I would suggest that opening up the markets and eliminating the withholding tax would actually lead, all other things being equal, to greater rate competition. The possibility of a withholding tax can create a differential in rates where one would not otherwise exist.
There are many other factors, of course, that can lead to differences in interest rates. In this case, the tax wedge that a withholding tax can create is not, in our view, a helpful one to have. While we all recognize the need to have taxes in certain circumstances, this does not seem to be one that is productive for the Canadian economy.