Thank you, Chair.
It's an interesting conversation with respect to the risk of tariffs. Europeans have mused about this at least for five years now in a serious way, and the Americans seem to be contemplating it in legislation as well. If this were another issue for the government, such as the imposition of a potential tariff on Canadian goods going across the border to the U.S. or across the ocean to Europe, I wonder if they would be taking it slightly more seriously.
We saw the “buy America” reaction from this government, which was a full court press trying to reverse it. It was unsuccessful in the end, but the effort was certainly there. We have some similar risk, I would suggest, on the horizon.
There was an attempt by some of my colleagues to somehow link the notion of differentiated targets between us and the U.S. to a differentiation in price, but I'm confused by that line of logic simply because an integrated cap-and-trade market achieves and establishes a price per tonne of carbon. And I'm taking the European example, for example, where countries have differentiated targets, they trade upon the same market, but the price for a German tonne of greenhouse gas is no different from a French or a Belgian tonne. Am I right?
Just for clarity for the record, the witnesses both nodded “yes”.