. /.   WORLD TRADE  
ORGANIZATION  G/SCM/Q2/CAN/39 
31 March 2010 
 (10-1742) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the EUROPEAN UNION1 
Regarding the New and Full Notification of CANADA2 
 
  The following communication, dated 29 March 2010, is being circulated at the request of the Delegation of Canada.    
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Question 1 
 
I. Industrial Programmes 
 
5. Structured Financing Facility   According to the notification, the SFF has three elements of financing, one of which consists of financing assistance up to 15 per cent of the purchase price of a new Canadian built 
vessel.  This support is in the form of a no n-repayable contribution.  This scheme seems to 
indirectly support Canadian shipyards which as  a result of the programme can offer lower 
prices compared to non-Canadian shipyards.     Could Canada elaborate on the functioning of this programme and how many buyers of 
vessels have actually benefited from this specific  form of financing assistance in the reporting 
period?    
Reply
 
  The SFF programme has no impact on the shipbui lding cost and therefore no impact on the 
price the shipyard charges the bu yer for the ship.  The impact of the SFF programme is on the long 
term financing cost of procuring a Canadian-built ship .  The shipyard is not a party to the contribution 
agreement for SFF support.     Programme take up is provided on the IC web site and can be found at the following address:  
http://www.ic.gc.ca/eic/site/sim-cnmi.nsf/eng/uv00033.html
 
                                                      
1 G/SCM/Q2/CAN/36.   
2 G/SCM/N/186/CAN.   G/SCM/Q2/CAN/39 
Page 2  
 
  Question 2 
 
20. Hydrogen Early Adopters Programme 
 
 According to the description of the programme investments are made under the 
legislative authority of the Department of Industry Act.   
  Could Canada indicate whether foreign comp anies are also eligible for receiving the 
benefits under this programme?  What are the exact eligibility requirements of this 
programme?   
 
Reply
 
  It is important to note that the terms and conditions of the Hydrogen Early Adopters 
programme expired on 31 March 2008 and that no new applications can be made under this 
programme.  Foreign companies were eligible to apply under the H2EA programme, but given 
programme conditions are not able to be the lead r ecipient.  However, a Canadian subsidiary of a 
foreign company could be the lead.     Eligible Recipients will participate in a group of legal entities consisting of two or more for-
profit or not-for-profit incorporated entities, pa rtnerships, cooperatives, trusts, associations or 
individuals.  The Eligible Recipients must select on e of theirs to be the point of contact with the 
Government of Canada and to be the entity mana ging the contribution agreement, including receiving 
and distributing to other Eligible Recipients of the group the contribution made pursuant to the h2EA programme.  This Lead Eligible Recipient must be incorporated and registered pursuant to the laws 
of Canada.   
 
 Each Eligible Recipient sha ll execute the contribution agreement with the Government of 
Canada and be subject to all its terms and conditions.  Each Eligible Recipient under the contribution 
shall be jointly and severally liable with the other Eligible Recipients.     Crown Corporations are Eligible Recipients, but  cannot be lead recipients and Treasury Board 
Secretariat must be consulted to determine whet her specific Treasury Board approval is required.  
However, Federal Departments and Agencies are not Eligible Recipients.     The exact eligibility requirements from the pr ogramme's terms and conditions can be found 
on the following link, http://ito.ic.gc .ca/eic/site/ito-oti.nsf/eng/00671.html
.   
 
  
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