I think that I just explained our point of view regarding shipbuilding. In our consultations, the representatives of the industry said that they were much more worried and concerned with the negotiations with Norway, which is a member of the European Free Trade Association, than with the negotiations with Korea. They want to discuss with government representatives about the possibility of a new political framework.
With your permission, I will continue in English. It will be easier for me because I will be using some rather technical terms.
The challenges, as I was saying in response to the earlier question, are I think much larger than the question of trade liberalization. We've seen a sector in Canada under considerable pressure for many years, even with the 25% tariff. I think the industry understands that.
In the context of the trade negotiation, certainly we are aware of the sensitivities, and we would be trying to accommodate those sensitivities in how we approach specific provisions in the agreement. Certainly in areas that are sensitive for Canada we would not be looking for an immediate phase-out of the tariff. We would be looking for a fairly long transition period to facilitate the entry into force of that agreement.
The other important point to note is that one of the most important aspects for the industry has been procurement decisions by governments in Canada. We will do nothing in the free trade agreement to compromise the ability of governments in Canada to procure made-in-Canada ships should they wish. We exempt shipbuilding from the procurement obligations that we take in our trade agreements, and that would remain in place.
Canada also has the Coasting Trade Act that puts certain restrictions on the kinds of ships that can ship in inland waters in Canada, and we would fully reserve that legislation in the context of the free trade agreement. We would do nothing to compromise that legislation.
My sense is that the concerns from that sector can be managed in the context of the negotiations with Korea.
Now I would like to give the floor to Gilles Gauthier so that he can answer your third question.