WORLD TRADE  
ORGANIZATION  G/AG/N/CAN/65 
20 October 2006 
 (06-5090) 
Committee on Agriculture Original:   English/ 
 French 
 
 
 
NOTIFICATION 
  
 The following submission, dated 4 October 2006, is being circulated at the request of the Delegation of Canada .  The notification concerns new or m odified domestic suppor t measures exempt 
from reduction ( Table DS:2 ). 
  G/AG/N/CAN/65 
Page 2  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Transitional Industry Support Payment 
 
(2) Domestic legislation reference:  
 
The Farm Income Protection Act, subsection 12(5) (for the federal payment) 
 There is no domestic legislation reference for the provincial program in Nova Scotia 
 
(3) Detailed description of measure with reference to criteria:  
 
Transitional Industry Support Program  (TISP) - The federal government  provided a 
decoupled income support payment to producers of  cattle and other ruminant animals (e.g., 
elk, bison) that have been affected by the prolonged closure of the Canada-US border and a 
general decoupled income support payment to th e agriculture sector as a whole.  The province 
of Nova Scotia also provided a decoupled pa yment to producers of ruminant animals under 
the Nova Scotia Ruminant Income Support Program  that was based on the identical criteria as 
the federal program.   
 
Producers of cattle and other ruminant animals that had reported farm income in 2003 for tax 
purposes received a per head payment on eligible bovine animals (pro-rated for other 
ruminant animals) based on inventory on 23 D ecember 2003.  Eligible animals included all 
bovine animals except mature bulls and cows (i.e. cows that have calved and intact bulls older 
than one year) with similar eligibility criteria for other ruminant animals.  The total cost of the 
federal program was $680 million.  The total co st of the program in Nova Scotia was 
$8.1 million. 
 
The federal government also provi ded a general payment to all pr oducers.  To be eligible for 
the general payment the producer had to have re ported farm income in 2002 for tax purposes.  
The payment was based on a percentage of the pr oducer's five-year average historic eligible 
net sales (1998-2002).  The percen tage was determined by dividi ng the total funding available 
by total average eligible net sales.  Eligible ne t sales were defined as total sales of all eligible 
commodities minus total purchases of all e ligible commodities. The total cost was 
$250 million. 
 
These payments conform with the general crite ria under Annex 2, paragraph 1 and the policy 
specific criteria under decoupled income suppor t (paragraph 6).  The support is provided 
through a publicly funded government program not involving transfers from consumers; and 
does not have the effect of providing price support to producers.  Eligibility for both 
payments were based on clearly defined criteri a in a fixed and defined base period and the 
amount was not based on the type or volume of  production, prices or factors of production 
employed in any year after the base period.   
  G/AG/N/CAN/65 
 Page 3 
 
 
  For the payment to producers of cattle and othe r ruminant animals, eligibility was based on 
whether producers reported farm income for ta x purposes and had inventory in a fixed and 
defined based period (i.e., reported farm inco me in 2003 for tax purposes and having eligible 
animals on 23 December 2003).  The amount of payment was based on a set total  amount and 
was not based on the type or volume of production, prices or factors of production employed 
in any year after the base period.  For the ge neral payment to all producers, eligibility was 
based on whether the producer reported farm income for tax purposes in a fixed and defined 
base period (i.e., 2002).  The amount of the payment was based on a percentage of the 
producer’s five year historic eligible net sales (1998-2002) and was not based on the type or 
volume of production, prices or factors of production employed in any year after the base 
period. 
 
(4) Cost of measure:  
 
Federal - $930 million ($680 million to producer s of ruminant animals, $250 million under 
the general payment to all producers)  
Nova Scotia - $8.1 million to producers of ruminant animals 
 
(5) Date of entry into effect: 
 
March 2004 
 
(6) Period of application:  
 
FY 2004/05 
 
(7) Products to principally benefit (if any individual product(s)): 
 
Ruminant animals under the ruminant related payment. 
 Any product under the general payment.  G/AG/N/CAN/65 
Page 4  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Farm Income Payment Program  
 
(2) Domestic legislation reference:  
 
The Farm Income Protection Act, subsection 12(5) 
 
(3) Detailed description of measure with reference to criteria:  
 
Farm Income Payment Program (FIPP) – The federal government  provided a decoupled 
income support payment to producers of cattle and other ruminant animals (e.g., elk, bison) 
that have been affected by the prolonged cl osure of the Canada-U.S. border ($155 million) 
and a general decoupled income support payment to the agriculture sector as a whole 
($842 million). 
 
Producers of cattle and other ruminant animals that had reported farm income in 2003 for tax 
purposes received a per/head payment on elig ible bovine animals (pro-rated for other 
ruminant animals) based on inventory on 23 D ecember 2003.  Eligible animals included all 
bovine animals except mature bulls and cows (i.e. cows that have calved and intact bulls older 
than one year) with similar eligibility criteria for other ruminant animals.  The total cost was 
$155 million.   
 
The federal government also provided  a general payment to all produ cers.  To be eligible for 
the general payment the producer had to have re ported farm income in 2002 for tax purposes.  
The payment was based on a percentage of the pr oducer's five-year average historic eligible 
net sales (1998-2002).  The percen tage was determined by dividi ng the total funding available 
by total average eligible net sales.  Eligible ne t sales were defined as total sales of all eligible 
commodities minus total purchases of all elig ible commodities. The total cost was $842 
million.   
 
These payments conform with the general crite ria under Annex 2, paragraph 1 and the policy 
specific criteria under decoupled income suppor t (paragraph 6).  The support is provided 
through a publicly funded government program not involving transfers from consumers; and 
does not have the effect of providing price support to producers.  Eligibility for both 
payments were based on clearly defined criteri a in a fixed and defined base period.  The 
amount was not based on the type or volume of  production, prices or factors of production 
employed in any year after the base period.   
 
For payment to producers of cattle and other ruminant animals, eligibility was based on 
whether producers reported farm income for ta x purposes and had inventory in a fixed and 
defined based period (i.e., reported farm inco me in 2003 for tax purposes and having eligible 
animals on 23 December 2003).  The amount of payment was based on a set total amount and 
was not based on the type or volume of production, prices or factors of production employed  G/AG/N/CAN/65 
 Page 5 
 
 
  in any year after the base period.  For the ge neral payment to all producers, eligibility was 
based on whether the producer reported farm income for tax purposes in a fixed and defined 
base period (i.e., 2002).  The amount of the payment was based on a percentage of the 
producer’s five year historic eligible net sales (1998-2002) and was not based on the type or 
volume of production, prices or factors of production employed in any year after the base 
period. 
 
(4) Cost of measure:  
 
 $997 million ($155 million to producers of rumina nt animals, $842 million under the general 
payment to all producers)  
 
(5) Date of entry into effect: 
 
March 2005 
 
(6) Period of application:  
 
FY 2005/06 
 
(7) Products to principally benefit (if any individual product(s)): 
 
Ruminant animals under the ruminant related payment. 
 Any product under the general payment. G/AG/N/CAN/65 
Page 6  
 
  Table DS:2 
DOMESTIC SUPPORT: CANADA  
 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction 
__________________________________________________________________________________ 
 
 
(1) Full title of measure: 
 
Canadian Agriculture and Food International 
 
(2) Domestic legislation reference:  
 
Department of Agriculture and Agri-Food Act , Section 4 
 
(3) Detailed description of measure with reference to criteria:  
 
The objective is to support Canada's agriculture  and food industry by helping to build long-
term international strategies.  Initiatives include : marketing strategies to establish generic and 
industry-wide brands and help gain recognition around the world for Canada's superior, safe, 
and environmentally sound practices; technical  marketing support, such as educational 
programs for foreign buyers to raise awareness of the attributes of Canada's agricultural and 
food products; and industry-led trade advocacy initiative to improve market access, build 
alliances and defend Canada's trade interests.   
 
This component conforms with the general cr iteria under Annex 2, paragraph 1 and the policy 
specific criteria under the Marketing and Prom otion Services of the General Services 
category, paragraph 2(f).  The support is pr ovided through a publicly funded government 
program not involving transfers from consumers; and does not have the effect of providing 
price support to producers.  Support is for marketing and promotion services. There are no 
expenditures that could be used by sellers to  reduce their selling price or confer a direct 
economic benefit to purchasers.  There are also no direct payments to producers or 
processors. 
 
(4) Cost of measure:  
 
$125 million over 5 years (FY 2003/04 – 2007/08) 
 
(5) Date of entry into effect: 
 
December 2003 
 
(6) Period of application:  
 
Five years (FY2003/04-2007/08) 
 
(7) Products to principally benefit (if any individual product(s)): 
 
Any product.  
 
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