WORLD TRADE  
ORGANIZATION  G/SCM/Q2/CAN/42 
27 May 2010 
 (10-2936) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by JAPAN1 Regarding the  
New and Full Notification of CANADA2 
 
  The following communication, dated 26 May 2010, is being circulated at the request of the Delegation of Canada.    
_______________ 
 
 
Canada-Ontario Infrastructure Programme
 
 Question 1 
 
 Could Canada explain in detail what "elig ible costs" for which assistance under the 
programme is provided mean?  Japan is much interested in whether there is any limitation on being qualified as eligible costs, thus Japan wo uld like to know if a local content requirements 
must be satisfied to receive the subsidy. 
 
Reply
 
  First, please note that all funds for this program have been committed and FedDev Ontario is monitoring the progress of the approved projects.    
 "Eligible Costs" for this initiative were project  costs eligible for f unding in accordance with 
the terms and conditions of the funding agreemen t between the federal and provincial governments 
and the funding recipient.  Specifically, this mean s all direct costs properly and reasonably incurred 
and paid solely and specifically by an Applicant or  Third Party, which are invoiced against a contract 
for goods and/ or services necessary for the due implementation of a Project, including:   
 
• Capital costs (as defined and determined by the Generally Accepted Accounting Principles 
which are in effect in Canada), of acquiring, constructing or renovating a fixed capital asset;   
• The salaries, fees, remuneration paid to prof essionals, technical personnel, consultants and 
contractors specifically engaged to undertake the design, engineering, manufacturing or construction of an Eligible Pr oject and related facilities and structures, where applicable;   
• Any other costs which are incurred and paid in  the implementation of a Project that are 
approved in advance by the Management Committee;   
• Communications Costs that are approved in advance by the Management Committee.   
 
                                                     
 
1 G/SCM/Q2/CAN/41.   
2 G/SCM/N/186/CAN. G/SCM/Q2/CAN/42 
Page 2  
 
   Eligible Applicants included;  Any Local Government proposing an Infrastructure Project;  
and any Local Government or body corporate (whether  public or private) whose Project is nominated 
by Canada or Ontario.  Nomination under this pr ovision is for Projects that are strategic, cross-
regional or multiparty in nature, with significant regional, environmental or economic benefits.   
 Other Programmes relating to Ontario
 
 
Question 2 
 
 Are foreign entities eligible for participat ion under the programmes?  Japan would like 
to know what eligibility requirements exactly are, including if a local content requirements must 
be satisfied to receive the subsidy.   
 
Reply  
 Northern Ontario Development Program 
 
 Eligible recipients are:  Financial instituti ons, SMEs with less than 500 employees, First 
Nations and legal entities including not-for-pro fit organizations and Community Futures 
Organizations (CFO).    
 Applicants who can demonstrate a clear and significant benefit to the Northern Ontario 
economy, but who are located outside of Northern Ontario, may be considered for assistance on an 
exceptional basis.     There are no local content requirements.   
 
 More information on the Northern Ontari o Development Program is available at:  
http://www.ic.gc.ca/eic/site/fe dnor-fednor.nsf/e ng/h_fn02348.html
 
 
Ontario Community Futures (CF) Program 
  Eligible Recipients are CFOs that include the following:   
 
• Incorporated non-profit organizations working to establish a new CFO 
• Local CFOs which are incorporated, non-profit organizations established for a specified local 
service area, outside a Metropolitan Area (MA) 
• Regional, provincial, and national CF associations 
• Investment Fund (IF) Pools which are incorpor ated, non-profit organizations approved by the 
Minister responsible for the CF Program, that pool cash reserves from the investment resources in CF service areas.   
 
 There are no local content requirements.     More information on the Ontario Community Futures Program is available at:  http://cfdc-
ontario.ic.gc.ca/epic/internet/infe dnor-fednor.nsf/en/h_fn01468e.html.   
 
Eastern Ontario Development Program 
 
 Eligible Recipients are:  All contribu tions will be provided to Community Futures 
Development Corporations (CFDCs) of Eastern Onta rio and the Eastern Ontario CFDC Network Inc. 
and jointly referred to as primary recipients.  Sec ondary recipients are legal entities including:    G/SCM/Q2/CAN/42 
 Page 3 
 
 
  • Non-profit organizations including municipaliti es and municipal organizations, corporations, 
community development organizations, and associations 
• Legal commercial entities including individuals, co rporations, partnerships, cooperatives, or 
trusts 
• Aboriginal organizations 
• Groups or alliances of those described above where a lead recipient has been identified 
  Eligible Recipients for EODP funding contributions are located in the region extending east 
from Durham Region and Algonquin Park and bounded by the Quebec border, excluding the cities of 
Kingston and Ottawa.  Applicants who are located outside of this region may be considered for 
funding on an exception basis, where a clear and significant benefit to Eastern Ontario can be 
demonstrated.    
 There are no local content requirements.   
  More information on the Eastern Ontario Development Program is available at:  
http://www.feddevontario.gc.ca/eic/ site/723.nsf/eng/h_00042.html
.   
 
Ontario Potable Water Program 
 
 Eligible Recipients are:  Ontario municipa lities that have entered into a Canada-Ontario 
Infrastructure Program (COIP) contribution agreement for a potable water project (the Project) and that:    
• Have incurred increased costs within the Project as a result of having to comply with Ontario 
drinking water regulations;   
• Have submitted the COIP project final clai m and final report and all required documents 
related to the Project confirming completion of  the projects and identifying the additional 
costs incurred by the Recipient to the Ontari o Ministry of Agriculture, Food, and Rural 
Affairs (OMAFRA);  and 
• Have had these additional costs re-nominated by  OMAFRA to Industry (via the Federal Co-
Chair of the COIP Management Committee) for consideration of increased funding for the 
Project.   
  There are no local content requirements.     More information on the OPWP is available at: http://www.ic.gc.ca/eic/site/opwp-
pepo.nsf/eng/home .   
 
  
__________