Border tolls, Windsor-Detroit Bridge, Digital Diplomacy

A border-crossing fee is exactly what the U.S. and Canada do not need

Colin Robertson  Special to The Globe and Mail Wednesday, Apr. 24 2013

Margaret Atwood once remarked that if the national mental illness of the United States is megalomania, that of Canada is paranoid schizophrenia.

But is paranoia towards the United States justified? Not usually. Take a closer look at reports of a new border-crossing fee that are creating a lot of noise.

This is not protectionism. Rather, the across-the-board budget cuts mandated by U.S. laws (the “sequester”) have obliged all departments to become more creative in funding. Within the 2014 Department of Homeland Security budget is a recommendation to conduct a study on whether to collect a fee from pedestrians and vehicles crossing between the United States and Canada by land.

The new revenue, Secretary Janet Napolitano told Congress, would pay for the hiring of new customs and border officers. There might be something for us in the scheme as without new staff, the chances of getting pre-clearance at Toronto’s Island Airport are slim. But the first call will be to staff the southern border because enforcement will be a key part of any new immigration deal.

Unlike budgets in Canada, however, what goes into the congressional legislative process bears little resemblance to what comes out the other end. This is why the U.S. legislative process has famously been compared to sausage-making.

The checks and balances inherent in the U.S. system mean that regional and sectoral interests can also be counted on to block such initiatives.

A new toll “is the absolute last thing we should be doing if we want to grow the economies of Western New York and the U.S.,” warned Buffalo Congressman Brian Higgins. “To slap travellers here with onerous fees is a bad idea,” argued New York Senator Chuck Schumer. “We don’t need a study to tell us that.”

There is also the practical problem.

An estimated 400,000 people and 140,000 cars cross our border daily. Does the U.S. really want to slow down traffic and turn the border agents into toll collectors when their primary task is to look for bad guys?

We need to distinguish between what is noise – the Homeland Security proposal – and what is important.

What is important is that the biggest infrastructure project at our largest border gateway – the new Detroit-Windsor bridge – was recently given a Presidential permit with the backing of nine D.C. agencies.

The bridge odyssey has taken 14 years and constant effort by our Detroit consulate and the Ontario and Canadian governments. We are fronting a half-billion dollars for its construction, which is also the estimated daily value of the goods that cross this vital gateway. There will be more bumps before the traffic flows, but we are at the beginning of the end.

The lesson we can draw from both the DHS kerfuffle and the bridge saga is that we need to wage a permanent campaign in the United States on behalf of Canadian interests.

We need a thousand points of contact to complement our embassy and our consulates. This means taking our game to the States because by the time a problem reaches Congress we are fire-fighting.

Recent budget paring in Canada has reduced our consulates in the United States to fifteen. Yet, what we need is representation in every state. We can do it, within budget, by doing diplomacy differently.

Recruit talent from the Canadian expatriates who are already living in each state. Let them practice digital-age diplomacy. Drop the black tie for a BlackBerry and a working knowledge of new media.

With some exceptions – our embassy’s prime location on Pennsylvania Avenue is crucial, and the Los Angeles consul-general’s residence is a second home for Canada’s entertainment industry – these diplomats can work from their homes or incubator offices to spot opportunities for trade and investment.

As U.S. Ambassador David Jacobson repeatedly reminds us, the most important thing the United States can do to help the Canadian economy is to get the U.S. economy back on track. For 35 American states, their principal export market is Canada.

This trade supports nearly eight million U.S. jobs, a fact not lost on President Barack Obama, who has promised to ‘export’ the U.S. back into prosperity. Last year U.S. exports to Canada exceeded total U.S. exports to China, Japan, South Korea and Singapore combined.

Canadian exports to the United States were almost three times greater than our combined total to the rest of the world. Trade with the United States represents almost half of our GDP.

A half century ago, Minister of Trade and Industry George Hees encouraged members of Canada’s Trade Commissioner Service to ‘bust your ass’ for Canada. The instruction stands.

A former diplomat, Colin Robertson is senior advisor to McKenna, Long and Aldridge LLP and vice president of the Canadian Defence and Foreign Affairs Institute.

UPDATE:

Sen. Leahy wins ban on border fee as Senate Judiciary marks up immigration bill

Posted on May 9, 2013 by Nancy Remsen

Here’s the latest from Sen. Patrick Leahy, D-Vt., on the immigration bill being worked on in the Senate Judiciary Committee.
A news release from his office reads as follows:

On a bipartisan voice vote, Thursday approved legislation authored by Chairman Patrick Leahy (D-Vt.) and cosponsored by Sen. John Cornyn (R-Texas) that blocks the creation of a land border crossing fee.

The amendment was Leahy’s first to file and be offered to the Border Security, Economic Opportunity and Immigration Modernization Act, which the Judiciary Committee is currently considering. The amendment responds to a request by the Department of Homeland Security (DHS) in the Obama Administration’s budget to study charging admission for pedestrians and passenger vehicles crossing land borders into the United States.

Leahy, who represents one of the ten states that border Canada, said such a fee would deflate thriving commerce that is important to all the Northern Border states, and it would limit cultural interchange.

“Canada is the United States’ number one trading partner. Some 300,000 Canadians cross into our country every day and spend nearly $235 million,” said Leahy, who earlier this week released a guest column on the issue. “Our nation has always had strong cultural and commercial ties to our neighboring countries, and my amendment would protect these important relationships.”

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A Primer to the State of the Union

Obama’s State of the Union: A Canadian primer

By | Feb 12, 2013 1:05 pm

What is the State of the Union (SOTU)?

He shall from time to time give to Congress information of the State of the Union and recommend to their Consideration such measures as he shall judge necessary and expedient.
Article II, Section 3 of the U.S. Constitution

With this constitutional requirement in mind, each president gives an ‘Annual Message’ to Congress. The practice is also followed by some states where the governor will give a ‘state of the state’ address.

George Washington and John Adams spoke to joint sessions of Congress but Thomas Jefferson made it a written report because he considered the speech too ‘monarchial’. In 1913, Woodrow Wilson restarted the practice. Since Franklin Roosevelt the speech is given in late January or early February. The phrase ‘state of the union’ or SOTU in Beltway speak, is attributed to Franklin Roosevelt. Roosevelt also began the practice of a night-time address in recognition that with the advent of radio, his audience was not just those in the chamber but the American public who listen and now watch. In 1997, Bill Clinton began the practice of live streaming the SOTU on the web. Last year’s State of the Union address reached 48 million people, according to Neilsen.

What happens?

There is a protocol to the SOTU beginning with the Speaker of the House formally inviting the President to address a joint session of Congress.

Tonight,  members of the House will assemble in their chamber and at approximately 830PM EST the Deputy Sergeant-at-arms announces the arrival of the Vice-President and members of the Senate.

They are followed by the Dean of the Diplomatic Corps, the Chief Justice and Associate Justices, the Cabinet and the Joint Chiefs of Staff all of whom seated nearest the rostrum.

By tradition, one cabinet member is designated to stay in a secure location  –the ‘survivor’ to ensure continuity and, since 9-11,  this has also included a few members of Congress. Traditionally the members sit by party. This was obvious in the applause (or lack thereof) but after the Tucson shooting of Representative Gabby Giffords, there has been a mixing of members.

Just after 9PM the House Sergeant-at-Arms in stentorian voice will announce: “Mister Speaker, the President of the United States!” He makes his way slowly through the crowd and takes his place at the House Clerk’s desk and then hands copies of his speech to the Vice President and Speaker. They sit behind him in the Speaker’s desk. The Speaker then proclaims: “Members of Congress, I have the high privilege and distinct honor of presenting to you the President of the United States.”

The Speech

The President speaks to his agenda and the state of the union for about an hour. George Washington favoured brevity. His address was 10-15 minutes.

The address usually focuses on domestic policy – Lyndon Johnson declared a ‘war on poverty’ in 1964.  There is often a strong foreign policy component. James Monroe declared the doctrine that bears his name in 1823. In 1941, Franklin Roosevelt proclaimed the ‘Four Freedoms’. In 2002, George W. Bush described North Korea, Iran and Iraq as the ‘axis of evil.’

Since Ronald Reagan, with an eye for stagecraft, the speech will contain references to individuals, sitting close to the First Lady, like Larry Skutnik, the hero of the Air Florida flight that crashed into the Potomac in January, 1982.

Since Lyndon Johnson’s 1966 SOTU, the opposition party has followed the speech with a televised address of rebuttal. Senator Mario Rubio of Florida, featured on the cover of this week’s Time Magazine as “the Republican Savior”, will give this year’s GOP response in both English and Spanish.

What are the Canadian interests?

Listen in particular for references to climate change and trade.

The President resurrected climate change as a priority in his Inaugural Address knowing that the failure to do so would betray our children and future generations. Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires, and crippling drought, and more powerful storms. The path towards sustainable energy sources will be long and sometimes difficult. But American cannot resist this transition. We must lead it…”

Legislative effort in his first term sputtered out in the Senate after the then Democrat-controlled House of Representatives had passed a bill (Waxman-Markey) that would have created a cap and trade system on green-house gas emissions with mandates for renewable energy generation, subsidies for wind, solar and other ‘green’ energy, as well as a renewable electricity standard (RES). From the Canadian perspective we want to ensure that our big hydro projects in British Columbia, Manitoba, Quebec (and eventually Labrador) are included in the definition of RES.

Cap and trade would potentially raise the costs, in the short term, for American manufacturers there was suggestion that a levy would be assessed on goods from countries that did not have the same energy standards as the US. While aimed at China there was always the potential that Canada could get side-swiped because of the oli sands.

The President has set an “all of the above” approach to achieving US energy independence. This includes the potential increase in supply of both offshore and inshore oil and especially natural gas through fracking although this is still in its infancy. Environmentalists point to contamination of water and air.

Energy from Canada and Mexico play into the energy independence scenario.

Our immediate interest is the permit for the XL pipeline. This is the second application. The first application was denied in January, 2012 after Nebraska expressed concerns about its routing through the Ogallala Aquifer, that Governor Dave Heineman described as “the lifeblood of Nebraska’s agriculture industry”. The route was changed. After an extensive inquiry by the Nebraska Department of Environmental Quality, Governor Heineman wrote (January 22) the President and Secretary Clinton saying that Nebraska now favours the pipeline.

The permit for the pipeline is granted through the State Department. Foreign Minister John Baird raised it Friday (February 8) when he met Secretary of State John Kerry. Kerry was non-committal noting that the environmental assessment was currently underway but he “agreed to stay in touch on the Keystone pipeline.”

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This coming Sunday (February 19) exhorts the Sierra Club website (and its ally 350.org) “thousands of activists will head to the White House and tell President Obama to shut down the climate-killing Keystone XL pipeline once and for all”. They promise it will be the “biggest climate demonstration yet”  against “Big Oil”. Their goal is “to form a massive human pipeline through Washington and then transform it into a giant symbol of the renewable energy future we need and are ready to build, starting right away.”

The XL pipeline has become as a rallying point for environmentalists and other activists in the same fashion as was the debate over ‘clear-cutting’ in the Great Bear Forest and the seal hunt. But the strategic value of Canadian oil and gas is not lost on the Pentagon. As for the US environmentalist movement, Prime Minister Harper has tartly observed in the context of the Northern Gateway application that “just because certain people in the United States would like to see Canada be one giant national park for the northern half of North America, I don’t think that’s part of what our review process is all about.”

The oil sands and XL debate underlines why we have to get our oil and gas by pipeline, rail or truck to tidewater ports on the Pacific or Atlantic coasts if we are to diversify our markets and get a better price for our product.

Trade between Canada and the US continues to be the biggest between any two nations.

Trade generates jobs and with the American public consistently putting the economy and jobs at the top of their priority list it will feature large in the SOTU. The President has promised to double American exports. Last year a study commissioned by the Canadian Embassy concluded eight million jobs in the US depend on trade with Canada and that for 35 American states Canada is their main export destination.

If the President talks about infrastructure then we can hope for an early permitting of the proposed new Second Crossing between Detroit and Windsor. This is our busiest commercial gateway and it has encountered many obstacles including a ballot initiative sponsored by the Ambassador Bridge owner that was defeated in November. As Ambassador Doer remarked at that time, the bridge will create 10,000 – 15,000 direct construction jobs in Michigan. Michigan’s share of the bridge cost, estimated to be $550 million, will be paid by the Government of Canada and recouped through bridge tolls. Any cost overruns or revenue shortfalls will be paid by Canada. The bridge will be built with U.S. and Canadian steel.

Departing Secretary of Transportation Ray Lahood talked positively of the project last week saying that “I think everything is possible in Michigan when it comes to transportation. I think of the leadership of the governor (Rick Snyder) with Canada on the bridge crossing; what that will mean in terms of jobs, what that will mean in terms of the kind of relationship we have with Canada in terms of exports and imports. They need to get this project under way, get it done, and continue this kind of continuity of leadership that exists.”

Access to the US market is always a top Canadian priority.

A pair of initiatives launched by the President and Prime Minister in February, 2011 put aside the false choice between security and trade recognizing that economic security is vital to North American competitiveness. The initiatives are aimed at improving border access and regulatory cooperation based on the principle of “cleared once, inspected twice”. Process can be a placebo for action,  but in this case process is progress because we need to see attitudinal change on the part of those who mind the border.

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Detroit River Crossing

Excerpted from The Windsor Star ‘New Bridge Need grows stronger’ December 31, 2011

The new Windsor-Detroit bridge may still be waiting for final legislative approval in Michigan, but one thing is certain – the case for building the downriver crossing is rock solid. The economies of Ontario and Michigan and Canada and the U.S. need the bridge to sustain hundreds of thousands of jobs and create new ones.

Over the past year, Michigan Gov. Rick Snyder has continued to champion the project and, despite the politicking of a handful of Michigan lawmakers, has vowed to get the bridge built.

The sense is that Snyder will move to push the project forward in the new year, and he will do so with the full support of President Barack Obama, Prime Minister Stephen Harper, Ontario Premier Dalton McGuinty and virtually everyone in the Canada-U.S. business community who understands that our essential trading relationship can no longer be held hostage by a few individuals.

As we approach the start of 2012, it’s a good time to refocus on the need for an updated and efficient border to ensure future growth on both sides of the border.

First, this isn’t just a Windsor-Detroit issue. We are at the heart of the Great Lakes-St. Lawrence region which represents the fourth largest economy in the world – $4.6 trillion in economic output in 2009. More than $2 billion in good and services goes back and forth across the border every day, including $356 million through Windsor-Detroit.

Second, consider the numbers that have been used to support a new publicly owned downriver bridge:

. Bilateral trade supports more than eight million U.S. jobs, including 220,000 in Michigan. One of three Canadian jobs rely on U.S.-Canada trade.

. Canada is Michigan’s largest trading partner, purchasing 58 per cent of all Michigan’s foreign-bound goods. In 2008, trade between Canada and Michigan reached $67.4 billion.

. Annual trade between Canada and the U.S. is more than $500 billion a year and one-quarter of that trade relies on the Windsor-Detroit crossing.

. Commercial truck traffic is expected to increase more than 100 per cent by 2035.

All of those figures add up to the need for a modern, publicly owned bridge on the Detroit River. And the case for the new bridge was eloquently argued last summer by former Michigan Gov. James Blanchard and Colin Robertson, a former Canadian diplomat and senior strategic adviser with McKenna Long & Aldridge LLP

“The 105 million people living in the (Great Lakes-St. Lawrence) region today need their respective governments to continue to work together on the border. To remain the world’s fourth largest economy, the region needs a second Detroit-Windsor crossing.

“Our most integrated trade industry by far, the production and assembly of automobiles is concentrated in the Great Lakes region. This ‘industry of industries’ draws in hundreds of feeder manufacturers in dozens of locations in Canada, the United States and Mexico.

“But the top priority has to be the construction of a second bridge between Windsor and Detroit. In the 7,000 trucks that daily cross the Ambassador Bridge are contained over a quarter of the goods traded between Canada and the U.S. Any interruption in traffic on this 80-year-old, privately owned bridge means layoffs: thousands in the first day and tens of thousands stretching south to the Carolinas by day two. Resiliency, national security and the national interest of both countries requires us to build a second crossing, the new International Trade Crossing.”

As we usher in the new year, it’s time to get the shovels in the ground.
Read more: http://www.windsorstar.com/news/bridge/5931698/story.html#ixzz1iOplJvBr

Could the Great Lakes be a model for Canada-US regional cooperation?

From Canadian International Council Think Tank: Could the Great Lakes Represent Canada’s Economic Future? July 6, 2011

While he didn’t get the details right, Joel Garreau was onto something when he wrote Nine Nations of North America in 1981. Too often, we look at North America as three nations, when in fact it is also comprised of 94 states, provinces, and territories. In economic terms, supply-chain dynamics have made North America a series of regions.

The most dynamic is the Great Lakes-St. Lawrence Region (GLSLR). Home to nearly 35 million people, and with a population slightly larger than Canada, the two provinces (Ontario, Quebec) and eight states (New York, Pennsylvania, Illinois, Michigan, Wisconsin, Indiana, Ohio, Minnesota) of the Great Lakes region constitute a super “economy,” which is only eclipsed in gross domestic product by the U.S., Japan, and China.

Regions deserve greater attention, especially into the vital supply-chain dynamics that sustain them. Last year, the Brookings Institute’s Jennifer Vey, John Austin, and Jennifer Bradley co-authored a paper that argued that, notwithstanding the affliction of the “Rust Belt,” the GLSLR “still has many of the fundamental resources – top-ranked universities, companies with deep experience in global trade, and emerging centres of clean-energy research, to name just a few – necessary to create a better, more sustainable, economic model.”

Building on this work, the Mowat Centre’s Joshua Hjartson, Matthew Mendelsohn, Allison Bramwell, and Kelly Hinton released The Vital Commons, in which they argue that “the wealth and infrastructure built over the 20th century” in the GLSLR “created the foundation for new emerging sectors” in areas including financial services, health care, food processing, energy, aerospace, information and communications technology, transportation, and pharmaceuticals. But a shared future for the GLSLR requires a shared vision “to act and think collectively, transcending national boundaries to address shared problems, manage shared resources, and take advantage of new economic opportunities.”

With this objective in mind, under the umbrella of the Mowat Centre and Brookings Institute, over 300 participants met in the St. Clair College Centre for the Arts, a short walk from the banks of the Detroit River looking north to Detroit. Over two days (June 21-2), we listened, discussed, and debated through a couple dozen plenaries, keynotes, and idea labs constructed around issues in the GLSLR, including human capital, transportation and infrastructure, water, trade and border issues, agriculture, innovation, manufacturing, clean energy and electricity, the blue economy, and tourism.

The challenge of the border for the GLSLR was brought home on the first evening, when delegates crossed the frontier and, notwithstanding the hope of pre-clearance, were obliged to go through a secondary search before re-boarding the buses taking them to enjoy the hospitality of Canadian Consul General Roy Norton in downtown Detroit’s Max Fisher Music Center.

If we are to be truly competitive, we must find a better way of managing the legitimate passage of people and goods. The Beyond the Borders Initiative launched in February by Prime Minister Stephen Harper and U.S. President Barack Obama offers promise, but as former premier Gordon Campbell told delegates, political will also requires considerable behind-the-scenes work by business and government.

The GLSLR contains our busiest border crossings and, because so much of the boundary line is on water, the border is dominated by bridges. This presents unique challenges for just-in-time delivery. The first step should be the easiest: having inspection for all government services at each of the region’s crossing available 24/7, because our competition overseas does not work 9-5.

But the top priority in the GLSLR has to be the construction of the New International Trade Crossing between Windsor and Detroit, especially as the recovery picks up speed – trade between Michigan and Canada rose 43 per cent from 2009 to 2010. The 7,000 trucks that cross the Ambassador Bridge daily contain over a quarter of the goods traded between Canada and the United States. Any interruption in traffic on this 80-year-old, privately owned bridge means layoffs: thousands in the first day and tens of thousands stretching south to the Carolinas into day two.

The need for a new crossing was one of the key themes of the two-day conference, and was driven home by both American and Canadian participants. Michigan Senate Majority Leader Randy Richardville acknowledged that special interests and the spending of lots of money have circumvented and delayed what should be an obvious task, but he promised delegates that, by the fall, he and Governor Rick Snyder should have the votes to secure passage through the Michigan legislature.

It can’t be soon enough for those who live and work in the GLSLR. The international competition is not waiting for us to get our act together.

Knitting the various components of regional co-operation together is the Pacific Northwest Economic Region (PNWER). Its core is the continuing support of legislators in five states (Alaska, Washington, Oregon, Idaho, Montana), three provinces (British Columbia, Alberta, Saskatchewan), and two territories (the Yukon and the Northwest Territories). This year, it celebrates its twentieth anniversary. Based in Seattle, with a small, very efficient secretariat, it works because it is a true non-partisan, bi-national, public-private partnership. As former premier Campbell acknowledged, it was PNWER, working, under his direction and that of Washington Governor Chris Gregoire, with a grassroots movement, that persuaded Homeland Security to accept the “smart drivers’ licence” as a practical means to address cross-border traffic during the Vancouver Olympics. The “smart drivers’ license” has seen been rolled out by states and provinces on both sides of the 49th parallel. It confirms another observation from the Windsor Summit: When provincial and state legislators get their acts together, federal governments join the parade.

Conferences are brain food, but it is the follow up in ideas and proposals that makes them practical to policy-makers. The Windsor Summit leadership of John Austin and Matthew Mendelson intend to carry the momentum forward and, in October, release a revised version of The Vital Commons that will identify actionable agenda items for various sectors in the GLSLR.

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Detroit River International Crossing

Excerpted from Windsor Star editorial Lakes Summit June 21, 2011

Today, about 250 individuals from business, government and non-profit sectors will meet in our community to lay out a game plan for the future of the Great Lakes-St. Lawrence region. As much as it is a discussion, the summit will hopefully set the stage to ensure a climate of prosperity and health for our children and their children…

As a whole, the Lakes region represents the fourth largest economy in the world -$4.6 trillion in economic output in 2009. More than $2 billion in good and services goes back and forth across the border every day, including $356 million through Windsor-Detroit.

That trade is also the reason the region needs a modern, publicly owned bridge built on Detroit River. And the case for a new bridge was eloquently argued by former Michigan Gov. James Blanchard and Colin Robertson, a former Canadian diplomat and senior strategic adviser with McKenna Long & Aldridge LLP, also in the Post last week:

“But the 105 million people living in the region today need their respective governments to continue to work together on the border. To remain the world’s fourth largest economy, the region needs a second Detroit-Windsor crossing.

“The Canada-U.S. Auto Agreement set the course for the Canada-U.S. Free Trade Agreement, and subsequently NAFTA, back in 1965. Our most integrated trade industry by far, the production and assembly of automobiles is concentrated in the Great Lakes region. This ‘industry of industries’ draws in hundreds of feeder manufacturers in dozens of locations in Canada, the United States and Mexico.

“But the top priority has to be the construction of a second bridge between Windsor and Detroit. In the 7,000 trucks that daily cross the Ambassador Bridge are contained over a quarter of the goods traded between Canada and the U.S. Any interruption in traffic on this 80-year-old, privately owned bridge means layoffs: thousands in the first day and tens of thousands stretching south to the Carolinas by day two. Resiliency, national security and the national interest of both countries requires us to build a second crossing, the new International Trade Crossing.”

All that’s needed for the much-needed project to get underway is the final approval of Michigan lawmakers. We hope the new bridge -which governments on both sides of the river have been planning for years and is literally shovel ready -figures prominently in the important discussions that will take place over the next two days.

Excerpted from Windsor Star June 21 Michigan DRIC vote delayed until fall Politicians slam Ambassador Bridge ‘misinformation’ campaign By Doug Schmidt

The owners of the Ambassador Bridge are trying to block construction of the proposed downriver public crossing in favour of their own proposal to twin the existing, private span that is over 80 years old.

The summit, being hosted by the Toronto-based Mowat Centre and the Washington, D.C.-based Brookings Institution, is being held to look at ways to untap the economic potential of a region that, if it were a country of its own, would boast the world’s fourth-largest economy.

“It’s crazy that the world’s greatest trading relationship is being held up in the way it’s being held up,” Mowat Centre director Matthew Mendelsohn told The Star.

“It’s real, real important that we win this battle,” William Rustem, Gov. Snyder’s director of strategy, told one of the summit sessions.

“We have to be optimistic — certainly on the Ontario side, we’re ready to go,” said cabinet minister Smith.

Colin Robertson, a career foreign service officer and senior research fellow of the Canadian Defence and Foreign Affairs Institute, told delegates he was recently in China where “they built a bridge in six months.” Referring to the 10 years of debating a new Windsor-Detroit crossing, he said: “The rest of the world is not waiting for Canada and the U.S. to get its act together.”

The summit concludes Wednesday.

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