Well yes, there is a difference in the most recent obligations taken on, as of December 10. There will be a requirement on steel that, after seven years, auto manufacturers that are purchasing steel will have to ensure that it's smelted and poured within North America.
With respect to aluminum, that condition at this point does not yet exist, although we do have an obligation that after 10 years we will revisit that. That 10 years is not a hard line. In fact, we will be looking very closely at what kinds of volumes of aluminum are coming into the North American market, particularly into Mexico, and if we start to see there are significantly increased amounts of aluminum coming into Mexico, then we will have an increasingly strong case to say that aluminum needs to be treated the same way as steel is treated.
Part of this has been misunderstood. The requirement that exists in the agreement when it comes into effect is that 70% of any purchases of steel and aluminum by manufacturers have to be of North American origin. But couple that with the 75% requirement for any vehicle to have regional value content; and on top of that, 75% of the core parts—including engines, transmissions, bodies, various other elements—have to be of North American market; and 40% of the value of the vehicle has to be produced in jurisdictions that have wage rates greater than $16 U.S. an hour. When you take the combination of all those elements, you don't have that much scope to bring in a lot of foreign product.
This is something that has been a bit misunderstood because there are certain elements—and Martin can add to this—or products that aren't produced within North America. For the most part, the screens that we have in cars are not produced in North America, so when auto manufacturers—even auto parts manufacturers—are considering how much North American content they can make, they're pretty constrained. If they're looking at 75% having to be North American, they're obligated automatically for some products that aren't produced in North America to use up a good portion of that 25%. Out view is that they will have little choice but to buy aluminum from North American sources for the most part.
There's a large amount of pressure to do that, plus again, if we find that Mexico is importing aluminum slabs from China or other places and putting it into further processing and putting it into cars, that's all just building a case for us to say aluminum needs to be treated in the same way as steel.
Martin, do you want to add something?