full cost of its investment.

"Any sharing of the toll revenue won't happen until all of the debt is repaid," Carney said during a press briefing.

He added that after the investment is recovered, Canada will split net toll revenues with the United States during the first 15 years, after deducting operating expenses such as maintenance and snow removal.

"We expect that after those costs, for the first few years, net revenue will be modest," Carney said. "When the splitting begins, all of the portions that go to the U.S. government will be reinvested in economic development."

The full details of the agreement have not been made public. However, two sources told Reuters that the United States would receive 50% of toll revenue profits once revenue sharing begins and would have the authority to block toll increases exceeding 10% above current rates.

The bridge agreement comes as relations between the two countries face additional strain over Canada's handling of ongoing wildfires. Smoke from fires in northern Ontario has spread across large areas of the United States, affecting communities from the Midwest to the Northeast.

Michigan Republican Representatives Jack Bergman, John James, Lisa McClain, and John Moolenaar criticized Canada's wildfire management, accusing the government of underinvesting in forest management and fire prevention measures.

In response, Carney said climate change is contributing to increasingly severe wildfire conditions and called on the United States to play a greater role in addressing the global issue.

"We need a contribution from the Americans in the fight against climate change," Carney said. "Climate change is the responsibility of everyone, including the United States."

Some analysts view the bridge agreement as favorable to Canada. Fen Hampson, a professor of international affairs at Carleton University, said Canada is unlikely to share significant revenue because most toll income will first be used to recover the country's investment.

"It’s better to let Trump think he's gotten a win," Hampson said, suggesting the arrangement benefits Canada while helping avoid further political conflict.

Meanwhile, Conservative Member of Parliament Shuvaloy Majumdar criticized the agreement, calling it a "terrible deal" and urging the government to release the full terms so Canadians can understand its financial impact. -Reporting by Maria Cheng, Additional reporting by David Ljunggren in Ottawa and David Shepardson in Washington; Editing by Nia Williams/Reuters