The concerns we had heard were that markets in Malaysia and Australia are not accessible to Canadian vehicle manufacturers to benefit from the tariff reduction. In other words, in a country like Malaysia, that has, I believe, a 30% automobile tariff, if a Canadian vehicle manufacturer wanted to export a vehicle to the Malaysian market, to benefit from the duty-free or 0% tariff, it would have to meet the rule of origin that demonstrated that 45% of the value of the Canadian-made car was sourced from parts within the CPTPP region.
In our estimation, our auto producers could not meet that 45% threshold without being able to count U.S. parts in the agreement. U.S. parts no longer count because the U.S. is not a party to the agreement. Therefore, we felt we were being put at a disadvantageous situation—punished if you will—because the United States opted to walk away. We negotiated that rule of origin in the final days of the TPP negotiation, based on the integration of the North American market. Our concerns were, even though today, those aren't commercially significant markets to our vehicle producers, we wanted to ensure those markets were open to them.