Saturday, May 1, 2010

Bridge owner accuses Canada of discrimination

Saturday, May 1, 2010
Matty Moroun is an American businessman who owns the Ambassador Bridge. His company has filed one NAFTA claim against Canada, and plans to file a second, over plans to build a second border crossing over the Detroit River.
 
The owner of the Ambassador Bridge between Windsor, Ont., and Detroit appears to be accusing the Canadian government of racism. The Detroit International Business Co., announced Friday it would file a claim against Canada under the North American Free Trade Agreement because Canada has offered to lend Michigan up to $550 million to help the state build its side of a new publicly owned bridge spanning the Detroit River.
The joint government project, called the Detroit River International Crossing, would see a $5-billion bridge built about five kilometres downriver from the Ambassador Bridge.
The Ambassador Bridge is owned solely by one man; billionaire U.S. businessman Matty Moroun.
"It is clear that the Canadian government is using its legislative power inappropriately to discriminate against an Arab-American businessman who has owned and operated the Ambassador Bridge for more than 30 years," said Patrick Moran, counsel for the bridge company.

Bridge owner fears loss of traffic

In a statement released Friday, the company accused Canada of influence peddling.
'It is clear that the Canadian government is using its legislative power inappropriately to discriminate against an Arab-American businessman who has owned and operated the Ambassador Bridge for more than 30 years.'— Patrick Moran, Ambassador Bridge lawyer
"The Canadian government is using its power inappropriately to coerce the Michigan Legislature into adopting legislation necessary to ensure the implementation of the [DRIC project to the detriment of necessary infrastructure projects in Canada and the U.S.," Moran said.
The company claims the only way to justify the construction of the government bridge is for the crossing to divert traffic from the three other border points in the area; the Ambassador Bridge, the Detroit-Windsor Tunnel, and the Blue Water Bridge in Sarnia, Ont.
The Ambassador Bridge is the busiest border crossing in North America, carrying more than 27 percent of the annual trade between Canada and the United States.
By offering to prop up Michigan financially to get the new project approved, "Canada is intentionally undermining a U.S. citizen's right to own and operate a business in Canada," Moran said.

2nd NAFTA claim

The NAFTA claim would be the second Moroun's company has filed against Canada in connection with the border project. On March 23, the bridge company filed a claim of arbitration under Chapter 11 of NAFTA seeking a ruling that Canada has breached its obligations under the agreement. The bridge company is looking for at least $3.5 billion in damages.
Moroun, 82, has said his grandfather's home in Windsor was torn down to build the Ambassador Bridge, which was completed in 1929.
Moroun bought the bridge on July 31, 1979.
In March, Forbes magazine listed Moroun at number 556 in its ranking of the world's richest people.
In February, Transport Canada said it has been in talks to buy the Ambassador Bridge but would not confirm Moroun's asking price or say whether a purchase offer has been made.

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