Carney conceded 50% of net profits because that gives the baby his candy. But net profits is calculated after paying back the construction debt and interest which is wholly owned by Canada. In addition, there’s some sort of economic development fund that’s jointly contributed to by the Canada and US, not a bad idea I guess. The big concession was giving the US veto power over toll changes for the bridge.
Originally, Canada was to receive all profits and have complete power over toll prices until we recouped all our costs. At that point it would be 50/50.
The new deal is fine. I don’t know what the “caving in” narrative is about.
The ambassador bridge makes like $100M a year in revenue. The cost of the new bridge was $6.4B once you tack on interest there will be hardly any net profits left to split.
We both know the original deal was Canada was to receive all the toll money until the costs ($6.4B) was recouped. Now the USA receives half the tolls, or effectively $3.2B for contributing nothing. Those are just the facts. You can say it doesn’t matter, but it’s still $3.2B because of a shakedown, not a negotiation.
Ok so here’s the problem. In the politest way possible, you don’t understand the new deal.
Canada owns the 6.4B in costs to construct the bridge. This includes the debt and interest.
Canada WILL RECOUP ALL COSTS TO CONSTRUCT THE BRIDGE. DEBT WILL BE PAID OUT. YOU HAVE TO PAY THE DEBT AND INTEREST IN ORDER TO GET NET PROFITS.
After the debt is paid you get net profits. These net profits will now be split 50/50. Previously, Canada was to receive all of the net profits in an effort for Canada to recoup the costs of construction faster. Then the split would be 50/50.
Carney caved and is splitting the tolls with the USA.
No that’s not what happened.
Carney conceded 50% of net profits because that gives the baby his candy. But net profits is calculated after paying back the construction debt and interest which is wholly owned by Canada. In addition, there’s some sort of economic development fund that’s jointly contributed to by the Canada and US, not a bad idea I guess. The big concession was giving the US veto power over toll changes for the bridge.
That’s what was originally negotiated. Trump demanded the split immediately. Carney caved to open the bridge.
Originally, Canada was to receive all profits and have complete power over toll prices until we recouped all our costs. At that point it would be 50/50.
The new deal is fine. I don’t know what the “caving in” narrative is about.
The USA is collecting $3b because Trump stongarmed Canada.
How?
The ambassador bridge makes like $100M a year in revenue. The cost of the new bridge was $6.4B once you tack on interest there will be hardly any net profits left to split.
I’m sorry, but this argument makes no sense.
We both know the original deal was Canada was to receive all the toll money until the costs ($6.4B) was recouped. Now the USA receives half the tolls, or effectively $3.2B for contributing nothing. Those are just the facts. You can say it doesn’t matter, but it’s still $3.2B because of a shakedown, not a negotiation.
Ok so here’s the problem. In the politest way possible, you don’t understand the new deal.
Canada owns the 6.4B in costs to construct the bridge. This includes the debt and interest.
Canada WILL RECOUP ALL COSTS TO CONSTRUCT THE BRIDGE. DEBT WILL BE PAID OUT. YOU HAVE TO PAY THE DEBT AND INTEREST IN ORDER TO GET NET PROFITS.
After the debt is paid you get net profits. These net profits will now be split 50/50. Previously, Canada was to receive all of the net profits in an effort for Canada to recoup the costs of construction faster. Then the split would be 50/50.
Nope. Tolls are split immediately.