G/SCM/Q2/CAN/60  
 
29 April 2014  
(14-2621)  Page: 1/2  
Committee on Subsidies and Countervailing Measures  Original: English  
 
  SUBSIDIES 
REPLIES TO QUESTIONS1 FROM NEW ZEALAND REGARDING THE 
NEW AND FULL NOTIFICATION OF CANADA2 
The following communication, dated 26 April 2014, is being circulated at the request of the 
Delegation of Canada.  
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  We welcome the reporting of Canada's programmes affecting fisheries, which we see as operating 
in the context of the 2012 Rio+20 commitment to  further improve the transparency and reporting 
of existing fisheries subsidies programmes through the WTO. Heads of State/Rio+20 also encouraged States to eliminate subsidies that cont ribute to overcapacity and overfishing, and to 
refrain from introducing new such subsidies or from extending or enhancing existing ones. We also 
view this as an important contribution to the Doha mandate "to clarify and improve WTO disciplines on fisheries subsidies". 
 
Q.1 Atlantic Integrated Commercia l Fisheries Initiative (AICFI)  
 With regard to this programme, can Canada: 
 
 Identify the fisheries affected by the programme, by geographical area (e.g. 
territorial sea, EEZ, high seas), and the species affected by the programme (e.g. 
both target and bycatch species) 
 Reply 
 Several fisheries are affected by AICFI, including but not limited to: Atlantic Lobster, Snow Crab, Shrimp, Sea Scallop, Tuna and Groundfish. The geog raphical area of these affected fisheries is 
limited to the Territorial Sea (0-12 Nautical Miles), Contiguous Zones (12-24 Nautical Miles) and 
the Exclusive Economic Zone (up to 200 Nautical Miles) of Canada. 
  Clarify the current status of the programm e, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life of the 
programme? 
 
Reply 
 
Canada's Economic Action Plan 2014 announced a two-year renewal of AICFI, at $22M over two years. It is as yet unknown whether the program will be renewed at the end of 2016. 
 
Q.2 Pacific Integrated Commercial  Fisheries Initiative (PICFI) 
 
With regard to this programme, can Canada: 
 
                                               
1 G/SCM/Q2/CAN/58. 
2 G/SCM/N/253/CAN. G/SCM/Q2/CAN/60 
 
- 2 - 
 
   Identify the fisheries affected by the programme, by geographical area (e.g. 
territorial sea, EEZ, high seas), and the species affected by the programme (e.g. 
both target and bycatch species) 
 
Reply 
 
Several fisheries are affected by the PICFI, including but not limited to: Crab, Geoduck, Halibut, 
Herring, Salmon, Shrimp and Groundfish. The geogra phical area of these affected fisheries is 
limited to the Territorial Sea (0-12 Nautical Miles), Contiguous Zones (12-24 Nautical Miles) and the Exclusive Economic Zone (up to 200 Nautical Miles) of Canada.  
 Clarify the current status of the programm e, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life of the 
programme? 
 
Reply 
 
Canada's Economic Action Plan 2014 announced a two-year renewal of PICFI, at $22M each 
year. This funding will assist the participating First Nations Commercial Fishing Enterprises in strengthening their fishing capacity and business acumen. It is as yet unknown whether the program will be renewed at the end of 2016. 
 
Q.3 Sub-federal programmes: Quebec: Tax cr edit for Shipbuilders and Tax Reduction 
on Capital for the Acquisition of Ships 
 
To the extent that these programmes affect  the construction of fishing vessels, can 
Canada: 
 
 Identify the fisheries affected by the programme, by geographical area (e.g. 
territorial sea, EEZ, high seas), and the species affected by the programme (e.g. 
both target and bycatch species) 
 
 Clarify the current status of the programm e, how long it is anticipated that the 
programme will be in place, and how the budget will change over the life of the 
programme? 
 Reply 
 This information is not known as the programme is open to all types of ships and makes no distinction by geographical area in which the ship is used or fish species which it catches.  
It should be noted that since 1 April 2011, the Tax Reduction on Capital for the Acquisition of 
Ships provides no benefits, as on that date, the Government of Québec decreased the rate of Capital Tax for Québec businesses to 0%. 
 
Q.4 Non-notified programmes: Employment Insurance Fishing Benefits  
We note that Canada has not notified the above programme, which we understand to be 
specific to the fishing industry. Pursuant to Article 25.8 of the SCM Agreement, we 
would be grateful if Canada could give an explanation of the reasons why it has been 
considered as not subject to the requirement of notification. 
 
Reply 
 
Employment Insurance (EI) provides temporary financial assistance to unemployed Canadians who 
have lost their job through no fault of their own, wh ile they look for work or upgrade their skills. EI 
benefits are available to qualifying self-employed fishers who are out of work. As it falls under the 
umbrella of Canada's broader Employment Insurance social program, Canada does not include this 
program in its subsidy notification.   
 
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