Thank you.
It's a significant problem. Over 90% of what we produce in this country goes to the United States. That is the market. The reason manufacturers locate here is to access that market.
What we're seeing is a very concerning trend of decoupling, particularly on the ZEV file. The reason this industry has succeeded in Canada is that, since the Auto Pact, there's been recognition by government that we must align our regulations for things like vehicle safety and emission standards and also our trade policies with the United States to be part of that integrated market. That was reinforced in the NAFTA agreement and most recently reinforced in the CUSMA, the USMCA. We have always aligned our regulations across the board but specifically on emissions.
We just recently saw the Biden administration come forward with very stringent vehicle emissions targets. Canada, instead of taking the approach of aligning with the U.S., is now pursuing it's own zero-emission vehicle sales mandate, which is a totally new regulation. It's frankly redundant and unnecessary in the context of what the Biden administration is doing. It's very concerning, and it's very problematic for industry.