Ottawa Update

1. Ottawa Update Annette Gibbons, Director General, Surface Transportation Policy, Transport Canada November 2, 2011

2. Table of Contents Elections Canada and the World Gateways Update Key Current Files

3. Elections Majority Conservative Government elected, May 2, 2011 Several provincial / territorial elections held across the country • Ontario, Manitoba, Prince Edward Island, Newfoundland, Yukon, Northwest Territories Conservatives (166) New Democrats (103) Liberals (34) Bloc Québécois (4) Green Party (1) Seating plan at the beginning of the Parliament, reflecting the 2011 election results

4. New Minister of Transport, Infrastructure, and communities The Honourable Denis Lebel First elected to House of Commons in 2007 Former mayor, Roberval, Quebec

5. Canada and the world Convergence of global and domestic pressures are shifting the conditions for future success: • Restrained demand growth in U.S. • Strong Canadian dollar and rising energy prices • Increased international competition • Global financial uncertainty • Budget 2012 – Expected federal fiscal restraint

6. Canada and the world Strategic Opportunities for Transport Canada: Ensuring policy frameworks respond effectively to global market trends and support trade growth Facilitating trade through transportation infrastructure investments Advancing the Gateways policy as an economic competitiveness strategy Actively engaging Michigan and the U.S. on the new Windsor–Detroit bridge

7. Prince Rupert Asia-Pacific Gateway and Corridor Initiative Atlantic Gateway Ontario-Quebec Continental Gateway and Trade Corridor Vancouver Halifax Montreal Windsor Airport * Major Container Ports GATEWAYS UPDATE

8. Asia-Pacific Gateway and Corridor • Since 2006 launch, significant progress has been made : • Federal investment of $1.4B leveraged $3.5B in public-private investments for • 47 priority infrastructure projects have benefited from funding • Going forward, the Asia-Pacific Gateway focus is to… • Continue to implement the APGCI mandate • Address more systematic improvements • Continue to support areas providing high-efficiency gains with modest investments,

9. Atlantic Gateway and Trade Corridor • $250 million has been committed to infrastructure investments from the federal Gateways and Border Crossings Fund (GBCF). With provincial and private sector contributions, this leverages a total of $600 million for Atlantic Canada infrastructure investments • $5 million was committed from the GBCF to support Atlantic Gateway strategic international marketing activities Released in March 2011, the Strategy is an action plan balancing immediate measures and longer-term directions designed to focus ongoing efforts by all public and private sector partners toward the optimization of Atlantic Canada’s transportation systems in support of international trade.

10. Continental Gateway Federal accomplishments since 2007: • Nearly $4 billion has been committed to infrastructure investments in Ontario and Quebec by the federal government to support the Continental Gateway • Key infrastructure investments & commitments in Ontario include:

11. Continental Gateway Federal accomplishments since 2007: • Policy, regulatory and other measures: • Modified Tariff rules regarding customs treatment of imported cargo containers • Elimination of 25% duty on certain foreign-built vessels • Amendments to the Canada Marine Act • Blue Sky Policy/bilateral air liberalization (ongoing) • Business environment: creating the right conditions for trade and growth: • Elimination of many manufacturing tariffs -- Tariff-Free Zone for manufacturers • Free trade agreements under negotiation, e.g., European Union, India • “Partners are currently working together towards releasing the strategy.” -Minister Denis Lebel

12. Other Key priorities Detroit River International Crossing (DRIC) / NITC • Canada fully committed to a new bridge between Windsor and Detroit • Continue to explore options for delivering new crossing with Michigan and U.S. Rail Freight Service Review • 6 month facilitation process on service agreements and a commercial dispute resolution process between railways and stakeholders Canada-U.S. Vision for Perimeter Security and Economic Competitiveness • Tremendous work to identify specific initiatives for the Action Plan • Transport Canada and CBSA have been an integral part of the process • Waiting for release by Leaders

13. Other Key priorities Regulatory Cooperation Council • Also announced February 4 by the Prime Minister and President • Objective: “…better align our regulatory approaches… make it easier for Canadian and American firms to do business on both sides of the border…” “Smart Corridors” / Intelligent Transportation Systems (ITS) • Working with Quebec and Ontario to develop a suite of technological transportation solutions along strategic corridors Cost of Compliance for Canada-U.S. Trans-Border Trucking • Costs of complying with border rules and analysis of transit times at key crossings • Expected completion: early 2012

14. Other Key priorities New Long-Term Infrastructure Plan • Budget 2011 commitment: • Key challenges to address: • Infrastructure deficit • Fostering economic growth and competitiveness • Social well-being • Greater private sector involvement and P3s / innovative financing • Consultations will begin soon with provinces and other stakeholders • “The Government will work with provinces, territories, the Federation of Canadian Municipalities and other stakeholders to develop a long-term plan for public infrastructure that extends beyond the expiry of the Building Canada plan.”

15. conclusion The efforts of the TBWG are appreciated by Ottawa The relationships, collaboration, and information-sharing that the TBWG facilitates are highly valued The TBWG will continue to be important to our future joint Canada-U.S. border transportation efforts Thank-you and keep up the good work!

16. Questions? Annette Gibbons, Director General, Surface Transportation Policy Transport Canada annette.gibbons@tc.gc.ca