WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/CAN/50 
30 March 2012 
 (12-1684) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions from the EUROPEAN UNION1 Regarding the 
New and Full Notification of CANADA2 
   The following communication, dated 23 March 2012, is being circulated at the request of the Delegation of Canada.    
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Under the section A.  INDUSTRIAL PROGRAMS, 10.  Canadian Youth Business Foundation 
 Question 1 
 
 Please describe the eligibility criteria.   
 
Reply 
 
 The eligibility requirements include: 
 
 Between 18-34 years old 
 Canadian citizen or a permanent resident of Canada 
 Not a full-time student 
 Produce a complete and viable business plan 
 Starting a new business OR have been in busin ess, fully operating, for less than 12 months 
 Lives or operates the business in the community which offers the CYBF program through a 
community partner 
 Has some training/experience related to their business idea 
 Agrees to work with a mentor for a period of two years 
 Has a business idea that creates full-time sustainable employment for the applicant 
 Discharged from bankruptcy for at least 5 years (if applicable) 
 Loan proceeds may NOT be used for refinancing existing debt 
 Loan proceeds may NOT be used to fund busin esses that are sexually  exploitive or that 
feature sexually explicit entertainment, products or services; businesses that are engaged in or 
associated with illegal activities; businesses tradi ng in countries that are proscribed by the 
Canadian federal government;  and any ot her commercial activities inappropriate for 
government funding. 
 Loan proceeds may not be used to fund bus inesses in the research and development stage 
                                                      
1 G/SCM/Q2/CAN/47.   
2 G/SCM/N/220/CAN. G/SCM/Q2/CAN/50 
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  For partnerships and incorporated businesses 
 
 In addition to meeting the basic criteria, appli cants who meet the age criteria must have at 
least 51 per cent of the voting shares and be i nvolved in the day-to-day management of the 
business. 
 All partners that meet the CYBF age criteria ar e subject to the CYBF application process.  If 
any partner is a minority shareholder and is over the CYBF age limit, they are not subject to 
the application process. 
 
For incorporated businesses with more than two shareholders 
 
 In addition to meeting the basic criteria, if there are more than two shareholders and no one 
majority shareholder, shareholders who meet  the age criteria must collectively hold the 
majority of the voting shares, be involved in the day-to-day management of the business, and 
take direct responsibility for operational liability. 
 
Succession Financing 
 
 In addition to meeting the basic criteria, you have until the end of the fifth year of operation to 
attain 51 per cent ownership in the company. 
 
Under the section C.  Fisheries 
 
Question 2 
 
 With respect to the fisheries sector, and in addition to the information provided in the 
subsidy notification, the EU would like to know whether companies and/or individuals have benefited from non-fisheries specific subsidy programmes, including those through which loans 
and loan guarantees are provided, be it at  Federal and/or sub-federal level.   
 Reply 
 
 Canada's 2011 subsidy notificati on 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.  
 Under the section N. ONTARIO (Provincial Pr ograms), 4.  Emerging Technology Program 
 Question 3   Please describe the targets to be met so that a forgivable performance loan is forgiven.  
Are they related to export performance?  
 
Reply 
  The Emerging Technology Program has never provided forgivable performance loans under 
this mandate and the reference was included in erro r.  The response to this section of the document 
should have been: 
 
"For public sector:  Generally, up to 50 per cent of the costs for capital projects may be provided in the form of conditional contribut ions and repayable loans.  The maximum 
Northern Ontario Heritage Fund Corporation (NOHFC) contribution for any project will  G/SCM/Q2/CAN/50 
 Page 3 
 
 
  normally not exceed $1 million.  The NOHFC may consider higher levels of assistance on a 
case-by-case basis. 
 
For private sector:  NOHFC investments may gene rally be up to one third of the total project 
cost.  The NOHFC may generally provide up to  $50,000 in non-repayable contributions to 
eligible applicants on a cost-shared basis for research and pre-competitive development 
technical projects (the stage of product development immediately preceding commercial release), upon assessment of a project and firm.  The Emerging Technology Program may also provide repayable loans of up to $1 million or one third of eligible projects costs, whichever is less, for capital projects.  The amount of the NOHFC investment will be based 
on the extent of the partner investment, the overall business case and the project benefits.  
Funding is limited.  Not all projects will be funded." 
 
Under the section N.  ONTARIO (Provincial Programs), 11.  Ontario Craft Brewers 
Opportunity Fund (OCBOF) 
 
Question 4 
 
 Please provide data of annual sales volume a nd value of the recipient firms with regard 
to the subsidized product, as well as relevant provisions that would prevent this ad valorem subsidisation from exceeding 5 per cent.   
 
Reply 
  The requested data is confidential business information of the recipient firms and its 
unauthorised communication to third parties is prohi bited.  We also note that the Ontario Craft 
Brewers Opportunity Fund has now ended. 
 
Under the section N.  ONTARIO (Provincial Programs), 12.  Ontario Ethanol Growth Fund 
(OEGF) 
 
Question 5 
 
 Please provide details about the eligibility criteria / conditions, eligible costs.  
 
Reply 
 
The Ontario Ethanol Growth Fund (OEGF) is a 12-year program designed to encourage the 
construction and operation of etha nol fuel plants in Ontario.  
 
The OEGF has the  following four components:  
 Capital Grants  
 Operating Grants  
 Independent Gasoline Blenders' Transitional Fund (IGBTF)  
 Alternative Renewable Fuels (ARF) Plus Fund  
 
The recipients of the OEGF are ethanol producers and independent  gasoline blenders who 
have entered into agreements with Ontario Mi nistry of Agriculture, Food and Rural Affairs 
(OMAFRA).  Specific eligibility criteria for each grant are as follows: G/SCM/Q2/CAN/50 
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   Capital Grant:  
 Demonstrated financial need. 
 
 Owner(s) equity commitment such that  equity investments plus government 
contributions (secured or expected) amount to no less than 40% of the project construction cost.  
 
 Demonstration that all aspects of the project  will be completed to enable production 
of ethanol at a minimum of 50% capacity by specified date as per their Capital 
Assistance agreements with the ministry or any amendments.  These aspects will be 
verified by a third party expert. 
 
 Proof of available financing –firm financi ng must be in place prior to a formal 
agreement relating to the capital assistance provided. 
 
 Proponents are owners or signing officials of the proposed Ontario ethanol plant, 
supported by a competent management team. 
 
 Support of local government(s) and communities. 
 
 Capital grant for a project is paid only af ter it is independently verified that the 
facility is substantially complete and cap able of producing a specified volume of 
ethanol at a given time. 
 
 Operating Grant: 
 Plant's ability to maximize the effectiveness of operating grants, as demonstrated 
through the plant's contribution to the renewable fuels standard of 2007, regional economic impacts and strength of business plan.  
 
 The grant is based on a formula reflecting th e actual market prices of corn, crude oil 
and ethanol.  
 
 Independent Gasoline Blenders' Transitional Fund: 
 Independent gasoline blenders who were bl ending ethanol and selling ethanol blended 
gasoline in Ontario at the time of the policy announcement (2005) and can demonstrate being at an economic disadvant age because of the implementation of the 
renewable fuel standards.   
 
 Program payments are made based on the demonstrated loss of competitiveness as 
measured by their market loss.   
 
 Alternative Renewable Fuels Plus Fund  
 Administered by the Agricultural Research In stitute of Ontario (ARIO), an agency of 
the Ontario government, funding is open to universities, research institutions, 
industry, governments, organizations or pa rtnership networks.  Applicants outside 
Ontario may also apply if they can de monstrate how the proposed research will 
provide significant benefits or a unique co mpetitive advantage for Ontario's agri-food 
industry, energy sector and/or rural communities.  G/SCM/Q2/CAN/50 
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  Under the section P.  QUÉBEC (Provincial Program s), 7.  Crédit d'impôt remboursable pour la 
production d'éthanol au Québec 
 
Question 6 
 
 Please provide data of monthly sales volume and sales value of the recipient firms, as 
well as relevant provisions that would prevent th is ad valorem subsidisation from exceeding 5 
per cent, e.g. exact rates of tax credit relating to litre price and/or total volume.  
 
Reply 
  The requested data is confidential business information of the recipient firms and its 
unauthorised communication to third parties is prohibited under Québec law.    
 
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