1. Tom Oommen, Director Highway, Border, Motor Carrier Policy, Transport Canada October 23, 2013 OTTAWA UPDATE

2. Overview 1.New Minister 2.Economic Update 3.Progress on Beyond the Border 4.Other Priorities 2

3. NEW MINISTER Minister Lisa Raitt Appointed July 2013 Formerly Minister of Natural Resources Former President and CEO of Toronto Port Authority 3

4. ECONOMIC UPDATE Canadian economic expansion moderate: –2013 GDP: 1.7% increase (forecast) –YTD Exports: 0.8% increase from 2012 –YTD Imports: 0.5% increase from 2012 –In 2012, road transport accounted for 45% of exports to the U.S. ($152 billion) and 75% of imports ($215 billion). Canada and the European Union reached an agreement in principle on a comprehensive trade agreement. 4

5. PROGRESS ON CANADA-U.S. ISSUES Binational Executive Steering Committee led by PCO & White House continues to oversee implementation of Action Plan Beyond the Border Progress Report currently being drafted with a planned release of December Transport Canada is engaged in nine of 34 initiatives BIIP 2.0 Pre-Clearance Negotiations Pre-Inspection Pilot Regulatory Cooperative Council Progress has been made on 29 initiatives An agreement was reached between Transport Canada and the U.S. Department of Transportation to harmonize certain vehicle safety standards Public comment period ended in Canada on October 11 5

6. Rail On July 6th, 2013, a Montreal, Maine & Atlantic train derailed in downtown Lac-Mégantic. Sixty-three (63) crude oil tank cars ruptured and/or exploded causing 47 fatalities and significant infrastructure damage. A Transportation Safety Board (TSB) investigation is ongoing, as are similar actions by Transport Canada, Environment Canada, and the Sûreté du Québec. Results are expected to take several months. Growing North American oil production and a lack of pipeline capacity continue to drive significant increases in the movement of oil by rail. As such, community and environmental concerns regarding the safe transportation of oil by rail are expected to continue. Rail On July 6th, 2013, a Montreal, Maine & Atlantic train derailed in downtown Lac-Mégantic. Sixty-three (63) crude oil tank cars ruptured and/or exploded causing 47 fatalities and significant infrastructure damage. A Transportation Safety Board (TSB) investigation is ongoing, as are similar actions by Transport Canada, Environment Canada, and the Sûreté du Québec. Results are expected to take several months. Growing North American oil production and a lack of pipeline capacity continue to drive significant increases in the movement of oil by rail. As such, community and environmental concerns regarding the safe transportation of oil by rail are expected to continue. Other Key Priorities 6

7. Questions? Tom Oommen Director, Highway, Border and Motor Carrier Policy, Transport Canada 613-998-0674 tom.oommen@tc.gc.ca 10