G/SCM/Q2/CAN/64
27 April 2015
(15-2260)  Page: 1/2
Committee on Subsidies and Countervailing Measures  Original: English
 
SUBSIDIES 
REPLIES FROM CANADA TO FOLLOW-UP QUESTIONS1 POSED BY THE UNITED STATES  
REGARDING THE NEW AND FULL NOTIFICATION OF CANADA2 
The following communication, dated 27 April 2015, is being circulated at the request of the 
Delegation of Canada. 
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 Provincial programs not notified  
Q. The United States appreciates Canada 's response to our questions and that 
Canada's subsidy notifications are increasi ngly including sub-federal programs. The 
United States understands that the Cana dian federal government "is engaged in 
continuing consultations" with the relevant sub-federal entities but also notes that the 
notification obligation in the Subsidies Agre ement applies to all levels of government. 
When will Canada be able to notify the pr ograms that the Secretariat identified in 
Canada's Trade Policy Review or explain wh y the identified programs should not be 
notified?  Reply 
 As mentioned in the past and in documents G/SCM/Q2/CAN/52 and G/SCM/Q2/CAN/62, Canada supports the subsidy notification process as being an important transparency exercise and agrees 
that sub-federal subsidy programs that are determined to meet Canada's obligation under 
Article 25 of the ASCM should be notified.   
As such, the federal government is engaged in co ntinuing consultations with the provincial and 
territorial governments regarding subsidy notification requirements. During the consultation for the 2013 notification, five provinces and three te rritories informed the federal government of 
programs that meet the criteria for the purposes of notification. Canada has demonstrated 
continued improvement compared to the 2009 notification, where two provinces provided 
information, and the 2011 notification, where five provinces and one territory provided 
information.  
 
Canada's 2013 subsidy notification represents our best efforts to notify all specific subsidy programs, at both the federal and sub-federal level, as required under Article 25 of the ASCM.  
 
Tax Credit for the regions of Gaspésie and Certain Maritime Regions of Québec 
 Q. Canada's response claims that "entities in the maritime industries do not receive 
tax benefits under this program". However, Cana da's notification itself states that "The 
tax credit is available to companies operatin g in eligible industries, including seafood, 
marine biotechnology, wind power, marine  aquaculture, and incidental commercial 
operations". Could Canada please explain th e apparent discrepancies in its answers? 
Additionally, could Canada please address th e United States' original question, whether 
the program provides different levels of tax benefits to companies in different 
                                               
1 G/SCM/Q2/CAN/63. 
2 G/SCM/N/253/CAN. G/SCM/Q2/CAN/64 
 
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  industries? If so, please provide details on th e relevant levels of di ffering benefits that 
apply.  Reply 
 The entities of the maritime sector are admissible to the program in the same way as many other businesses operating in other sectors of the economy. The maritime sector is not part of a special 
category within the category of admissible businesses. 
 Investissement Québec  
Q. Canada's answer acknowledges that Investissement Québec "manages tax 
assistance measures for companies" in certai n industries. The fact that Investissement 
Québec may be an agency rather than a program does not explain why programs 
providing tax assistance to a limited set of eligible companie s are not notifiable 
subsidies. Canada appears to be stating that  these measures are not specific subsidies. 
Is it Canada's position that these tax assist ance measures are generally available? Could 
Canada please provide details on the nature and operation of these programs, as well as 
the reasons Canada has not considered these particular tax assistance measures to be 
subject to the requirement for notification?  
Reply 
 
Investissement Québec is a development agency which manages various fiscal aid programs 
intended for businesses. These programs are subject to the same analysis as existing programs 
and the relevant programs have been notified. The mere existence of this entity is not in itself a program and need not be notified. 
 
Q. Regarding Government of Quebec support for the aerospace industry, we appreciate Canada's explanation that the $118 million represents a maximum 
"repayable contribution" that Investisseme nt Québec has committed to Bombardier for 
research and development of the C-Series, rath er than financing for the construction of 
a plant. However, as noted, according to Quebec public documents, the first disbursement of this repayable contribution  was made during the notification period, 
and Canada's answer does not explain why it s notifications make no reference to these 
activities of the Quebec Government. Pl ease explain the reasons Canada has not 
considered these activities of the Quebec Government to be subject to the requirement 
for notification. 
 Reply 
 
As previously mentioned, this repayable contribution was not granted during the period covered by 
the notifications.  
Government of Quebec Program for Lab Research Inc. 
 Q. Canada's response indicates its be lief that the programs from which the 
Government of Quebec has provided this f unding are not specific. However, Canada's 
response does not indicate which programs these are, or why they should not be considered specific. Could Canada please prov ide details on the nature and operation of 
these programs, as well as the reasons Ca nada has not considered these specific 
measures to be subject to th e requirement for notification? 
 Reply 
 As previously mentioned, the investment only seeks to support research, not the production of goods. In addition, the investment covers many ar eas of activity. In this way, the program need 
not be notified. 
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