G/SCM/Q2/CAN/63  
21 November 2014  
(14-6808)  Page: 1/2  
Committee on Subsidies and Countervailing Measures  Original: English/French  
 
  SUBSIDIES 
FOLLOW-UP QUESTIONS1 POSED BY THE UNITED STATES REGARDING THE  
NEW AND FULL NOTIFICATION OF CANADA2 
The following communication, dated 18 November 2014, is being circulated at the request of the 
delegation of the United States.  
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  Provincial programs not notified 
 
The United States appreciates Canada's response to our questions and that Canada's subsidy notifications are increasingly including sub-federal programs. The United States understands that 
the Canadian federal government "is engaged in continuing consultations" with the relevant 
sub-federal entities but also notes that the notification obligation in the Subsidies Agreement a p p l i e s  t o  a l l  l e v e l s  o f  g o v e r n m e n t .  W h e n  w i l l  C a n a d a  b e  a b l e  t o  n o t i f y  t h e  p r o g r a m s  t h a t  t h e  
Secretariat identified in Canada's Trade Policy Review or explain why the identified programs 
should not be notified?  Tax Credit for the regions of Gaspésie and Certain Maritime Regions of Québec 
 
Canada's response claims that "entities in the maritime industries do not receive tax benefits under this program". However, Canada's notification itself states that "The tax credit is available to 
companies operating in eligible industries, including seafood, marine biotechnology, wind power, 
marine aquaculture, and incidental commercial operations". Could Canada please explain the apparent discrepancies in its answers? 
 
Additionally, could Canada please address the United States' original question, whether the 
program provides different levels of tax benefits to companies in different industries? If so, please provide details on the relevant levels  of differing benefits that apply. 
 
Investissement Québec  
Canada's answer acknowledges that Investissement  Québec "manages tax assistance measures for 
companies" in certain 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 
companies are not notifiable subsidies. Canada ap pears to be stating that these measures are not 
specific subsidies. Is it Canada's position that these tax assistance 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? 
 Regarding Government of Quebec support for the aerospace industry, we appreciate 
Canada's explanation that the $118 million represents a maximum "repayable 
contribution" that Investissement Québec has committed to Bombardier for research and development of the C-Series, rather than financing for the construction of a plant. However, as 
noted, according to Quebec public documents, the first disbursement of this repayable contribution 
                                               
1 G/SCM/Q2/CAN/61; G/SCM/Q2/CAN/62. 
2 G/SCM/N/253/CAN. G/SCM/Q2/CAN/63 
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  was made during the notification period, and Canada's answer does not explain why its 
notifications make no reference to these activities of the Quebec Government. Please explain the reasons Canada has not considered these activities of the Quebec Government to be subject to the 
requirement for notification. 
 
Government of Quebec Program for Lab Research Inc  
 
Canada's response indicates its belief that the programs from which the Government of Quebec 
has provided this funding 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 provide details on the nature and operation of these programs, as well as the reasons Canada has not 
considered these specific measures to be subject to the requirement for notification? 
 
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