Transportation Border Working Group Chicago Plenary - Ottawa Update April 29, 2009 Ted Mackay, Transport Canada

2 Agenda Canadian Economy and Transportation Budget 2009 – Stimulus Plan Unprecedented Commitment to Infrastructure Gateway Initiatives - Update Engaging the New U.S. Administration

3 Economic decline since early 2008 with GDP growth slowing to 0.5% Difficult to predict the end of the recessionary cycle Canada’s is still the U.S.’s top destination for exports and second only to China as source of imports Major declines in both imports and exports due to automotive sector declines Double-digit declines in truck traffic at some border crossings and an overall 8% decrease for Rail traffic has also shown double-digit decreases in forest and cars and parts. Canadian Economy and Transportation

4 Budget 2009 – Stimulus Plan $40 billion economic stimulus package (2.5 per cent of GDP) over two years Accelerates and expands federal infrastructure funding under the $33 billion Building Canada Plan ($12 billion in new funding over two years). New initiatives ($4 Billion Infrastructure Stimulus Fund, $1B Green Infrastructure Fund, $1 billion Community Adjustment Fund) Funding to refurbish / upgrade federally-owned infrastructure ($716 million over two years)

5 Land Border Investments Map Overview of all major Canadian post-9/11 land border infrastructure investments (approach roads & plazas) Canada has committed $4.5 billion for border infrastructure since 9/11. Map Includes: Thirty-four (34) project descriptions with several inset maps List of busiest crossings (including NEXUS/FAST capability) Depiction of Canada’s major gateways and trade corridors

6 Gateways and Border Crossings Fund (GBCF) National merit-based fund ($2.1 billion) aimed at improving the flow of goods and people between Canada and the world by enhancing infrastructure at strategic locations International bridge crossings owned by federal Crown Corporations have become eligible recipients Measures to streamline the project selection criteria and approval process thereby accelerating infrastructure investments Projects announced under the Fund include Detroit-Windsor, Queenston-Lewiston, the Canadian plaza at Lacolle, some Trans- Canada highway projects, and Route 1 in New Brunswick

7 Canada’s Three Gateway Strategies Prince Rupert Vancouver Montreal Halifax Asia-Pacific Gateway and Corridor Initiative Ontario-Québec Continental Gateway and Trade Corridor and Trade Corridor Atlantic Gateway North America's closest major ports to Asia North America's closest ports to Europe and ships transiting the Suez Canal

8 International Bridges and Tunnels Act Passed in Parliament in February 2007 Regulations came into force in February 2009 Security assessment of international tunnels and bridges currently underway Work will include consultations, site visits, risk assessments and a comprehensive security program

9 Engaging the New U.S. Administration Recent meetings: Obama / Harper (Feb. 2009) Cannon / Clinton (Feb. 2009) Baird / LaHood (Mar. 2009) Van Loan / Napolitano (Mar. 2009) Lute / Louis Ranger (Apr. 2009) Engagement with the new US Administration a very high priority for the Canadian Government Canada committed to border infrastructure and management improvements

10 Future Considerations: Secure, efficient and reliable border crossings 1)Integrated management of commercial and passenger traffic at key border crossings 2)Improved planning and coordination of border infrastructure 3)Closer Canada-US alignment and cooperation on north-south gateways, corridors, and freight flows 4)Support the adoption of supply chain security measures throughout the supply chain, to reduce risks and delays at border crossings 5)Harmonize where feasible and effective cross-border processes

11 Conclusions A secure and efficient Canada-U.S. border is a matter of national and economic security and will remain a priority in both countries Canada continues to make unprecedented investments in infrastructure, including over $4.5 billion for border infrastructure since 9/11 Canada continues to develop its strategic gateways and trade corridors with the Ontario-Québec Continental Gateway and Atlantic Gateway strategies expected by the fall of 2009 Bilateral planning and coordination with new U.S. Administration is a priority for the Government of Canada