In the original agreement, we would have been able to meet the 45% rule of origin for the value of an automobile, given that a significant number of parts sourced from the United States would be counted in a Canadian-made vehicle. Without the United States in the agreement, we could not meet that 45% threshold in all cases.
We looked at the countries with which we already had a free trade agreement and, therefore, had duty-free access. Then there were three other countries, including Japan, that had a most favoured nation tariff of zero. Aside from those countries, there were three that had prohibitive tariffs: Australia, Malaysia, and Vietnam.
The side letters we were able to negotiate and sign with Australia and Malaysia basically provide us with more liberal rules of origin, given the fact that we would not have been able to meet the 45% threshold to sell cars in their markets duty-free. In the case of Malaysia, there is a 30% auto tariff. In Australia, it's much lower.
Even though these are not, at present, key export markets for Canadian vehicle manufacturers, we wanted to ensure there was a level playing field and that they had access to those markets on a duty-free basis.