Ted Mackay, Director Highway, Border and Motor Carrier Policy Transport Canada April 24, 2013 OTTAWA UPDATE

Overview 1.Budget Progress on Border Issues 3.International Bridges & Tunnels Act 4.Other Priority Initiatives 2

3 Budget 2013: Overview Focus remains on jobs & economy Continue to implement Economic Action Plan Eliminate deficit & balance budget by No tax increases or transfer cuts However, significant challenges remain: Fragile global economy US, our biggest trade partner, continues to experience modest growth Euro area remains in recession Intensifying global competition from emerging markets Canada outperformed all other G-7 Economies in job creation and GDP growth over the recovery Only G-7 country to recapture lost jobs & business investment since global economic recession Over 950,000 new jobs created post recession

4 Budget 2013: Employment and GDP

Budget 2013: Funding 5 New large-scale, long-term infrastructure commitments, including: Investments in Federal Infrastructure Beyond the Border Action Plan Renewal of Building Canada Plan - $47B over 10 years  Community Improvement Fund  Building Canada Fund  P3 Fund $10B for federal transportation infrastructure over 5 years, including: –$127M for Canadian priority POEs –$25M over 3 years to advance DRIC project into pre-procurement –$125M for new St Lawrence Bridge in Montreal –$19M for highways and bridges in national parks –$81M over 4 years for federally-owned airports –$450M over 5 year for Small Craft Harbours Program –$53M over 2 years for Montreal’s Mercier Bridge –$113M over 5 years for passenger rail services

Progress on Border Issues Beyond the Border Progress Report released December 2012 Funding for infrastructure upgrades at key border crossings identified by Canada in the Action Plan: $ 47M for Lacolle, QC announced on March 27, 2013 $ 60M for Lansdowne, ON announced on April 2, 2013 $ 10M for Emerson, MB announced on April 2, 2013 $ 10M for North Portal announced on April 2, 2013 Border Infrastructure Investment Plan (BIIP#1) prepared for release Work underway on BIIP #2 6

International Bridges and Tunnels Act 7 New IBTA passed in Parliament in February 2007 Prior to Act there was no formal federal jurisdiction to manage and oversee international bridge and tunnel crossings Five-year statutory review of the Act undertaken in 2012 GoC approval now required for changes and new construction Voluntary approach taken to monitoring and reporting of security Responsibilities for administration resides among several branches at Transport Canada. The Government of Canada has the authority to impose penalties, including monetary, as well as potential deconstruction

Detroit River International Crossing Innovative partnership Presidential permit signed on April 12, 2013 Next steps include land acquisition and appointing International Authority to oversee construction, operation, & design bids for the bridge. Rail Freight Service Review Bill C-52 progressing through Parliament Provides shippers with right to service agreement & right to arbitration Applies to all federally-regulated railways for movement of freight rail traffic in Canada Rail Freight Service Review Bill C-52 progressing through Parliament Provides shippers with right to service agreement & right to arbitration Applies to all federally-regulated railways for movement of freight rail traffic in Canada Other Key Priorities 8

9 Trade Relations Concluding Canada-EU Comprehensive Economic and Trade Agreement current priority. Other priority negotiations include the Trans Pacific Partnership, & dedicated trade in services agreement among willing WTO Members. In addition, Department is fully engaged in negotiations with India, Japan and Morocco. Trade Relations Concluding Canada-EU Comprehensive Economic and Trade Agreement current priority. Other priority negotiations include the Trans Pacific Partnership, & dedicated trade in services agreement among willing WTO Members. In addition, Department is fully engaged in negotiations with India, Japan and Morocco. Canada/US Relations Continued cooperation Importance of leveraging where possible to ensure that border issues remain at forefront of agenda for both countries Canada/US Relations Continued cooperation Importance of leveraging where possible to ensure that border issues remain at forefront of agenda for both countries

Questions? Ted Mackay Director - Highway, Border and Motor Carrier Policy Transport Canada