G/SCM/Q2/CAN/78  
 
18 October 2022  
(22-7832) Page: 1/4 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO THE QUESTIONS POSED BY AUSTRALIA1 
REGARDING THE NEW AND FULL NOTIFICATION OF CANADA2 
The following communication, dated and received on 18 October 2022, is being circulated at the 
request of the delegation of Canada.  
 
 
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3.2 Atlantic Integrated Commercial Fisheries Initiative  
3.7 Northern Integrated Commercial Fisheries Initiative  
3.8 Pacific Integrated Commercial fisheries initiative  
These three programs include facilitation of the voluntary retirement of commercial 
licences to eligible Indigenous groups in a manner that does not add to existing fishing 
effort.  
Question 1  
Could Canada please clarify whether the reference to fishing effort relates to the relevant 
fisheries? Are there performance requirements to receive grant assistance?  
Reply : 
Canada has a specific program to assist Indigenous groups in establishing a communal commercial 
fisheries enterprise in the fish -harvesting industry. Obtaining a commercial fishing license is only 
one step in a graduated approach to establishing a communal commercial fisheries enterprise.  
The voluntary retirement of a commercial license may result in the purchase of this license by an 
eligible Indigenous group. As a result, there is no net i ncrease or decrease to the fishing effort 
related to the relevant fisheries.  
In order to receive grant assistance for any of the three Commercial Fisheries Initiatives noted 
above, the Indigenous group must meet a structured performance requirement.  The group must 
have experience in the relevant fisheries and the programs follow a step -wise approach in order to 
be accepted into the Contribution Agreement Program.  
- First, they must have a business plan.  
- Second, they submit a specific business case for which  they seek a grant and this may or 
may not include the purchasing of a license.  
 
1 G/SCM/Q2/CAN/74  
2 G/SCM/N/372/CAN  G/SCM/Q2/CAN/78  
 
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  - Third, the business case is reviewed by a third party in order to ensure that their proposal 
meets the program 's performance requirements in order to receive financial support .  
- Fourth, the proposal goes to a review board, which will provide a recommendation on 
whether the business case qualifies to receive government funding.  
The commercial fishing license is converted into a communal commercial license for the Indigenous 
group as it is for the community as a whole, and not an individually -owned company. The Indigenous 
community does not have the liberty to relinquish their communal commercial license at their 
pleasure. Rather, they must provide justification to the government regarding why the license is no 
longer required. Any funds they may receive for the sale of the license they relinquish must be used 
for another communal commercial fisheries business plan under the Commercial Fisheries Initiative.  
Question 2  
Are the grants intended to incentivise the voluntary retirement of the licence or to assist 
indigenous groups to acquire the commercial licences?  
Reply : 
Grants are not intended to incentivise the voluntary retirement of any licenses. The grants and 
contributions f unding under the three Commercial Fisheries Initiatives noted above may assist 
Indigenous groups in acquiring a commercial license in order to establish or expand their company. 
However, granting of a license is not the sole purpose of these grant programs . 
7.1 Northern Fisherman's Freight Assistance Program  
The program supports "marginally viable" commercial fishing operations for eligible fish 
species.  
Question 3  
Is this assistance automatic or are there conditionalities/performance requirements for 
the r eceipt of the freight assistance?  
Reply : 
The conditions for the receipt of the freight assistance are as follows:  
• Eligibility for assistance is based on the species of fish  caught from designated lakes  in 
remote, northern parts of Manitoba  with economicall y marginal fisheries . Economically 
marginal fisheries are those where the cost of shipping fish to their final destination 
(Freshwater Fish Marketing Corporation – FFMC - located in Winnipeg) is not viable and 
monetary assistance is needed to maintain fish ers' livelihood and the economic benefits to 
local communities.   
8.4 Fisheries Loans and Loan Guarantees  
Eligible activities under this program include purchasing of new or used vessels.  
Question 4  
Noting that applicants must include a business plan, is th is program contingent on 
performance requirements, including for example, increase in fishing capacity and effort 
by eligible recipients?  G/SCM/Q2/CAN/78  
 
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  Reply : 
The program is not contingent on performance requirements or an increase in fishing capacity and 
effort.  The business plan is required to demonstrate the ability to repay the loan.   
10.1 Commercial fishery Assistance Industry support Program  
Question 5  
What is the per unit rate of freight assistance?  
Reply : 
Yes, the freight support is automatic at CA D0.23/lbs. paid on Lake Whitefish, Lake Trout, Northern 
Pike and Walleye delivered to the FFMC plant to offset freight to Winnipeg.  
12.1 Commercial Fisheries Freight Subsidy  
Question 6  
What type of commercial fisheries are eligible?  
Reply : 
The Commercial Fisheries Freight Subsidy applies to businesses in the fishing or fish processing 
sectors, or any businesses that are either licensed by Fisheries and Oceans Canada (DFO) or are 
otherwise legally entitled to operate. This covers any type of l icensed fishery (including finfish and 
shellfish only – not including marine mammals).  DFO provides different types of licenses 
(commercial licenses, exploratory licenses) that allow for commercial sale, all of which apply to 
subsidy eligibility.   
13.23 On tario Tax Credit for Manufacturing and Processing  
Question 7  
What are the eligibility requirements for a tax credit? For example, are there performance 
requirements?  
Reply : 
The Ontario Tax Credit for Manufacturing and Processing (OTCMP) is a mechanism by w hich the 
general corporate income tax rate is reduced from 11.5 % to 10% for certain types of income earned 
by a corporation, i.e., income from manufacturing and processing (including income from the 
generation of electricity and from the production of stea m), farming, fishing, mining and logging.  
The following are the eligibility requirements  for the OTCMP:  
1. The claimant is a corporation;  
2. The corporation had Ontario taxable income during the tax year; and  
3. The corporation had "eligible Canadian profits " from any of the following activities:  
a. manufacturing and processing,  
b. farming,  
c. fishing,  
d. logging,  G/SCM/Q2/CAN/78  
 
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  e. mining,  
f. the generation of electrical energy for sale, or the production of steam for sale.  
There are no performance requirements associated with the OTCMP.  
 
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