WORLD TRADE  
ORGANIZATION  G/SCM/Q2/CAN/43 
27 May 2010 
 (10-2946) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by AUSTRALIA1 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.    
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Question 1 
 
Structured Financing Facility for New Canadian-built vessels
 
 
 This programme stimulates demand for new Canadian-built vessels produced in existing Canadian shipyards by providing financing assi stance to Canadian and foreign buyers/lessees.   
  Can Canada please provide details of the eligibility criteria and guidelines for 
expenditure under this programme?  Can Canada pl ease provide the total amount of financial 
assistance provided, the number of Canadian buyers/lessees supported, and the number of 
foreign buyers/lessees supported under this programme for FY2006/2007 and 2007/2008?   
 
Reply
 
 
 The eligibility criteria and guidelines are de scribed on Industry Canada's website at the 
following address:  http://www.ic.gc.ca/eic/site/s im-cnmi.nsf/eng/uv00003.html .   
  Details on the specific projects funded, financial assistance provided please see the following website link:  http://www.ic.gc.ca/eic/site/sim-cnmi.nsf/eng/uv00033.html
.   
 
 Expenditures under this programme are made only once the project is completed and the 
vessel has been delivered to the purchaser.  There has never been a project involving a lease.   
 
Question 2 
 
Northern Ontario Development Programme  
  This programme encourages the growth, economic diversification, job creation, and sustainable, self-reliant communities in Northern  Ontario, through a range of initiatives aimed 
                                                     
 
1 G/SCM/Q2/CAN/37.   
2 G/SCM/N/186/CAN.   G/SCM/Q2/CAN/43 
Page 2  
 
  at improving business access to capital, informatio n and markets.  Assistance is in the form of 
repayable or non-repayable contributions.     The programme website (http://www.ic.gc.ca/eic/site/fednor-fednor.nsf/eng/fn02366.html) provides that "Fed Nor is committed to increasing Northern 
Ontario's share of international and interprovi ncial trade.  By assisting with trade skills 
development, trade expansion and export deve lopment, FedNor helps Northern firms enter 
world markets.  FedNor also encourages th e application of electronic commerce and the 
development of small and medium-sized enterpri ses' export capacity as ways for businesses in 
Northern Ontario to compete in global trade".   
 
 Can Canada please provide details of the eligibility criteria and guidelines for expenditure under this programme?  Can Cana da please provide the total amount of 
expenditure and the number of entities assisted under this programme for FY2006/07 and 2007/08?  What has been the effect of the programme on the value and quantity of exports from 
Canada?    
Reply
 
  Normally, eligible applicants for the NODP pr ogramme are located in Northern Ontario or 
conduct their activities in Northern Ontario or provid e a direct economic benefit to Northern Ontario 
as a result of the funding.  Applicants may include, municipalities and municipal economic 
development organizations;  Fi rst Nations;  Educational ins titutions;  Community economic 
development corporations;  Other not-for-profi t organizations including business or trade 
associations;  and small and medium sized enterprises (SMEs).    
 The following are eligible expenditures cove red under this programme: consultant fees for 
professional and technical services;  labour costs;  some operating, administrative and travel expenses;  costs related to the dissemination of information a nd project results;  costs required to organize a 
seminar, symposium or conference;  costs required to organize an international mission or familiarization (FAM) tour;  costs associated with  producing and disseminati ng promotional material 
necessary for market development;  and costs asso ciated with adapting product to new market 
standards or consumer preference.   
  Expenditures during the FY 2006/07 totalled $1,537,500 (four projects) and FY 2007/2008 
$654,218 (four projects).    
 With regards to exporters, FedNor contri buted funds to community based not-for-profit 
organizations to offer one-on-one Trade Advisory Services to SMEs and export related training.  
318 SMEs were assisted which resulted in 17 new e xporters.  Further, FedNor  contributed funds to 
support the creation of two Industry Associations (m ining and forestry).  Since inception the mining 
association has grown to over 100 members.  The forestry association has 23 members.  Finally, 
FedNor contributed funds to support the developm ent of a consortium of manufacturing companies 
interested in bidding on large internationa l projects, which 22 firms have joined.   
 
Question 3 
 
Western Diversification Programme
 
 
 The objective of the programme is to prom ote economic development and diversification 
in Western Canada through pr ogramme and project development and implementation to 
support innovation, promote a competitive and expanded business sector in Western Canada  G/SCM/Q2/CAN/43 
 Page 3 
 
 
  and develop sustainable communities that improve the competitiveness and quality of life in the 
West.     The programme website (http://www.wd.gc .ca/eng/301.asp) provides that, for 2009-
2010, priorities include projects that, among other things, enhance trade and investment, and 
that the programme is available to "stimulate trade and export opportunities that result in 
increased participation in domestic and international markets".     Can Canada please provide details of the eligibility criteria and guidelines for expenditure under this programme?  Can Cana da please provide the total amount of 
expenditure and the number of entities assisted under this programme for FY2006/07 and 
2007/08?  What has been the effect of the programme on the value and quantity of exports from Canada?   
 
Reply
 
 
 Contributions provided under Western Economic  Diversification Cana da's (WD) Western 
Diversification Program (WDP) support activities th at develop and diversify the western Canadian 
economy and where economic and/or employment bene fits accrue primarily within Western Canada.  
Funding is focused on activities that encourag e entrepreneurship, innovation and community 
economic development.  Additional information on the WDP and eligibilit y criteria is available at the 
links below:   
  General Overview:  http://www.wd.gc.ca/eng/301.asp
 
 Terms & Conditions:  http://www.wd.gc.ca/eng/11453.asp  
 
 Expenditures and results related to the sub- activities Market/Trade Development & Foreign 
Direct Investment under the Western Diversification Program for the fiscal years 2006/07 and 2007/08:    
Western Diversification Program 
 FY2006/07 FY2007/08 
Market/Trade Development 
Expenditures $33,605,805 $7,499,697 
Entities Assisted 37 12 
Foreign Direct Investment (FDI)  
Expenditures $76,263 $53,471 
Entities Assisted 2 1 
 
 WD does not directly measure the effect of its programmes (including the Western Diversification Program) on the value and quantity of  exports from Canada.  Ho wever, as identified in 
WD's Performance Report for the period ending 31 March 2008, the impact of all Market/Trade 
Development or FDI projects (supported under all of WD's programmes, including but not limited to 
the WDP) reporting results from 1 April 2005 thro ugh 25 June 2008 is summarized below:   G/SCM/Q2/CAN/43 
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Sub-Activity Goal P erformance Indicator Outcome 
Reported 
Industry association partnerships created 14 
Companies participating in export and 
market development initiatives 545 Market/Trade 
Development Increase in number 
of successful 
partnerships and strategic alliances Project promoting participation in major 
international events 10 
$ in direct investment facilitated by WD $1,000,000 Foreign Direct 
Investment Increase in foreign 
direct investment in 
Western Canada Businesses created/maintained/expanded 5 
 
Source:  WD Performance Report (for the period ending 31 March 2008):  http://www.tbs-sct.gc.ca/dpr-
rmr/2007-2008/inst/wco/wco-eng.pdf .   
 
Question 4 
 
Book Publishing Industry Development Programme  
  The objective of BPIDP is to ensure th at readers have access to a diverse range of 
Canadian authored books in Canada and abroad.  BPIDP provides repayable contributions.  
BPIDP recipients are Canadian-owned book publis hers, associations and firms representing one 
or more sectors of the book trade.  One co mponent of BPIDP is International Marketing 
Assistance, which supports all sectors of the Ca nadian book industry to develop and increase 
export sales of Canadian-authored books.    
 What has been the effect of the Internat ional Marketing Assistance programme on the 
quantity and value of book exports from Canada?   
 
Reply
 
  The Canada Book Fund (CBF), formerly the B ook Publishing Industry Development Program 
(BPIDP), is designed to develop and increase sales  of Canadian-authored books.  Please note that 
under the CBF, the programme structure has been recently reorganized and, while programme 
objectives and support levels re main roughly equivalent, there is no longer a component entitled 
International Marketing Assistance (IMA).  Pr ogramme recipients are Canadian-owned book 
publishers.  Each year, the programme delivers ro ughly $4 million to approxi mately 150 publishers.  
In 2008-2009, 159 recipients received a total of $3 ,924,080 in contributions linked to marketing 
support IMA component.     In the 2008-2009 programme year, IMA recipients  reported total export sales of Canadian-
authored books of $79,533,680.  In the 2008 Summative Evaluation of the BPIDP, which covered the period 2003-2004 to 2006-2007,  55 per cent of publishers who r eceived support indicated that this 
support had likely contributed to increased sales.  In 2009-2010, the data on  unit sales began to be 
garnered, but the information is not yet available.      
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