G/SCM/Q2/CAN/72  
 
27 January 2022  
(22-0696) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
QUESTIONS POSED BY THE UNITED STATES  REGARDING  
THE NEW AND FULL NOTIFICATION OF CANADA1 
The following communication, dated and received on  24 January 2022 , is being circulated at the 
request of the delegation of the United States . 
 
_______________  
 
 
The United States appreciates Canada's 2021  subsidy notification  and poses the following questions 
regarding programs contained in the notification as well as p rograms we understand are maintained 
by Canada, but may not be included in the notification.  
 
Question 1  
 
a. For the program entitled "Fisheries and Aquaculture Clean Technology Adoption Program 
(FACTAP), " what equipment, if purchased, would be eligible for assistance? Would any of 
this equipment increase the capacity of commercial fisheries?  
 
b. Can Canada confirm that the program terminated as expected on 31 March 2021?  
 
Question 2 
 
a. For the program entitled "Quebec Fisheries Fund (QFF), " how does a commercial fisher 
"demonstrate maximum economic benefits accruing to the Quebec region " to be eligible for 
the subsidy?  
 
b. Is any portion of the subsidy contingent on or supportive of increas ing fishing capacity of 
commercial fishers?  
 
Question 3 
 
a. For the program entitled "Regional Economic Growth through Innovation Steel and 
Aluminium Initiative " we understand that the Government of Canada provided  at least  
CAD 4.2 million to steel projects i n Manitoba. In Canada's notification, it is indicated that a 
total of CAD 6.9 million was provided to all provinces 2019 -2020. Does this mean that  steel 
and aluminium projects  in Canada 's other provinces only received CAD 2.7 million in total?  
 
b. We understand that this program was launched to provide CAD  100 million in non -repayable 
contributions to SMEs within Canadian steel and aluminium supply chains for innovative 
projects that will enhance productivity . What proportion were provided to steel pro ducers 
versus aluminium producers? How has the increase in productivity as a result of this 
investment increased the production capacity of recipients of this funding?  
 
 
1 G/SCM/N/372/CAN  G/SCM/Q2/CAN/72  
 
- 2 - 
 
  Question 4 
 
a. We understand that the Government of Canada maintains a "Strategic Innovati on Fund " 
("SIF") which has provided financing for 100 projects. We do not see a program with this 
name contained in Canada's notification, has this program been notified under a different 
name or is the program otherwise contained in Canada's notification?  We understand that 
this program has funded five projects involving Canadian steel companies (two projects with 
Algoma Steel, one with Algoma Tubes and Prudential Steel, one with Gerdau Ameristeel, 
and one with Nova Steel). For each of these projects, plea se provide the amount of funding 
provided and the terms or conditions of any equity stake obtained or repayment required.  
 
b. We also understand that on 21 August 2019 the Government of Canada announced that it 
would invest CAD 18 million in Heico Canada to d iversify its product mix and supply the 
market with more high -quality, value -added wire and wire rod product. What are the terms 
of this investment and will additional capacity be supported by this investment?  
 
c. On 9 March 2019, the Government of Canada ann ounced a grant of CAD 11.5 million to 
ArcelorMittal Canada Inc. to make improvements and upgrades to the company's Hamilton, 
Ontario facilities. According to the Government of Canada's announcement, "with this 
investment, ArcelorMittal will be the only Can adian supplier of this steel product to service 
the growing demand in the Canada and Northern US regions. " What are the terms of this 
investment and will additional capacity be supported by this investment?  
 
d. On 10 January 2019, the Government of Canada announced that it would commit 
CAD 30 million from the SIF to support investments in Algoma's steel making facilities in 
Ontario. These investments include projects to adopt new technologies, improve 
productivity, and  sustain competitiveness in the global market. We understand the 
improvements will help Algoma modernize its core production assets, including the steel 
rolling and steel plate mills, which will position the company to offer a wider range of steel 
grades a nd increase production capabilities. What are the terms of this investment and will 
additional capacity be supported by this investment?  
 
e.  On 6 March 2019, the Government of Canada announced a CAD 40 million investment that 
will upgrade steel producer Evra z's facilities in Regina, Saskatchewan and Red Deer, Alberta. 
The funding will support numerous upgrades to Evraz's facilities in western Canada and 
increase its competitiveness in serving the oil country tubular good market. The 
CAD 40 million in funding represents 35% of the project's cost. What are the terms of this 
investment and will additional capacity be supported by this investment?  
 
f. On 19 July 2019, the Government of Canada announced a CAD 14 million investment in 
Nova Tuba for a project in Montrea l, Quebec. What are the terms of this investment and how 
much additional capacity  will be  supported by this investment?  
 
g. On 26 July 2019, the Government of Canada announced that it would provide a 
CAD 16 million grant to Algoma Tubes' seamless mill in Saul t Ste. Marie, Ontario, and its 
Prudential welded mill in Calgary, Alberta. What are the terms of this investment and will 
additional capacity be supported by this investment ?  
 
h. On 14 August 2019, the Government of Canada announced a CAD 49.9 million grant to 
Stelco to upgrade its facilities in Hamilton and Lake Erie, Ontario What are the terms of this 
investment and will additional capacity be supported by this investment?  
 
 
__________