WORLD TRADE
ORGANIZATIONG/SCM/Q2/CAN/17
14 February 2003
(03-0963)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Responses to Questions Posed by the UNITED STATES1
Regarding the Updating Notification of CANADA2
The following communication, dated 13 February 2003, has been received from the
Permanent Mission of Canada.
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A. ECONOMIC AND REGIONAL DEVELOPMENT AGREEMENTS /GENERAL DEVELOPMENT
AGREEMENTS :  ERDA/GDA
Economic and Regional Development Agreements/General Development Agreements
(ERDA/GDA) were federal-provincial regional/economic development agreements that ran in the
mid-80's to mid-90's.  The ERDAs were umbrella cost-shared federal-provincial arrangements aimed
at promoting economic development and long-term sustainable employment opportunities.  Each
arrangement was consistent with national economic policies and reflected the unique needs and
opportunities of each of Canada’s provinces.  Under the ERDAs, there were a number of sub-
agreements to promote a wide range of activities.  Recipients varied according to each agreement but
were typically small and medium-sized enterprises although community-based organizations were
also eligible.
B. NORTHERN ONTARIO DEVELOPMENT FUND (NODA)
Note:  The Northern Ontario Development Fund was re-engineered in 1995 and is now
known as the Northern Ontario Economic Development Fund (NOEDF)
Eligible applicants and organizations are those located in Northern Ontario.  Normally, only
applicants located in, and providing benefits to the FedNor area may be assisted under the FedNor
Terms and Conditions.  Applicants who can demonstrate a clear and significant benefit to Northern
Ontario's economy, but are located outside FedNor boundaries, may be considered for assistance on
an exceptional basis.
Eligible recipients include non-profit organizations, municipalities, First Nations and
community economic development corporations, located within the designated FedNor boundaries.
                                                     
1 G/SCM/Q2/CAN/16
2 G/SCM/N/60/CANG/SCM/Q2/CAN/17
Page 2
For more information see:
http://www.cbsc.org/english/search/display.cfm?code=2098&coll=FE_FEDSBIS_E
C. STRATEGIC TECHNOLOGIES PROGRAMME (STP)
In the February 1995 Canadian Federal Budget  it was announced that the STP would not be
renewed, although financial commitments would continue at that time under the limits of established
budgets. Assistance under this programme was not based on export performance.  Rather assistance
was based on an assessment of the commercial viability of a specific project. .
D. FISHERIES ALTERNATIVE PROGRAM ME (FAP)
The programme’s objective was to stimulate employment and create economic alternatives in
fishery-dependent communities.  In the February 1995 Canadian Federal Budget it was announcedthat the FAP would not be renewed, although fi nancial commitments would continue under the limits
of established budgets.
FAP provided grants and contributions toward eligible costs, loan insurance and interest buy-
downs, with the objective of providing financial assistance to projects or activities leading to the long-term diversification of affected fishery-dependent communities and/or to employment for workers
displaced by the depletion of fish stocks.  The assistance covered activities including the
establishment of new business, expansion or modernization of existing ones, development of new
products or services, and the development of business infrastructure to achieve economic
diversification or economic expansion in affected  fishery-dependent areas of Atlantic Canada.
E. C
ANADA -QUEBEC SUBSIDIARY AGREEMENT ON THE ECONOMIC DEVELOPMENT OF QUEBEC :
PROGRAMME FOR THE ECONOMIC DEVELOPMENT OF SALMON
The programme under this subsidiary agreement provided for financial aid to tourist
enterprises in Quebec.  The aid was granted to proj ects relating to technological studies, innovation
and development, fixed assets or marketing to sma ll firms engaged in recreational fishing to establish
tourism enterprises.  The aid thus granted represented a percentage of allowable costs.
The last disbursements for this programme were made in 1999-2000 for a total of $165.8 MThis programme does not affect the commercial fishing industry
F. C
OMMUNITY ECONOMIC ADJUSTMENT INITIATIVE PROGRAMME
The programme ran four years: 1997/98 to 20 00/01.  Over that period, $30.7M was invested
in community economic diversification projects that facilitated a transition away from primary
reliance on the salmon fishery.  Projects, ranging from cultural and tourism related initiatives to
fisheries and aquaculture diversification, were geographically disbursed across the Pacific coast, andinvolved both Aboriginal and non-Aboriginal recipien ts.  Project funding decisions were made by a
Project Steering Committee composed of Mayors from affected coastal communities, selected
Community Futures Development Corporation (CFDC)  representatives, and officials from the four
departments involved in the Pacific Fisheries Ad justment and Restructur ing Programme (PFAR) –
Western Diversification Canada (WD), Depart ment of Fisheries and Oceans Canada (DFO),
Department of Indian and Northern Affairs Canada (INAC) and Human Resources Development
Canada (HRDC).G/SCM/Q2/CAN/17
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G. RECREATIONAL SALMON FISHERY LOAN PROGRAMME
On 22 December 1998, WD and DFO announced funding of $7M for a federal Recreational
Salmon Fishing Loan Programme (completed May 1999) to help fishing lodge and charter boat
operators overcome working capital shortages arising from a difficult year in 1998.  The Programme
made 144 loans through the CFDC partnership Total WD expenditure in 98/99:  $7M.
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