Thank you very much.
I think everybody around the table are concerned about jobs, Canadian jobs. Again, coming from a manufacturing community, there's a recognition that Canada in particular relies on trade. I take your comment quite well about coming to Canada to sell to the United States. Moving forward, for the immediate future, we have to position ourselves to be competitive internationally, as North Americans, and trade is just a part of that.
As Mr. Hoback said, if you're just looking at trade agreements, we should be the place to be, but we have to look at the big picture. I hear about the high cost of energy over and over in Ontario, because of bad policy, regulatory uncertainty, productivity, taxes and things along those lines.
According to LevaData, this deal will likely increase the cost of production in Canada. I think it was 41% of 100 U.S.-based auto executives said that the costs of manufacturing here will go up at least 10% and up to 25% over the next three years. That means higher costs for consumers. My worry is that tipping point. As I said earlier, it may get to a point where instead of building in North America, some manufacturers may just say that it's too complicated and too costly especially in Canada and they're just going to pay the 2.5% tariff.
What should the Canadian government do to make sure that we can use this agreement to its full potential, so that we remain competitive and don't get to that tipping point where we lose the supply chain jobs building those products here in North America?
Flavio, maybe you could start, and then Dave.