The challenge of getting the rules of origin in autos is recognizing that the current rules of origin were written in 1994 when the maximum amount of electronics in a car might be the trip computer where you press the button and reset. Now about 30% of the value of a vehicle—not the weight but the value—is in electronics, hard and soft. There are more lines of code in a Chevy Cruze than there are in a Boeing Dreamliner.
The rules that said 62.5% of a vehicle has to be locally sourced to sell tariff-free only told half the story. They missed all this new content. The effective rate was probably around 52% or 53%. The debate around the new rules is how we capture all those high added value pieces, both from a Canadian perspective and I know the Americans were after that as well, and not always chase those commoditized pieces that follow the lowest labour wage rate of pieces that went to Mexico. I think we've achieved that balance. It is a balance because if people such as David's members didn't commit to meeting those new standards because they were too high and the tariff penalty was too low, then my members wouldn't get anything out of it.
There's a balance struck across North America between the auto makers and the legislators and the suppliers that we are going to make a real effort to get there, and we're going to see some higher added value stuff come our way.