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Carney: Canada won't share bridge tolls until US debt is repaid.

Mark Carney, the Prime Minister, said that Canada would not share toll revenue with the United States until Canada had recovered its initial investment. The delay in opening the Gordie-Howe bridge, which was paid for by Canada has caused tensions between the United States, and Canada. This is at a time when the two countries are trying to update their trade agreement. Donald Trump, the U.S. president, said last week that he had negotiated "a better deal" with Canada to enable the U.S. bridge's July 27 opening. Carney was criticized by political opponents for caving in to the U.S., after American officials claimed that they had "gone from receiving no revenue" to a significant amount of revenue. Carney told a Thursday press conference that the agreement between Michigan and Canada on the Gordie-Howe bridge was unchanged since 2012, when Canada agreed pay for the bridge. According to the deal, Canada had the right to keep all toll revenues until it recovered its bridge investment costs.

Carney said that any sharing of?toll revenues will not happen until the entire debt has been repaid. Carney added that Canada and the U.S. would share net revenues during the first fifteen years, after operating costs such as maintenance and snow removal.

He said that he expected net revenues to be modest for the first couple of years after these costs. "When the splitting starts, all the portions that are going to the U.S. Government will be reinvested?into economic development." Details of the agreement reached between Canada and the U.S. are not public. Two sources said that a deal was reached last week, and the U.S. It would receive 50% of the toll revenue profit and be able veto any toll increase that is 10% higher than current tolls.

Fen Hampson is a professor at Carleton University who specializes in international affairs. He said that the deal represented a win for Canada.

If you do the math on when Canada will split the revenues, it won't leave much to?split." Carney said that it was in Carney's interest that Americans thought they forced a Canadian concession.

It's better for Trump to think that he has won, or else he could be vindictive.

Shuvaloy Majumdar, a Conservative Member of Parliament from the opposition, called it "a terrible?deal" in a letter he sent to government last week.

Majumdar wrote: "Canadians are entitled to the complete agreement, an accounting of all costs and a clear explanation about what was given."

(source: Reuters)