Of course, that makes sense. What we are trying to avoid is creating this perverse incentive to use dirtier products because they are not subject to our carbon pricing regime.
I also want to ask about the whole notion of Buy American. A comment was made that it's a discriminatory policy, yet I note that the United States is party to most of the same trade agreements as Canada. My understanding of how Buy American is allowed is that the state and local governments that are actually making the purchases are, for the most part, not covered by trade agreements. I wonder to what extent Canada has the same flexibility at the provincial and local level. I know that the comprehensive agreement with Europe does apply at the subnational level.
I wonder if panellists could elaborate on how much flexibility we have in our federal system.