Appearance before the Standing Committee on Industry and Technology (INDU) by the Minister of International Trade, Export Promotion, Small Business and Economic Development

March 4th 2022

SME Support during COVID-19

Key Messages:

  • Small businesses are the backbone of our economy, our main streets, and our communities.
  • The Government of Canada has made a historic investment to address the challenges caused by COVID-19, protecting millions of jobs and supporting businesses across Canada.
  • In fact, eight out of every ten dollars committed in Canada to respond to the pandemic have come from the federal government.
  • New programs and ongoing support for businesses in the most affected sectors will protect and create jobs, ensure the strongest possible recovery, and help businesses get back on their feet.

Supplementary messages:

  • COVID-19 has caused businesses across the country, both large and small, to rethink their approaches. Entrepreneurs and owners are looking at more digital options, more creative solutions, and more climate-friendly investments.
  • Key Figures: (Data last accessed January 12, 2022):
  • CEBA: 898,254 businesses received $49.17 billion
  • CEWS: Total applications approved: 4,888,140

Total disbursed: $99.13 billion
Supported employees: 5.3 million
CERS (includes Lockdown Support): Total applications approved: 1,962,390 
Total disbursed: $7.46 billion ($6.37B for CERS and $1.09B for Lockdown Support)

Background:

The Tourism and Hospitality Recovery Program (THRP) targets selected tourism and hospitality industries that have been particularly affected by the pandemic and continue to struggle. Will provide both rent and wage subsidies, similar to the CEWS and CERS, with a maximum rate of 75% for both. The THRP is set to run from October 24th, 2021 to May 7th, 2022. The rent and subsidy rates will be reduced by half starting March 13th, 2022, until the end of the program in May.

The Hardest-Hit Business Recovery Program (HHBRP) will provide similar support as the THRP, but for those industries that are not included in the eligible industries' list, but which still faced significant hardship. The rent and subsidy rates will be reduced by half starting March 13th, 2022, until the end of the program.

The Canada Worker Lockdown Benefit (CWLB) will provide income support to workers who are unable to work as a direct result of government-imposed lockdowns. It will be available retroactively as of October 24th, 2021, and will run up to May 7th, 2022. The benefit will provide $300 a week for the duration of the lockdown, and be available to workers irrespective of their EI eligibility.

Canada Recovery Hiring Program (CRHP) was introduced in Budget 2021 to help employers hire the workers they need to recover and grow, with a subsidy of up to 50 per cent of additional eligible salary or wages. The CRHP will be extended until May 7th, 2022.

The Highly Affected Sectors Credit Availability Program (HASCAP) is providing further support to hard-hit businesses through the COVID-19 pandemic. Eligible businesses are able to access government-guaranteed, low-interest loans ranging from $25,000 to $1 million at any participating financial institution. As of October 31, 2021, 11,489 loans were approved, valued at $2.655 billion. The HASCAP deadline has been extended until March 31, 2022.

Canada Recovery Caregiving Benefit (CRCB) and Canada Recovery Sickness Benefit (CRSB) provide a payment of $500 per household for each 1-week period to individuals who cannot work because they or a family member are sick, self-isolating or at risk of serious health complication due to COVID-19. The CRCB and CRSB will be extended to May 7th, 2022. The CRCB has delivered $3.58 billion to 7,154,360 applicants. The CRSB has delivered $742.2 million to 1,484,390 applicants.

The Shop Local initiative was launched in June 2021. $33 million to encourage Canadians to shop locally, provided through provincial and territorial chambers of commerce to support awareness-building campaigns. The initiative draws to a close at the end of March 2022.

Canada Digital Adoption Program (CDAP) Budget 2021 announced the $1.4 billion CDAP to help SMEs adopt new digital technologies and to fuel the recovery, jobs and growth. CDAP consists of two streams of support for businesses, Stream 1: Grow Your Business Online, and Stream 2: Boost Your Business Tech. Stream 1 will provide SMEs micro-grants to help with the costs related to adopting digital technologies as well as support and advice from a network of youth digital advisors. Stream 2 will help businesses develop and implement digital adoption strategies.

Closed Programs:
The Canada Emergency Rent Subsidy (CERS) and Lockdown Support. On October 24, 2021, the CERS was replaced with the Tourism and Hospitality Recovery Program (THRP) and the Hardest-Hit Business Recovery Program (HHBRP).

Canada Emergency Wage Subsidy (CEWS) as of December 19, 2021, the Canada Emergency Wage Subsidy has helped more than 5.3 million Canadians keep their jobs, with over $99 billion in support already paid out through the program to help employers re-hire workers and avoid layoffs. On October 24, 2021, the CEWS was replaced with the Tourism and Hospitality Recovery Program (THRP) and the Hardest-Hit Business Recovery Program (HHBRP).

Canada Emergency Business Account (CEBA). New applicants can no longer apply for a $60,000 CEBA loan or the $20,000 expansion at their financial institution. As of December 2, 2021, the number of businesses approved for CEBA loans is 898,254. The number of businesses approved for CEBA expansions is 569,282. The total funds approved for CEBA loans and expansions is $49.17 billion. On January 12, 2022, the repayment deadline for CEBA loans to qualify for partial loan forgiveness was extended to December 31, 2023 for eligible borrowers in good standing.

Canada Recovery Benefit (CRB) gives income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits for up to a total of 27 eligibility periods (54 weeks) between September 27, 2020, and October 23, 2021. The CRB was extended until October 23, 2021. As of January 2, 2022, a total of 29,855,270 applications were approved, valued at $28.39 billion.

Regional Relief and Recovery Fund (RRRF) is a $2 billion liquidity assistance for businesses affected by the COVID-19 pandemic that have been rejected by or were unable to access other federal pandemic support programs. Eligible applicants can get funding up to $40,000, with up to $10,000 forgivable if the non-forgivable portion is repaid by December 31, 2022. An additional funding over $40,000 and up to $60,000 is available, with up to $10,000 forgivable if the non-forgivable portion is repaid by December 31, 2022. On January 12, 2022, the repayment deadline to qualify for partial forgiveness was extended to December 31, 2023.

Business Credit Availability Program (BCAP). Loans of up to $12.5 million through BCAP's co-lending program to assist with operational cash flow – interest-free for the first year and provided on commercial terms. The mid-market financing program extended loans $12.5 million to $60 million. As of June 30, 2021, approximately 700 companies have received nearly $1.2 billion. Onboarding period ended on December 31, 2021, but organizations with a Guarantee in place continue to be covered for up to five years from the loan signing date.

SME Support for employees during COVID-19

Key Messages:

  • Canada's COVID-19 Economic Response Plan has protected millions of jobs, provided emergency support to families, and kept businesses afloat throughout the pandemic.
  • The Government of Canada introduced a number of relief measures to help small and medium-sized businesses support their employees during the COVID-19 pandemic.
  • Budget 2021 extends employee supports through to the fall, supports almost 500,000 new training and work opportunities, and keeps Canada on track to create one million jobs by the end of the year.
  • The government is also creating the Canada Recovery Hiring Program to help businesses hire more workers as the economy reopens.

Background:

Tourism and Hospitality Recovery Program (THRP)
Provides support through wage and rent subsidies to selected tourism and hospitality industries with a subsidy rate of up to 75%. Eligibility would generally be restricted to organizations for which more than 50% of their pre-pandemic revenues were earned from carrying activities in eligible tourism and hospitality industries. The program runs from October 24, 2021 to May 7, 2022.

Hardest-Hit Business Recovery Program (HHBRP)
Provide similar support as the THRP, but for those industries that are not included in the eligible industries' list, but which have experience significant hardship. Eligibility requirements qualifications are more rigorous, being an average monthly revenue reduction of at least 50% between March 2020 and February 2021 and a current-month revenue loss of at least 50%. The maximum subsidy rate for this program is 50%. The rent and subsidy rates will be reduced by half starting March 13, 2022, until the end of the program.

Local Lockdown Program
Provides businesses that face new local lockdowns with up to the maximum amount of support available through the wage and rent subsidy programs. The regulatory changes announced on December 22, 2021, temporarily expanded from December 19, 2021, to March 12, 2022, the initial eligibility requirement to include employers subject to capacity-limiting restrictions of 50% or more and reduced the current-month revenue decline threshold requirement to 25%. The program is available until May 7, 2022.

Canada Worker Lockdown Benefit
Provides $300 a week to eligible workers who are unable to work due to a temporary local lockdown anytime between October 24, 2021 and May 7, 2022. The benefit is only available when a COVID-19 lockdown order is designated for a region.

Canada Recovery Sickness Benefit
Provides $500 per week for up to six weeks, for workers who are unable to work for at least 50% of the week because they contracted COVID-19, are self-isolated, or have underlying conditions, are undergoing treatments or have contracted other sicknesses that would make them more susceptible to COVID-19. This benefit is available until May 7, 2022.

Canada Recovery Caregiving Benefit
Provides $500 for up to 44 weeks per household for workers who are unable to work for at least 50% of the week because they must care for a child under the age of 12 or family member because schools, day-cares or care facilities are closed due to COVID-19, or because the child or family member is sick and/or required to quarantine or is at high risk of serious health implications because of COVID-19.

Canada Recovery Hiring Program
This program will offset a portion of the extra costs employers take on as they reopen, either by increasing wages or hours worked, or hiring more staff. Eligible employers would claim the higher of the this program or the wage portion of the THRP, or the HHBRP. The program is extended to May 7, 2022.

Jobs and Growth Fund
The Fund is a $700-million program that supports regional job creation and positions local economies for long-term growth. This includes up to $70 million dedicated to businesses created after January 2020. The Fund will help businesses and organizations that support the transition to a green economy, foster an inclusive recovery, enhance Canada's competitiveness through digital, and strengthen capacity in sectors critical to Canada's recovery and growth.

Extending the Work-Sharing Program
Government has extended the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19.

Canada Small Business Financing Program

Key Messages:

  • The Canada Small Business Financing Program is a statutory program that helps small businesses access financing. It was established in 1999 and replaced the Small Business Loans Program.
  • Budget 2021 proposed to improve the Canada Small Business Financing Program, delivered in partnership with financial institutions, by:
  • Expanding loan eligibility
  • Increasing the maximum loan amount to $500,000
  • Including non-profits and charitable social enterprises
  • Introducing a new line of credit option
  • These changes will help more small businesses access the type of financing they need to start up and scale-up, as well as those that have been hardest hit by the COVID-19 pandemic to recover and succeed.

Background:

The Government of Canada recognizes the need for small and medium-sized enterprises (SMEs) to have access to financing, particularly in this economic downturn as a result of COVID-19. The CSBFP is a longstanding statutory program that partners with private sector financial institutions to increase the availability of financing to small businesses so they can start up, grow and modernize. The increase in the amount of financing extended to small businesses is expected to ultimately stimulate economic activity and create jobs for Canadians.

The recent 5-year Comprehensive Review Report demonstrated that the program continues to be successful in facilitating debt financing for small businesses but it must continue to evolve to meet the changing needs of small businesses in a digital and knowledge-based economy.

Through Budget 2021, the Government of Canada is taking action to improve access to financing for small businesses by expanding the CSBFP. Previously, the program could only be used by for-profit small businesses and was limited to term loans for real property, equipment and leasehold improvements. In June 2021, the Budget Implementation Act made amendments to the Canada Small Business Financing Act to allow not-for-profit, charitable and religious enterprises as eligible businesses. This change aligns with the recommendations made by the Social Innovation and Social Finance Strategy Co-creation Steering Group and will improve access to affordable financing for social enterprises in Canada by allowing them to access program loans from the financial institution of their choice. These enterprises are critical to the short and long-term success of the country as they generate significant social and economic benefits for Canadians.

Regulatory amendments are being developed to introduce a line of credit financing option and to expand loan class eligibility to include the financing of intangible assets, like intellectual property (e.g., patents, copyrights, trademarks) and working capital. Together with increased maximum loan amounts (from $350,000 to $500,000) and government coverage periods extended from 10 to 15 years for equipment and leasehold improvements, these changes will better meet the financing needs of modern Canadian small businesses, especially those in the industries hardest hit by the COVID-19 pandemic, and will support their efforts to recover and succeed.

These changes are expected to come into force in summer/fall 2022.
These proposed amendments are projected to increase annual financing by $560 million, supporting approximately 2,900 additional small businesses.

Canada Digital Adoption program

Key Messages:

  • For Canada's businesses to thrive and reach customers in an increasingly digital world, they need the tools, resources and opportunities to go digital.
  • Budget 2021 announced the creation of the Canada Digital Adoption Program, a $1.4 billion investment over four years to help up to 160,000 businesses enter the digital era.
  • The program will provide grants to small and medium-sized businesses to support the cost of technology adoption, ultimately helping them meet customers' needs and compete in the online marketplace.

Background:

As part of Budget 2021, the Government of Canada announced the creation of the Canada Digital Adoption Program (CDAP) to help small and medium-sized enterprises (SMEs) adopt new digital technologies. This new program will help Canadian small businesses become more efficient, go digital, take advantage of e-commerce and become more competitive in Canada and abroad.

Budget 2021 proposes a $1.4 billion investment over four years, starting in 2021-22, to:

  • Work with organizations across Canada to provide access to skills, training, and advisory services for all businesses accessing this program;
  • Provide microgrants to smaller businesses to support costs associated with technology adoption;
  • Help larger businesses with the development and implementation of digital adoption strategies; and,
  • Create training and work opportunities for as many as 28,000 young people to help small and medium-sized businesses across Canada adopt new technology.

Budget 2021 also proposes to provide $2.6 billion on a cash basis over four years, starting in 2021-22, to the BDC to help SMEs in Stream 2 finance technology adoption – bringing the government's total investment to help move SMEs into the digital age to $4 billion.
CDAP consists of two grants:

Grow Your Business Online is designed to help customer facing businesses, digitize and take advantage of e-commerce opportunities. Eligible businesses will receive microgrants of up to $2,400 to help with the costs related to adopting digital technologies as well as support and advice from a network of youth digital advisors. The department will be selecting non-profit intermediaries to distribute the microgrants and hire, train, and deploy the youth digital advisors. It is expected that businesses will be able to access the supports though their local intermediary in 2022.

Boost Your Business Technology will help larger SMEs that require more comprehensive support to adopt complex technology. Support will emphasize advisory expertise for technology planning and financing options needed to put these technologies to use. Eligible SMEs can receive grants to develop the digital adoption plans for up to 90 percent of the cost of the plan to a maximum of $15,000. Additionally, SMEs can apply for zero-percent financing of up to $100,000 from the BDC to help them implement their digital adoption plans. They can also leverage a wage subsidy of up to $7,300 for a youth work placement to assist with their digital transformation. Youth placements tied to the Boost Your Business Technology grant will be administered by a third party intermediary, selected through a separate call for applications.
CDAP's Boost Your Business Technology grant will be delivered through the following support measures:

  • Grants: for advisory services to develop the digital adoption plans for up to 90 percent of the cost of the plan to a maximum of $15,000.
  • Digital Advisory Marketplace (DAM): on-line tool to assist SMEs find registered Digital Advisors that will work with them to develop digital adoption plans.
  • Digital Needs Assessment Tool: online tool for SMEs to assess their digital maturity with a benchmark compared to their industry.
  • Youth Work Placements: SMEs can access a wage subsidy of up to $7,300 for a youth work placement to assist with their digital transformation.
  • Zero interest loans: The Business Development Bank of Canada (BDC) will administer and manage zero-interest loans of up to $100,000 to assist with their digital transformation.

It is expected that CDAP will help as many as 160,000 SMEs (90,000 through the Grow Your Business Online grant and 70,000 through the Boost Your Business Technology grant) adopt new digital technologies, and approximately 28,000 young Canadians (11,200 through the Grow your Business Online grant, and 16,800 through the Boost Your Business Technology grant) could be hired and trained to work with Canadian SMEs to facilitate their digital transformation.

Black Entrepreneurship Funding

Key Messages:

  • Many Black entrepreneurs and business owners face systemic barriers daily. They have also been disproportionately affected by the COVID-19 pandemic.
  • The Government of Canada has acted to address those systemic barriers, to create stronger economic opportunities for the Black Canadian business community, and build a more inclusive future for everyone.
  • In September 2020, the government created the first-ever Black Entrepreneurship Program (BEP) with an investment of up to $265 million. This includes an investment of $130 million from the Business Development Bank of Canada (BDC) in the Black Entrepreneurship Loan Fund, to support the next generation of Black Canadian entrepreneurs.

Supplementary Messages:

  • Black entrepreneurs and business owners make invaluable contributions to Canada's economy every day. For far too long, they have been confronted by barriers that have hindered their progress.
  • As a result of tremendous response to the call for concepts for the National Ecosystem Fund, Budget 2021 invested an additional $50 million over four years, starting in 2021-22, in this important program. The Regional Development Agencies announced the first batch of Ecosystem Fund recipients in August 2021, and continue to review applications with the view to announcing another set of successful recipients.
  • The Loan Fund, now a total investment of $160 million, aims to provide loans of up to $250,000 to support Black business owners and entrepreneurs across Canada. The Loan Fund is administered by the Federation of African-Canadian Economics, in partnership with the Business Development Bank of Canada (BDC). The fund started accepting applications on May 31, 2021.
  • On December 13, 2021, the government announced that Carleton University and Dream Legacy Foundation would be responsible for managing the Black Entrepreneurship Knowledge Hub.

Background:

On November 23, 2021, the government's Speech from the Throne stated "This is the moment to rebuild for everyone. The government will continue to invest in the empowerment of Black and racialized Canadians, and Indigenous Peoples."

The Black Entrepreneurship Program (BEP) is an investment of up to $265 million over four years, in partnership with the Business Development Bank of Canada (BDC), that will help address the systemic barriers that Black business owners and entrepreneurs face, providing targeted support and increased access to capital.

Originally announced in September 2020, BEP is composed of three main components, with funding as follows:

  • Up to $100 million (including $50 million from Budget 2021) to develop and implement a new National Ecosystem Fund to support Black-led business organizations across the country. It will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services, and business training.
  • Up to $30 million (from ISED) in support through the new Black Entrepreneurship Loan Fund that will provide loans of up to $250,000 for Black business owners and entrepreneurs. The government is also partnering with BDC ($130 million) for a total of $160 million.
  • Up to $5 million to create and sustain a new Black Entrepreneurship Knowledge Hub that will collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs' barriers to success as well as opportunities for growth. The Hub will be run by Black-led community and business organizations, in partnership with educational institutions.

In addition to increasing funding available to Black entrepreneurs through the Black Entrepreneurship Loan Fund, the BEP will help Black business owners and entrepreneurs by strengthening business and mentorship supports in their communities through Black-led business organizations (National Ecosystem Fund) and by better capturing the experiences and challenges of doing business as a Black Canadian through the new Black Entrepreneurship Knowledge Hub.

The Loan Fund includes a pilot microloan program for Black entrepreneurs and business owners in British Columbia and Ontario seeking microloans between $10,000 and $25,000. The pilot, delivered by FACE in partnership with credit unions Vancity and Alterna Savings, will help address a critical gap in the marketplace for Black businesses that need less financial support to start up and grow.

Women entrepreneurship strategy

Key messages:

  • The Government of Canada understands that supporting the economic empowerment of women is not just the right thing to do, it's necessary for a strong, inclusive economy.
  • Over the next four years, the government is investing up to $146.9 million to strengthen the Women Entrepreneurship Strategy (WES).
  • This strategy will invest more than $6 billion over the long term to support women entrepreneurs.
  • These investments will provide affordable financing and increased data, and will strengthen capacity within the entrepreneurship ecosystem.

Supplementary Messages:

  • As part of the WES, the Women Entrepreneurship Loan Fund will provide affordable financing in smaller amounts for women entrepreneurs, and address under-served, diverse women entrepreneurs. ISED will be selecting non-profit administrator(s) to manage the fund and distribute loans. It is expected that women entrepreneurs will be able to apply for loans in 2022.
  • To build on the key role of its outreach, research and ecosystem support efforts during the pandemic, WES allocated an additional $5 million over three years to the Women Entrepreneurship Knowledge Hub, starting in 2021-22.
  • The government will work with financial institutions to develop a voluntary code to help support the inclusion of women and other underrepresented entrepreneurs as clients in the financial sector.

On support for women entrepreneurs during COVID-19:

  • The COVID-19 pandemic has disproportionately impacted women entrepreneurs and sectors where women entrepreneurs are most present, such as retail, hospitality and food services

Background:

Women Entrepreneurs in Canada
Women entrepreneurs own fewer than 16 percent of employer businesses, but account for 37 percent if self-employed women are included. They are more likely to lead businesses that are young, small, in low-growth sectors and underfinanced. These factors make it harder to access and secure financing.

The WES was launched in 2018 and represents a "whole-of-government" approach to increasing women-owned businesses' access to the financing, talent, networks and expertise they need to start-up, scale-up and access new markets. Overseen by ISED, the WES represents over $6 billion in investments and commitments from almost 20 different federal departments, agencies and Crown corporations.

Despite gains made through the WES in recent years, women entrepreneurs continue to face persistent barriers which are stunting the growth of women entrepreneurship, many of which were further exacerbated by the COVID-19 pandemic. Announced in the Speech from the Throne in September 2020, the government committed to accelerating the WES in the context of the Action Plan for Women in the Economy. Budget 2021 announced an investment of $146.9 million.

WES programs and initiatives
As part of the investment, WES is implementing a $55-million Women Entrepreneurship Loan Fund to provide affordable financing in smaller amounts for women entrepreneurs, and address under-served, diverse women entrepreneurs. The national call seeking applications from non-profit administrators to manage the fund and distribute loans of up to $50,000 to women-led businesses closed in Fall 2021. It is expected that women entrepreneurs will be able to apply for loans in 2022 once a selected administrator ramps up service offering.

Through Budget 2021, the WES Ecosystem Fund was renewed to further address gaps in the entrepreneurship ecosystem. On January 11, 2022, the government launched a call for proposals allocating $25 milion for new projects that are focused on responding to systemic barriers and gaps for diverse, intersectional and/or under-served women. Applications close on March 15, 2022. First announced in 2018, the WES Ecosystem Fund is designed to help non-profit, third-party organizations strengthen capacity within the entrepreneurship ecosystem and offer business supports such as training, mentorship and financial literacy for women entrepreneurs. REDACTED

Up to $8.6 million was allocated over three years to create a Women Entrepreneurship Knowledge Hub (WEKH). Led by Ryerson University, and supported by 10 regional hubs and a network of over 300 organizations, the hub serves as a one-stop source of knowledge, data and best practices. Under Budget 2021, the WEKH received an additional $5 million in funding, as announced August 3, 2021.

The Women Entrepreneurship Fund (2018-21) was a $30-million initiative that directly invested in women-owned and -led businesses across Canada, prioritizing diverse women entrepreneurs. This included $2.5 million allocated to Indigenous women entrepreneurs. All funding has been allocated and supported a total of 321 projects.

Select Participating Government Departments and Agencies (Initiatives since 2018):

  • Business Development Bank of Canada:
    • $1.4 billion over three years allocated to debt financing for women-owned businesses (target exceeded).
    • $200 million over five years allocated to the Women in Technology Venture Fund.
    • will seek to support 19,000 direct women-owned businesses in 2024, an increase of nearly 7,000.
  • Export Development Canada:
    • $6 billion in solutions and servicing 2,000 unique, women-owned and women-led customers with financing, insurance, and knowledge solutions by 2023.
    • $200 million for Inclusive Trade Investment Program.
  • Global Affairs Canada:
    • $10 million over five years to the Trade Commissioner Service to connect Canadian businesswomen with expanded global export and trade opportunities.
    • Financial assistance through CanExport to develop new export opportunities/ markets.
  • Farm Credit Canada:
    • $500 million in financing over three years to support women entrepreneurs in agriculture and agri-food (target exceeded).

Clean Technology

Key Messages:

  • The Government of Canada is laying the foundation for a more resilient, sustainable and competitive economy by focusing on innovation and good, green jobs and investing in clean technology.
  • Cleantech offers significant benefits to Canadians by helping to meet our climate goals and protecting our planet for future generations, while driving economic prosperity and creating more than 211,000 well-paying jobs across Canada.
  • Budget 2021 provides $17.6 billion toward a green recovery that will create middle-class jobs, build a clean economy and help protect against climate change.

Supplementary Messages:

  • These new investments will be a cornerstone of the government's plan to rebuild the economy, help Canadians make their homes greener and invest in world-leading technologies that make industry cleaner and reduce pollution.
  • Clean technologies contributed more than $28.8 billion to the Canadian economy in 2019, including the export of approximately $7.05 billion worth of clean technology goods and services.
  • Employees in cleantech are better paid than the average Canadian worker, and women account for 41 per cent of all jobs employed in the cleantech sector. Women and Indigenous peoples in cleantech are also better compensated on average than in the general workforce. Moreover, Indigenous peoples are better represented in cleantech compared to the overall economy.

Background:

Budget 2021

Specific cleantech budget measures identified for Innovation, Science and Economic Development Canada include:

  • $24 million over three years to renew the:
  • Clean Technology Data Strategy to continue to measure the cleantech sector's contribution to Canada's economy; and
  • Clean Growth Hub to continue to help clean technology companies navigate federal resources and supports.
  • $5 billion over seven years to increase funding to the Net Zero Accelerator. This additional support builds on the $3 billion over five years announced in the strengthened climate plan in December 2020. This funding will allow the government to provide up to $8 billion of support for projects that will help reduce domestic greenhouse gas emissions across the Canadian economy.
  • $1 billion over five years to leverage private investments toward large transformative clean technology projects. This initiative will eliminate risk from decarbonization projects for traditional lenders, bringing down the cost of capital, and making many of these large-scale projects more economically feasible, decarbonizing the Canadian economy and creating new jobs.

Strengthened climate plan

In December 2020, the Government announced a strengthened climate plan designed to make Canada's economy stronger and more competitive in the emerging clean global marketplace. This plan is a cornerstone of the Government's commitment in the 2020 Speech from the Throne to create more than 1 million jobs and restore employment to pre-pandemic levels. It includes 64 new measures and $15 billion in investments to build a stronger, cleaner, more resilient and inclusive economy.

Growing Canada's industrial advantage and the jobs that come from it will depend on the speed and success of decarbonization efforts. To achieve Canada's full potential, ISED is proud to support Canadian companies as they seek to meet the demands of domestic and global consumers for low-carbon goods and services, making investments that can drive the growth of Canada's low-carbon economy.

These measures include:

  • Strengthening support for Sustainable Development Technology Canada (SDTC) with an additional $750 million over five years, representing the single largest investment made by the Government in SDTC since its inception in 2001.
  • Making investments to support decarbonization and drive the immediate creation of well-paying, resilient jobs through an $8 billion investment over five years in the Strategic Innovation Fund's Net-Zero Accelerator Fund.

Speech from the Throne

The Speech from the Throne to Open the First Session of the 44th Parliament of Canada – Building a Resilient Economy: A Cleaner & Healthier Future for Our Kids – stresses that the government is taking real action to fight climate change, moving to cap and cut oil and gas sector emissions, while accelerating our path to a net-zero electricity future.

Investing in public transit and mandating the sale of zero emissions vehicles will support climate action. Increasing the price on pollution while putting more money back in Canadians' pockets will deliver a cleaner environment and a stronger economy.

Supporting Sustainable Development Technology Canada

SDTC is an arm's-length, not-for-profit organization created by the government to support the development of clean technologies. As of October 2021, SDTC-supported companies have generated $2.8 billion in annual revenues, created 16,930 jobs and brought 177 new technologies to market. These companies have reduced greenhouse gas emissions by an estimated 22.4 megatonnes annually, equivalent to taking almost 7 million cars off the road every year.

Business Development Bank of Canada(BDC)

Key Messages:

  • The Business Development Bank of Canada is devoted to helping Canadian entrepreneurs across the country access the support they need to grow and prosper.
  • This includes financial and advisory services such as the Black Entrepreneurship Loan Fund, the Indigenous Growth Fund, and the Women in Tech Venture Fund.
  • During the last fiscal year, the BDC authorized $9 billion in new loans, and added more than 10,000 new clients.
  • As part of the Canada Digital Adoption Program, the BDC will offer zero-interest loans to help small and medium enterprises with their digital transformation efforts.

Supplementary Messages:

BDC supplemental messages

  • BDC is helping foster innovation in Canada by supporting the development of a vibrant and diverse business ecosystem.
  • BDC is investing $200 million through its Women in Technology Venture Fund, one of the largest of its kind for women business owners in the world. As of March 31st, 2021, BDC had authorized $72 million to support 37 clients.
  • BDC is investing $100 million in the Indigenous Growth Fund, which will increase access to financing for Indigenous-led businesses through the network of Aboriginal Financial Institutions.
  • BDC committed $130 million to the Black Entrepreneur Loan Fund which will provide financing of up to $250,000 for Black business owners and entrepreneurs
  • In 2021, BDC invested in the new $10 million Black Innovation Fund, which is focused on investing in technology companies founded by Black entrepreneurs.
  • BDC will support the new Canada Digital Adoption Program by providing zero-interest loans to help Canadian businesses in their digital transformation.

COVID-19 support measures

  • The Highly Affected Sectors Credit Availability Program (HASCAP), delivered for government by BDC, provides low-interest loans of up to $1 million that are fully backed by the government. As of December 31, 2021, over 13,700 transactions had been authorized totalling $3.05 billion.
  • Delivering targeted activities under the Business Credit Availability Program (BCAP) on behalf of the government, providing loans to businesses to help cover operating cash flows needs. As of November 30, 2021, nearly $1.25 billion had been authorized to 718 companies. The application period for BCAP was closed on December 31, 2021.
  • Extending working capital loans for up to $2 million with flexible terms for businesses and enhancing access to financing through its online financing platform. As of December 31, almost 20,200 transactions had been authorized totalling $2.8 billion.
  • The Bank is also supporting the venture capital (VC) ecosystem through its new VC Bridge Financing Program by matching financing rounds in eligible Canadian start-ups. As of October 15, 2021, 99 deals had been authorized for $179 million.

Background:

Headquartered in Montreal, BDC supports entrepreneurs operating across sectors by providing services from more than 110 business centres located across Canada. As of March 31, 2021, BDC supported more than 72,000 Canadian entrepreneurs with $41.2 billion in committed capital.

BDC supports Canadian entrepreneurs through three main business lines: BDC Financing, BDC Capital, and BDC Advisory Services. Offerings include term loans, working capital, equity investments, growth capital and advisory services to help SMEs scale up, improve productivity, innovate & globalize.

To increase accessibility to financing, BDC's Small Business Loan makes available up to $100,000 quickly online.

BDC actively supports Canada's innovative companies, including early stage technology firms:

  • Announced in Budget 2021, the renewed VCCI will make available $450 million for national funds-of-funds, life sciences technologies, and an inclusive growth stream. Previous venture capital programs have invested $761 million in venture capital funds and fund managers. Selected managers have raised over $3 billion to help Canadian companies start-up and grow.
  • BDC is supporting the clean technology sector by extending $600 million in loans and investments to cleantech firms. As of September 30, BDC had authorized 64 transactions totalling $432 million.
  • As Canada's largest single venture capital investor, BDC has a VC portfolio of over nearly $2.4 billion invested directly in 800 companies and indirectly in 100 VC funds.

Cultural and creative industries

Key Messages:

Mandate Letter Commitment on EDC and Cultural Industries.

  • The government is committed to working with Crowns, including the Business Development Bank of Canada (BDC) and Export Development Canada (EDC), to support the growth of creative industries in existing and new markets.
  • EDC supports Canada's export trade and helps businesses respond to international opportunities through a range of trade finance and risk management services, including credit insurance, direct loans and loan guarantees.
  • Global Affairs Canada is actively exploring how EDC might enhance support for cultural exports.

Creative Export Strategy

  • Launched in 2018, the Creative Export Strategy (CES) established a 5-year $125M framework ($25M annually) to support creative sector exports and to promote Canadian values through cultural diplomacy.
  • The CES is led by Canadian Heritage (PCH) and supported by GAC. Under the current Strategy, PCH receives $19M annually for its export programs and Global Affairs Canada (GAC) receives $6M for trade promotion and cultural diplomacy.
  • CES funding will sunset on March 31, 2023. The renewed CES will focus solely on exports, and funds for the Trade Commissioner Service (TCS) are sought by the Minister of International Trade, Export Promotion, Small Business and Economic Development, while Canadian Heritage programs and funds are requested by the Minister of Canadian Heritage.
  • The Minister of Foreign Affairs is also seeking $20M annually to implement a new GAC-led Cultural Diplomacy Strategy, as per the Minister's mandate letter, to advance Canada's foreign policy priorities and increase Canada's influence and prosperity. The CES and the Cultural Diplomacy Strategy are complementary, but have different mandates and targeted outcomes.

Creative Export Strategy (CES) Renewal – Trade Commissioner Service Budget Proposal

  • MINT is seeking $8M in ongoing annual funding (22 FTEs and $1.8M for operations) to build upon the successes achieved by the Trade Commissioner Service (TCS) under the current Creative Export Strategy (CES), led the Department of Canadian Heritage (PCH).
  • GAC funding for the renewed CES will support three pillars:
  • Building a more robust TCS network (19 FTEs) to help Canadian creative firms grow their exports
  • Delivering more TCS trade initiatives ($700,000 for operations) to facilitate commercial outcomes for Canadian creative companies
  • Establishing Canadian Creative Accelerators ($998,400 for operations, 3 FTEs) in three creative hubs: Los Angeles, New York and Paris
  • PCH leads on the overall CES, and plans to seek $32M in annual funding for its export program, bringing the combined PCH-GAC ask to $40M annually.
  • The CES is due to sunset on March 31, 2023. Renewal is being sought to ensure an appropriate amount of time to have proposed FTEs in place by April 1, 2023 in order to avoid TCS service disruptions.

New Budget Process Pushed Submission Date to February

  • Finance Canada put in place a new process for funding requests that relate to the operations of government including requests for program renewals ("sun setters") and program integrity. These funding requests are considered outside of the Budget, in a spring/summer period. Such requests include core, mission-critical programming and operations of government departments.
  • Since the Creative Export Strategy budget proposal is a renewal, both GAC and PCH are submitting their proposals as part of this new process, which has a deadline of February 28, 2022. The submission process is expected to be the same.

Canada Emergency business account

Key messages:

  • EDC is playing a critical role in Canada's economic response to COVID-19 by providing emergency support and liquidity solutions to companies of all sizes and in all sectors of the Canadian economy.
  • EDC worked with Canadian financial institutions to quickly and effectively make capital available for Canadian small businesses through the Canada Emergency Business Account (CEBA).
  • Since the beginning of the pandemic, over $49 billion in support has been provided to almost 900,000 Canadian small businesses through CEBA.

Supplementary Messages:

  • CEBA closed to new applications on June 30, 2021.
  • The government will continue to work with EDC to ensure that Canadian businesses receive the support they need through the pandemic.
  • Recognizing the ongoing challenges faced by businesses, the repayment deadline for partial forgiveness of CEBA loans was extended by 12 months to offer greater repayment flexibility.

Update
On January 12, 2022, the Deputy Prime Minister and Minister for International Trade announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness was extended from December 21, 2022 to December 31, 2023 for all eligible borrowers in good standing.
Supporting facts and figures

  • EDC is administering the Government's CEBA program under the Canada Account.
  • CEBA provided interest-free loans of up to $60,000 (up to $20,000 forgivable) to small businesses and not-for-profits.

Background:
EDC is Canada's export credit agency with a mandate to support and develop, directly or indirectly, Canada's export trade. The day-to-day operations of EDC are at arm's length from the Government. EDC is governed by a Chair and Board of Directors responsible for implementing direction provided by the Minister for International Trade. At the beginning of March 2020, EDC was provided with increased capitalization and domestic authorities to support Canadian businesses and combat the economic impacts of COVID-19. Subsequently, EDC was directed to undertake the administration of the Government's CEBA program. EDC has also supported the pandemic recovery effort under its Corporate Account through programs such as the Business Credit Availability Program.
Robust reporting guidance from the Minister to EDC has been implemented which seeks to ensure that EDC's support to Canadian companies is effective and addresses gaps that have arisen in the market due to the impact of COVID-19.

Economic Recovery

Key Messages:

  • The Government's top priority remains protecting the health and safety of Canadians.
  • The government aims to finish the fight against COVID-19 and ensure a robust economic recovery that brings all Canadians along.
  • This recovery will put people first, create jobs, grow the middle class, and ensure Canada's future will be healthier, more equitable, prosperous and greener.
  • For businesses, this includes a plan to break down barriers to full economic participation for all Canadians.

Supplementary Messages:

  • The Government of Canada will continue to support businesses in the most-affected sectors, such as tourism, arts and culture, and accelerate investment in digital transformation of small and medium-sized businesses.
  • The government will also work toward achieving inclusive economic participation – ensuring that growth is shared, and supports a diverse, skilled workforce prepared for jobs of the future.
  • The government will continue to invest in a greener recovery that fights climate change and builds a net-zero economy by supporting world-leading technologies that make industry cleaner.

Background:

Prior to the COVID-19 pandemic, Canada was doing well economically compared to its G7 counterparts, placing second in GDP growth and featuring historically low unemployment. The COVID-19 pandemic has created an unprecedented economic shock to the global and Canadian economies. While all sectors were affected, the impacts have been asymmetrical across sectors, regions and groups of workers.

There are signs of economic recovery in Canada. GDP returned close to its pre-pandemic level (99.6% of February 2020 output) in October 2021, and employment rose to surpass its pre-pandemic levels in September 2021, with certain areas still facing challenges. While most sectors are currently faring relatively well in terms of pre-pandemic output (e.g., retail trade (+5%), finance and insurance (+6%), and professional services (+4%) as of October 2021), the recovery remains protracted and fragile in some others (e.g. air transportation (-68%), arts, entertainment and recreation (-27%), and accommodation and food services (-13%) as of October 2021).

The recent emergence and spread of the Omicron variant is impacting the public health situation in Canada. Actions to mitigate its spread through lockdowns and other measures to protect public health, may further impact Canada's economy and its recover from the pandemic.

Given the general state of the economy, the government is moving to more targeted support, while extending support for industries that continue to struggle. As such, three targeted programs streams were introduced last fall:

  • The Tourism and Hospitality Recovery Program (THRP) will provide both rent and wage subsidies, similar to the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS), with a maximum rate of 75 per cent for businesses in selected tourism and hospitality industries that have been particularly affected by the pandemic and continue to struggle. Eligibility requirement qualifications for this program are an average monthly revenue reduction of at least 40 per cent between March 2020 and February 2021, and a current-month revenue loss of at least 40 per cent.
  • The Hardest-Hit Business Recovery Program (HHBRP) will provide similar support as the THRP, with a maximum rate of 50 per cent, for those industries that are not included in the eligible industries' list, but which have nonetheless experienced significant hardship. Eligibility requirements for this program are an average monthly revenue reduction of at least 50 per cent between March 2020 and February 2021, and a current-month revenue loss of at least 50 per cent.
  • The Local Lockdown Program will provide businesses that face temporary new local lockdowns up to the maximum amount available through the wage and rent subsidy programs. In December 2021, eligibility was expanded to include employers subject to capacity-limiting restrictions of 50 per cent or more; and the current-month revenue decline threshold requirement was reduced from 40 per cent to 25 per cent.
  • These programs are set to run from October 24, 2021 to May 7, 2022. From March 13, 2022 to May 7, 2022, the subsidy rates will decrease by half.

As well, the repayment deadline for partial forgiveness on loans through the Canada Emergency Business Account (CEBA) has been extended from December 31, 2022 to December 31, 2023.

The government in the last mandate provided unprecedented support to Canadian workers and businesses to meet their immediate liquidity needs due to COVID-19. Canada's response, including through Budget 2021, has been one of the largest and fastest among G7 countries. This is in addition to supports for Canadians and Canadian workers who were most affected by the pandemic mitigation measures. Budget 2021 includes, for instance:

  • $250 million over three years, starting in 2021–22, for proven industry-led, third-party approaches to upskill and redeploy workers to meet the needs of growing industries. This initiative will help approximately 15,500 Canadians connect with new work opportunities.
  • Support to SMEs to pivot their business delivery online through investments like the $57 million for Digital Main Street. By working with provincial and industry partners to develop practical, on-the-ground solutions, we can ensure that small business in Canada is future-proofing their delivery in order to prosper in the digital economy and lead the way for a connected economic recovery.
  • Additionally, Budget 2021 initiatives will support small and medium-sized businesses with up to $101.4 million over five years, starting in 2021-2022, for the Small Business and Entrepreneurship Development Program. It also proposed several transformative programs, such as:
  • A new Canada Digital Adoption Program to assist over 160,000 businesses with the cost of new technology. It represents $1.4 billion over four years, starting in 2021-2022, to provide businesses with advice to get the most of new technology with the help of 28,000 young Canadians who will be trained to work with them.
  • Allowing Canadian small businesses to fully expense up to $1.5 million in capital investments in a broad range of assets, including digital technology and intellectual property. This represents an additional $2.2 billion investment in the growth of Canada's entrepreneurs over the next five years.

Moving forward, priorities will be to continue following through on Budget 2021 initiatives and pursuing additional measures to support Canada's economic recovery and growth, consistent with the mandate letter of the Minister of Innovation, Science and Industry to, for example, continue to support the recovery, create jobs, improve the resilience of the Canadian economy against pandemic-type shocks, and achieve long-term economic growth and transition into a digital and low-carbon economy.

Mobilizing industry to fight COVID-19

Key Messages:

  • Throughout the COVID-19 pandemic, the Government of Canada has worked to ensure that Canadians have access to the resources needed to keep themselves healthy.
  • The government has worked with companies and industries to supply personal protective equipment (PPE) and medical devices. More than 6,500 individuals and businesses have offered to help, and many pivoted to producing PPE items needed by frontline healthcare workers and the general public.
  • There is now significant domestic PPE supply and a National Emergency Strategic Stockpile of medical items to meet the emergency needs of provinces and territories.

Supplementary Messages:

  • Over the course of its industry call to action, the government deployed all resources at its disposal to quickly establish reliable domestic supply chains, including through significant federal contracts, innovation programming, and business supports.
  • While the government has returned to competitive procurement processes, industry programming continues to be leveraged to support the development of next-generation healthcare commodities that can put Canada at the forefront of future healthcare needs.
  • The government will continue to support Canadians in ensuring they have access to the resources they need to safely navigate the pandemic.

Background:

On March 20, 2020, the Prime Minister issued a call to Canadian businesses and announced the creation of a plan to mobilize and support Canada's domestic manufacturing capacity to supply vital made-in-Canada protective gear and other medical equipment and devices needed to respond to COVID-19. Over 6,500 businesses and individuals responded to the call, offering their expertise and capacity. Each proposal was assessed on how it could support the urgent needs of Canadians and frontline healthcare workers. In addition, Canada's Innovation Superclusters tapped into their networks of more than 2,400 member companies to help develop and manufacture face shields, masks, and testing kits.

The government has also deployed industry and innovation programming, such as the National Research Council's (NRC) Industrial Research Program (IRAP), the Strategic Innovation Fund (SIF), Superclusters, and Innovative Solutions Canada (ISC), to support companies in rapidly scaling up their production capacity in Canada. This includes developing technologies that are environmentally sustainable and encouraging more inclusive products. For example, in 2021 the NRC and ISC launched new challenges to develop compostable materials for medical gloves and to manufacture transparent medical-grade masks. As of 2021, the federal government invested over $79 million in PPE innovation projects across multiple programs.

Canada now has ample domestic manufacturing capacity for a number of critical PPE products to help meet the needs of the public healthcare sector, with additional capacity available for the general market. The National Emergency Strategic Stockpile (NESS) has sufficient quantities of PPE to continue supporting provinces/territories with emergency needs on request.

Under Canada's procurement agreements with Canadian industrial suppliers of medical equipment to secure further PPE for healthcare workers, there are a number of notable success stories:

  • As of August 2020, Medicom officially opened its new manufacturing facility in Montreal, and began the production and delivery of domestically-produced surgical masks and, subsequently, respirators.
  • In April 2021, General Motors delivered their 10 millionth mask to the Government of Canada, going on to donate still more to local organizations across Canada.
  • The new 3M factory in Brockville, Ontario began the production and delivery of N95 respirators as of April 2021.
  • Tens of thousands of ventilators were developed and produced from scratch, providing Canada with secure access to a highly complex medical device that was in short supply.
  • Through competitive procurement in 2021, the government continued to support domestic manufacturers of surgical masks and medical gowns.

Venture Capital Catalyst Initiative

Key Messages:

  • Venture capital can help companies create game-changing innovations.
  • Announced in Budget 2021, the renewed Venture Capital (VC) Catalyst Initiative (VCCI) is making up to $450 million available to support new investments venture capital funds.
  • When leveraged with other investments, the next round of the VCCI is expected to raise over $1.5 billion.
  • All applicants under the VCCI will be required to demonstrate their support to advancing diversity in the Canadian VC ecosystem, including supporting more women fund managers and start-ups, as well as under-represented groups, regions and sectors of the economy.

Supplementary Messages:

  • The renewed VCCI will support additional investments in funds-of-funds, the life sciences sector, and in funds that support growth of diverse fund managers and start-ups.
  • Announced in Budget 2017 and extended through the 2018 Fall Economic Update, the Government of Canada invested $371 million in four national funds-of-funds and eight venture capital fund managers under the previous VCCI.
  • The managers selected under the previous VCCI collectively raised more than $1.8 billion from public and private investors, increasing the availability of capital for promising start-ups.
  • The Business Development Bank of Canada (BDC) is helping foster innovation in Canada by supporting the development of a vibrant venture capital (VC) ecosystem.
  • As Canada's most active single VC investor, the BDC has a venture capital portfolio of over $2.4 billion.

Background:

The government actively supports the development of Canadian venture capital (VC) through the Venture Capital Action Plan (VCAP) and Venture Capital Catalyst Initiative (VCCI). Both have the objective of increasing the amount of private sector capital in the Canadian VC market.

VCCI recipients were chosen through a rigorous selection process informed by a private sector Selection Committee of highly qualified industry experts. Many selected funds have reached their first or even their final closes and have begun investing, and negotiations continue with others.

The promotion of gender balance and diversity in the VC ecosystem was an important factor in the design of the VCCI. Support for VC funds that champion gender balance will not only help address existing imbalances but will also serve to strengthen Canada's VC ecosystem as a whole.

Official Languages – Minority Communities

Key Messages:

  • ISED has a strong commitment to supporting the vitality of Canada's official language minority communities (OLMCs), and has established mechanisms in place to ensure that the department fully complies with its obligations under Part VII of the Official Languages Act.
  • ISED administers an Economic Development Initiative fund that supports research and analysis by external stakeholders and community groups to advance the economic interests of official language minority communities, including conducting research and analysis on OLMCs.
  • ISED also organizes regular Dialogue Days (consultations) with official language stakeholders, ensuring regular outreach and engagement to understand community needs, raise awareness of ISED programming, and share best practices.

 

Supplementary Messages:

Under Part VII of the Official Languages Act (OLA), ISED has obligations with regards to economic development programs for Official Languages Minority Communities (OLMCs) and promoting linguistic duality. To that end, ISED fosters the participation of the OLMCs in relevant programs through several initiatives. These include dedicated consultations (e.g., multistakeholder Dialogue Days, and Follow-up Committees), a curated electronic bulletin (ISED Express) that disseminates information pertinent to OLMCs several times per year, and targeted webinars and workshops.

ISED also implements "positive measures" – mandated in the OLA – such as the Economic Development Initiative (EDI). The EDI is a $30.5M initiative over five years dedicated exclusively to supporting OLMCs. Jointly delivered with the Regional Development Agencies (RDAs), the main activity of the EDI is to administer financial contributions to eligible OLMC stakeholders in all regions of the country. ISED coordinates the EDI at the national level for reporting and evaluation purposes, and also disburses over $300K per year in research and analysis funds to OLMC recipients.

Futures Fund

Key Messages:

  • It is vital that we advance the goal of achieving a Just Transition and help ensure that workers and communities prosper as we move to net-zero emissions.
  • The Government of Canada will ensure that the new Futures Fund for Alberta, Saskatchewan and Newfoundland and Labrador supports local and regional economic diversification, sensitive to the specific needs of these communities and citizens.
  • We are continuing our work to get this program right, and I am committed to ensuring that this initiative works for all Canadians, including those in rural communities, and advances place-based strategies.

Supplementary Messages:

  • This government has a strong track record of successfully developing and implementing similar energy transition-related initiatives.
  • For example, the Regional Development Agencies have successfully developed and delivered the Canada Coal Transition Initiative (CCTI), which is supporting skills development for residents in coal-reliant areas and has funded local infrastructure to help affected communities adapt to a low-carbon economy.

Background:

In their mandate letters, Ministers Ng and Freeland have identical commitments to establish a Futures Fund to support economic diversification in communities in Alberta, Saskatchewan and Newfoundland and Labrador affected by economic disruptions and employment losses associated with the transition away from oil and gas production. Ministers Hutchings, Petitpas Taylor, Vandal, and Boissonnault are also identified as supporting Ministers.

In particular, the commitment states that in support of comprehensive action to achieve a Just Transition, and to help ensure that workers and communities prosper as we move to net-zero, the Government of Canada will work to establish a Futures Fund for Alberta, Saskatchewan and Newfoundland and Labrador that will support local and regional economic diversification and place-based strategies.

A "Just Transition" to a net-zero carbon economy involves:

  • preparing the workforce to fully participate in the low-carbon economy while minimizing the impacts of labour market transitions;
  • identifying and supporting inclusive economic opportunities to support workers in their communities; and
  • including workers and their communities in discussions that affect their livelihoods.

Regional development agencies coordination

Key messages:

  • Regular meetings are happening with all Ministers responsible for the Regional Development Agencies to ensure we are sharing best practices and leveraging expertise and capabilities and working together towards our common goal: A strong economy across all of Canada's regions.
  • We have a long record of collaboration with the RDAs, and we will continue to work together towards a strong economic recovery and long-term economic development.

Strengthening regional capacity

Key Messages:

  • As Canada continues to build back better, no community is being left behind. From the outset of the pandemic, regional development agencies have been on the ground across Canada, helping businesses weather the effects of the pandemic.
  • Through the $2 billion Regional Relief and Recovery Fund, regional development agencies have provided liquidity to businesses to help them face the economic hardship and preserve 156,000 jobs.
  • As regional economies emerge from the pandemic, regional development agencies have shifted their focus from pandemic response to economic recovery, including delivering over $2 billion through a series of recently launched initiatives from Budget 2021.
  • These initiatives are focused on driving a diverse and inclusive recovery, and supporting hard-hit sectors, businesses and communities.

Supplementary Messages:

  • To ensure businesses and communities in every corner of Canada have the support they need to get through the pandemic and that they are brought along in our economic recovery, Budget 2021 provided RDAs with over $2 billion in funding to support hard-hit sectors, businesses and communities. These initiatives include:
  • The $700 million Jobs and Growth Fund to help create jobs, support inclusive and clean growth, and lift up struggling businesses and communities;
  • The $500 million Canada Community Revitalization Fund to support communities, towns and cities as they invest in infrastructure that will assist with community vitality, support social and economic cohesion and help reanimate communities;
  • The $500 million Tourism Relief Fund to help tourism entities strategically adapt their products and services to adjust to public health requirements, while planning for, and investing in, recovery efforts for future growth;
  • The $250 million Aerospace Regional Recovery Initiative to support projects aimed at maintaining and enhancing innovation, productivity, and competitiveness of aerospace SMEs; and
  • The $200 million Major Festivals and Events Support Initiative to offer financial support to Canada's major festivals and flagship events to mitigate possible closure, offer alternate activities in light of constraints imposed by the pandemic, and position themselves for the future.
  • Recognizing the RDAs' ability and success in delivering funds quickly and effectively throughout the pandemic, the budget also put forth a number of important opportunities for RDAs to build on this potential, including, among others:
  • An additional $51.7 million over four years, starting in 2021-22, to Innovation, Science and Economic Development Canada and the regional development agencies for the Black Entrepreneurship Program.
  • Budget 2021 also enabled the creation of a new regional development agency for British Columbia – Pacific Economic Development Canada – with a budget of $553.1 million over five years and $110.6 million ongoing to ensure businesses in B.C. can continue to grow and create good jobs for British Columbians.
  • Existing core program funding from the former Western Economic Diversification – now Prairies Economic Development Canada – also remains in place to support the Prairies, making additional support available for businesses in Alberta, Saskatchewan, and Manitoba.
  • Budget 2021 also enabled FedNor to become a standalone regional development agency to help further strengthen the economic development of Northern Ontario.

Background:

Canada's regional development agencies (RDAs) are the front line for economic development in Canada and are instrumental in addressing key economic challenges by providing regionally tailored programs, services, knowledge and expertise.
RDA programs foster the right environment to enable businesses to grow and entrepreneurs and innovators to start businesses, creating the ideal conditions for the development of strong, dynamic and inclusive regional economies throughout the country.
Regional Development Agencies support regional innovation ecosystems and help businesses scale up by:

  • Delivering nationally coordinated programs tailored to fit regional needs and circumstances
  • Providing access to financial assistance
  • Bringing together key players in their respective ecosystems
  • Supporting community economic development
  • Ensuring that regional growth strategies eliminate regional gaps and align with federal government objectives

COVID supports administered through the RDAs
The following COVID 19 supports are being administered by the RDAs:

  • The Regional Relief and Recovery Fund (RRRF) has provided over $2 billion in assistance to businesses and communities that may require additional support to cope with and recover from the pandemic. It has provided liquidity to businesses, helping bridge them to the recovery, and preserved 156,000 jobs.

The fund has helped:

  • mitigate the financial pressure experienced by businesses and organizations to allow them to continue their operations, including paying their employees; and
  • support projects by businesses, organizations and communities to prepare now for a successful recovery.
  • The Regional Air Transportation Initiative (RATI) is providing $206 million to eligible regional businesses and airports that directly contribute to regional air transportation. RATI has been designed to help ensure that regional air connectivity and services, which are critical to economic growth, are maintained and regional routes are re‑connected across the country. The fund is being delivered by Canada's seven RDAs.
  • The Canadian Seafood Stabilization Fund, a $62.5 million fund delivered directly through the Atlantic Canada Opportunities Agency, Prairies Economic Development Canada, Pacific Economic Development Canada and the Canada Economic Development for Quebec Regions

It is helping businesses access short-term financing to:

  • increase storage capacity, and find storage solutions for unsold product
  • adapt plant operations, and invest in equipment, services and materials to address challenges associated with COVID-19
  • respond to changing markets and consumer needs

Leveraging RDA capacity and building on important work
RDA COVID-19 programs have complemented other Government of Canada supports, including the Canada Emergency Business Account (CEBA) and the Canada Emergency Rent Subsidy (CERS), which were made available to help Canadian businesses survive the impacts of the pandemic and positioned them for eventual economic recovery.

Pacific Economic development Canada

Key Messages:

  • Canada's West is diverse, and British Columbia (BC) has a distinct economy with unique strengths and challenges. PacifiCan is an investment in the economic future of British Columbians. An investment that recognizes that businesses, innovators, and communities have unique needs linked to where they are located.
  • Budget 2021 provided $553.1 million over five years, starting in 2021-22, and $110.6 million on an ongoing basis for the new Agency.
  • On August 5, 2021, the transition of Western Economic Diversification (WD) to two new regional development agencies – Pacific Economic Development Agency (PacifiCan) and Prairies Economic Development Agency (PrairiesCan) - was formally announced.
  • PacifiCan will be headquartered in Surrey, while continuing to have an office in Vancouver. Additional service locations will be established in Victoria, Kelowna, Prince George, Surrey, Cranbrook, Fort St. John, Prince Rupert and Campbell River. The agency will also have an office in Ottawa.
  • When complete, this enhanced on-the-ground presence will bring the federal government closer to BC's diverse businesses and communities.

Supplementary Messages:

  • Establishing a BC regional economic development agency with new dedicated funding will help businesses and communities continue to grow and create good jobs across the province.
  • The establishment of PacifiCan and PrairiesCan will improve the ability to tailor service offerings to local needs, allowing for targeted supports across the west.
  • An enhanced on-the-ground presence enables both new agencies to build a more focused, locally informed federal approach to economic development initiatives and build on important gains in those regions. These changes will encourage business growth and community resilience as the new agencies plays stronger roles as convenor, pathfinder, investor, and advisor.

Background:

In recognition of the unique economic realities in British Columbia and across Western Canada, the government committed, in the 2020 Fall Economic Statement, to create a new regional economic development agency for British Columbia with new dedicated funding.

Existing core program funding from Western Economic Diversification will remain to support the Prairies, making additional support available for businesses in Alberta, Saskatchewan, and Manitoba.

FedNor

Key Messages:

  • The Federal Economic Development Agency for Northern Ontario (FedNor) is the key federal partner in regional economic development in Northern Ontario.
  • First created as a federal initiative in 1987 with a mandate to assist in the expansion and diversification of the economy of Northern Ontario, FedNor was established as a stand alone Regional Development Agency (RDA) on August 12, 2021, confirming the importance of its role.
  • The creation of FedNor as an RDA responds to a need identified by Northern Ontario community and business leaders over the years.
  • Through its programs and services and with the ability to finance projects that lead to job creation and economic growth, FedNor works with businesses, organizations and community partners to build a stronger Northern Ontario.
  • While continuing to support the long-term growth of Northern Ontario's economy, FedNor is also implementing several measures to help businesses, organizations and communities affected by the economic impacts of the pandemic, supporting them towards recovery.

Supplementary Messages:

  • Present throughout Northern Ontario with six business offices, FedNor also plays a key integrating and networking role that allows it to bring together the right partners around a project.
  • By working in partnership will the province and key stakeholders, FedNor supports regional economic development, innovation, the growth of SMEs and the vitality of Northern Ontario communities.

Background:

Since 1987, FedNor has served as the federal economic development organization for Northern Ontario. The Federal Economic Development Agency for Northern Ontario (FedNor) was formally established through Orders in Council on August 12, 2021.

As part of Canada's COVID-19 Economic Response Plan, FedNor delivered programs such as the Regional Relief and Recovery Fund to support businesses and organizations impacted by the pandemic.

In addition to its regular programming, FedNor is also delivering four additional programs that will inject nearly $83 million in new funding into the region over the next few years. These new programs were launched earlier this summer and include the Canada Community Revitalization Fund, Tourism Relief Fund, Jobs and Growth Fund and the Aerospace Regional Recovery Initiative.

Securing supply chains

Key Messages:

  • The government is committed to strengthening the country's supply chains to enhance the timely movement of goods and materials, while building a more resilient economy.
  • The Government of Canada's top priority remains protecting Canadians' health and safety.
  • The government understands that the current supply chain issues have an impact in all sectors of the economy and affects Canadians in their everyday lives.
  • The government is also working closely with the United States and global partners to enhance supply chain security for key commodities.
  • These include industries such as critical minerals, batteries and semiconductors, as well as sectors such as life sciences, manufacturing, transportation and defence.

Supplementary Messages:

  • The Government of Canada and the private sector must work together to shape the country's long-term supply chain strategies.
  • The government is engaging Canadian businesses to understand their opportunities and challenges, and support them in developing strategies to address potential future disruptions, such as supply and procurement diversification.
  • As the last 20 months have demonstrated, Canada's manufacturing base is instrumental in responding to supply chain disruptions.
  • That is why the government will continue to work with industry partners to address labour shortages and skill gaps, particularly in skilled trades. Increasing workforce participation by underrepresented groups will help expand workforce capacity and fill supply chain gaps.
  • The government will also look to support meaningful investments in supply chain innovation, to extract new economic and social value from how they are structured and improve supply chain resiliency.
  • The government will also take stock of critical domestic manufacturing and supply capabilities which will inform its approach to growth and security coming out of the pandemic.

Background:

Prior to the COVID pandemic, the world economy experienced periods of intense and rapid globalization.
Beginning around 2008, several important new dynamics in geopolitics and the global economy began factoring into trade. The rise of protectionism, political volatility stemming from income inequality, and trade dynamics between China and the United States, and China and the rest of the world indicated there was decline in world trade growth.

The COVID-19 pandemic has resulted in disruptions in production and shipping across a number of commodities and manufactured products, drastically impacting global supply chains and resulting in shortages across a number of critical sectors. COVID-19, unfortunately, also accelerated the movement by many nations to further advance protectionist measures. The causes of supply chain disruptions during the pandemic are varied and factors affecting shortages are often unique to each commodity or industrial sector. The combined facets of supply chain shortages and disruptions are contributing to inflationary pressures in some commodities or manufactured goods. While the International Monetary Fund has forecast growth for Canada, it will be restrained, in part by supply chain issues, where demand continues to outstrip supply in some areas.

The current supply chains situation builds on strains that were present in the Canadian economy before the onset of the COVID-19 pandemic. Most notably, vulnerabilities in rail as experienced during blockades of early 2020 impacted manufacturing industries, retailers and consumers. Further, Canada's reliance on Asian imports in areas such as active pharmaceutical ingredients and critical minerals and rare earth elements, has highlighted structural issues Canada faces, demonstrating the need to diversify supply and trade bases. Labour shortages and skills gaps have also been identified by industry as persistent issues and, if not addressed, will limit Canada's ability to pivot to increasing domestic manufacturing capacity and attract foreign investment.

The pandemic is expected to persist for several more years. As of early January 2022, certain key sectors have either begun reporting or expect further supply chain disruptions, stemming from the spread of the Omicron variant and resulting labour shortages. The latest wave of the pandemic is expected to effect both domestic and global operations, with impacts on employee absenteeism, production, and transportation. Canada's approach to supply chains will require new analysis to inform the measures that could be taken to mitigate possible additional economic and supply chains shocks, and to identify priority areas for Canada to build new or additional domestic manufacturing capacity to serve foreign and domestic markets.

The Government of Canada is pursuing actions to respond to the current situation, and to build stronger supply chains to support future economic resiliency.

Under the Roadmap for a Renewed US-Canada Partnership, Canada and the US have identified several sectors and issues to focus on to foster economic recovery and joint economic security. Coordinated by Global Affairs Canada and Innovation, Science and Economic Development Canada, a number of departments are developing projects to advance supply chain resiliency in critical minerals, electric vehicles, semiconductors, life sciences, defence, regulatory cooperation and transportation. Canada is also working towards communicating its position as a secure and reliable source for supply inputs, seeking greater regulatory cooperation to encourage alignment in industrial and trade policies, and advocating for open trade. There have also been preliminary discussions to explore potential opportunities for supply chain collaboration with other trusted partners in Europe and North America. These initiatives will lay the groundwork for building stronger supply chains that can support Canada's economic recovery.

Further, Transport Canada (TC) held a National Supply Chain Summit on January 31, 2022. The Summit initiated a dialogue into Canada's supply chain challenges, and identified early strategies and concrete next steps for action, as well as how to reinforce supply chain efficiency and resiliency in the longer-term. Attendance included industry stakeholders, as well as government officials.

Canada – U.S. Trade promotion

Key messages:

  • The U.S. is a priority trade promotion market, and the Trade Commissioner Service delivers a range of trade promotion programs to help Canadian businesses grow.
  • TCS trade promotion programs focus support on SMEs, under-represented exporters and high potential clients.
  • Investment attraction and innovation partnerships are supported by investment outreach and retention efforts, as well as innovation programs.

Supplementary Messages:

  • Relying on a network of the Embassy in Washington, D.C., twelve consulates general and three trade offices, the TCS in the U.S. delivers a range of client-facing programs to secure market access and reinforce integrated supply chains.
  • 28% of all TCS clients during 2020-2021 received a service delivered by a TCS post in the US. The number of services delivered by posts in the US increased from 6499 services in 2019-20 to 8325 services in 2020-21 (a 28% increase).
  • The U.S. market is home to the largest number of TCS clients reporting Economic Outcomes Facilitated (EOFs) with 245 (delivered to 154 clients), versus 101 for the next market, China, and 211, for Europe.
  • Program funding for exporters comes from CanExport for SMEs and CanExport Innovation for technology partnerships and associations.
  • The Canadian Technology Accelerator (CTA) program supports high-potential, high-growth Canadian technology start-ups by offering them business opportunities and introductions to potential investors, buyers and partners in four U.S markets (New York, Boston, Palo Alto and San Francisco).
  • A network of Investment officers works with the wider TCS trade promotion team on FDI retention and attraction, focusing on Fortune 500 global entities.
  • The U.S. market offers significant potential for underrepresented exporters, which the TCS leverages through initiatives including group-specific business delegations that help companies access supplier diversity corporate opportunities and women in Tech cohorts hosted by US based Canadian Technology Accelerator (CTA) cohorts.

Supporting facts and figures:

Canada and the United States enjoy the largest trading relationship in the world. Every day nearly US$2 billion worth of goods and services crosses the Canada-U.S. border.

In 2020, Canada was the U.S.' largest destination for goods and services exports (14.5%), second largest source of imports (11%), third largest source of inward FDI (11%) and fourth largest destination for outward U.S. FDI (7%).
At the sub-national level, 32 states count Canada as their top customer and 20 states rely on Canada as their top source country for imports.

The Canada-U.S. trade and investment relationship is built on long-standing binational supply chains. 76% of U.S. imports from Canada are related to supply chains and are used for domestic U.S. production. Canadian goods exports contain on average 20% U.S. content and, in some sectors like machinery and automobiles, it is significantly higher.
CanExport SMEs has approved more than $73.5 million in funding for 2332 projects targeting the U.S. since 2016 (over $10.4 million in funding for 459 projects in 2021-22).

Foreign Direct Investment(FDI)

Key Messages:

  • Continue to advance foreign investment attraction measures that position Canada as a top destination for global investment and promote our economic brand, while balancing Canada's national interests.
  • Foreign Direct Investment (FDI) is vital to Canada's economic recovery.

Supplementary Messages:

  • FDI attraction efforts are aligned with wider government economic strategies including the ISED-led Innovation Superclusters Initiative, the Mines to Mobility strategy, our critical minerals strategy and others.
  • Processes to fill the Invest in Canada Chairperson, Board Directors, and CEO positions have been launched and are expected to be completed this year.
  • Canada balances its national interests while advancing FDI attraction chiefly through the administration of the Investment Canada Act.

Update:

  • Coordination efforts across the government supported by a DG-level Executive Coordination and Oversight Committee on FDI co-chaired by Global Affairs Canada (GAC) and Invest in Canada (IIC), as well as an ADM Committee on FDI, which recently met on January 20, 2022.

Supporting facts and figures:

  • FDI inflows to Canada contracted 53% in 2020, however, the latest quarterly report from Statistics Canada demonstrates that global companies are increasing their investments in Canada.
  • Statistics Canada reports FDI inflows totalled $20.6 billion into Canada for the third quarter (Q3) of 2021, which is 66.0% higher than the 10-year quarterly average of $12.4 billion. Year-to-date FDI inflows through Q3 2021 are at $56.8 billion, surpassing the total for the full year of 2020 by more than 80%.
  • The TCS, through the CanExport Community Investments program, provides $4 million (2021) in financial support to Canadian communities to attract, retain, and expand FDI.
  • During FY2020-21, the TCS facilitated 121 investments representing a value of more than $2.1B and creating 6,366 new jobs. Based on preliminary results for FY2021-22, the TCS has facilitated 64 investments with a value of over $1B, creating approximately 2,300 jobs.
  • During FY2020-21, IIC facilitated 24 investments representing an expected value of $2.1B and anticipated creation of 2,609 jobs. Based on current results for FY2021-22, IIC has facilitated 41 investments with an expected investment value of over $19B, and anticipated creation of approximately 5,000 jobs.

Background:

  • GAC and IIC share the mandate to promote FDI into Canada and work closely together to exchange information, support investors and coordinate with other key partners to attract FDI including key departments such as ISED, AAFC, NRCan as well as partners at the provincial and municipal levels.
  • GAC manages a network of 44 investment officers abroad and is often the first point of contact for potential investors. IIC has a footprint of six regional offices across Canada working closely with FDI partners in coordinating FDI activities.
  • GAC supports ISED and Public Safety in the ongoing administration of the Investment Canada Act's national security provisions which address foreign investment that could be injurious to Canada's national security.

Business, Economic and Trade Recovery (BETR)

Key Messages:

  • The BETR Committee was established to foster greater coordination and collaboration among partner organizations in the trade portfolio.
  • Its objective is to maximize the impact of services provided to Canadian business during the economic recovery period.
  • BETR is currently focused on three cross-cutting initiatives: Infrastructure in Asia, AgTech / AgriFood, and HealthTech.

Supplementary Messages:

  • BETR has nurtured a strong collaboration amongst the portfolio partners, with the ultimate beneficiary being the Canadian companies we serve.
  • BETR focuses on initiatives where we can generate benefit for Canadian business, and by extension, for Canada.
  • BETR continues to seek new areas of collaboration where portfolio partners can leverage their capabilities and expertise to create incremental impact.

Supporting facts and figures:

  • The BETR Committee is comprised of representatives from the Trade Commissioner Service, Export Development Canada, the Business Development Bank of Canada, the Canadian Commercial Corporation, Innovation, Science, and Economic Development Canada, Invest in Canada, and the National Research Council of Canada's Industrial Research Assistance Program.
  • Participating organizations made 1758 referrals to other BETR partners between July 2020 and December 2021.
  • Using a Trade Team Canada approach, the TCS, CCC, and EDC are currently working with 13 Canadian infrastructure firms in pursuing 8 opportunities in Indonesia, the Philippines, and Thailand that were presented during a Team Canada Southeast Asia Infrastructure Forum in June 2021.
  • The EDC-led AgTech / AgriFood stream has served 19 Canadian companies since launching the Protein Industries Canada Roundtable held in June 2021 and the Atlantic Seafood Roundtable held in November 2021.
  • To date, 25 Canadian companies have been nominated to the HealthTech stream's Accelerated Growth Service.

Background:

BETR was established as an outcome from a meeting between MINT and portfolio partners on July 13 2020 and comprises leadership of the trade portfolio (TCS, EDC, BDC, CCC, IiC, ISED, and NRC IRAP).

The work of the BETR committee is targeted to be client-focused, builds upon success in areas of existing collaboration, and build upon a pipeline of short, medium, and long-term initiatives.

Three sectors – Infrastructure in Asia (led by TCS & CCC), AgriTech & AgriFood (led by EDC), and HealthTech (led by BDC and ISED) were identified for focused collaboration. Working groups from these three sectors have since carried out several programs in support of Canadian business.

The BETR Committee is continuing to seek ways of further enhancing cross-collaboration between trade portfolio partners.

Open and rules – based trade regimes

Key messages:

  • People, businesses and the economy benefit from the stability, predictability, and access to international markets provided by Canada's membership in the World Trade Organization (WTO), and other multilateral fora, such as G7, G20, OECD, and APEC.
  • Canada is committed to safeguarding the rules-based multilateral trading system – with the WTO at its core – and is at the forefront in providing global leadership on the urgent need to reform the WTO, including through the Ottawa Group.
  • Canada's reform priorities include safeguarding a binding and enforceable two-stage dispute settlement system, and achieving progress in ongoing negotiations to ensure that WTO rules address 21st century realities.

Supporting facts and figures:

Current Ottawa Group members (14) are Australia, Brazil, Canada, Chile, the EU, Japan, Kenya, Korea, Mexico, New Zealand, Norway, Switzerland, Singapore and the UK.

Background:

Canada is exercising global leadership on WTO reform. This includes leading the Ottawa Group – a group of 14 likeminded WTO members created in 2018 with the objective of supporting WTO reform efforts, such as to improve the efficiency and effectiveness of the WTO; safeguarding and strengthening the dispute settlement system; and reinvigorating the WTO's negotiating function.

The Ottawa Group plays a key role in being an effective sounding board identifying and developing ideas and proposals that could garner the broadest support by the WTO membership. By virtue of its diverse and representative membership, the Ottawa Group is in a unique position to help deliver the pragmatic and creative leadership that the WTO requires. Throughout the pandemic, the group's efforts to carve out a role for the WTO in adapting to emerging issues demonstrate that it can be a useful forum.

Key accomplishments include the June 2020 Ottawa Group Ministers Joint Statement Focussing Action on COVID-19, where members committed to a work plan to address the trade-related impacts of COVID-19, foster global economic recovery, and be prepared to respond to similar crises in the future. It also played a key role in spurring discussions leading to the eventual Multi-Party Interim Appeal-Arbitration Arrangement (MPIA), an interim solution to safeguard our rights to binding dispute settlement with other participating WTO Members pending a more permanent solution to the Appellate Body impasse. Canada is also active in negotiations related to fisheries subsidies, and agriculture; actively participate in plurilateral negotiations to develop new rules on e-commerce, investment facilitation for development, and in ensuring the WTO work incorporates emerging issues, such as trade and gender, and trade and environmental sustainability.

Canada also works to promote open and rules based trade regimes through its engagement in other international fora, including APEC, the G7, G20, and OECD. Across these fora, Trade and Investment Ministers met eight times in 2021, to reinforce their commitment to a strong, rules-based, multilateral trading system, address ongoing challenges posed by the pandemic, and to chart a path forward for a more robust, inclusive and sustainable recovery.

World Trade Organization TRIPS Agreement waiver proposal

Key Messages:

  • The Government of Canada has always been, and always will be, a strong advocate for vaccine equity.
  • On intellectual property (IP), Canada remains committed to finding solutions and reaching an agreement that accelerates global vaccine production and does not negatively impact public health.
  • Canada continues to work closely with all WTO Members in seeking a consensus-based outcome to any IP challenges related to the pandemic, including in respect of a waiver for COVID-19 vaccines.

Supplementary Messages:

  • Canada can support a consensus-based, multilateral outcome on the TRIPS waiver.
  • The Government of Canada also recognizes that the global access to, and distribution of, COVID-19 vaccines is informed by a broad range of factors beyond IP, including supply-chain and distribution challenges.
  • Canada is actively working with international partners and other WTO Members, notably by leading the WTO Ottawa Group, to address supply chain constraints and export restrictions under the WTO Declaration on Trade and Health.
  • Canada is actively involved in a range of international initiatives, including as a leading donor to the Access to COVID-19 Tools Accelerator and its vaccines pillar, the COVAX Facility, and has committed to donating the equivalent of 200 million doses to the COVAX Facility by the end of 2022.

Update:

WTO Members continue to discuss proposals for a COVID-19-related waiver from the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), in both plenary and small-group meetings. The WTO TRIPS Council last met on December 16, 2021 to update on these discussions, and agreed to keep the TRIPS Council open for further informal discussions in early-2022, in addition to the next, formally-scheduled TRIPS Council meeting on March 8-9, 2022.

Supporting facts and figures:

  • In June 2021, the WTO TRIPS Council agreed to undertake text-based negotiations on the basis of a revised TRIPS waiver proposal (IP/C/W/669/Rev.1), which has been co-sponsored more than 60 WTO Members, including India, South Africa, the African Group and the Group of Least-Developed Countries.
  • The TRIPS Council also continues to discuss a proposed EU declaration on legal certainty around existing TRIPS compulsory patent licensing flexibilities and the pandemic (IP/C/W/681).
  • In parallel with WTO discussions on TRIPS, Canada is actively pursuing a range of critical near-term solutions that support broader access to COVID-19 vaccines and therapies.
  • Canada remains actively committed to the WTO Declaration on Trade and Health (WT/GC/W/823), which has been co-sponsored by 33 WTO Members, and which addresses challenges related to supply chain constraints and export restrictions, all of which delay or curtail access to COVID-19 vaccines.
  • Canada has committed $1.3 billion to the Access to COVID-19 Tools Accelerator to ensure access to equitable medical interventions by low- and middle-income countries.
  • Canada has committed to donating the equivalent of 200 million doses to the COVAX Facility by the end of 2022, which includes over 50 million doses deemed surplus from Canada's domestic procurement, financial contributions to COVAX in support of the procurement of 87 million doses, and potential future donations and financial contributions.
  • To date, through financial contributions and donated surplus doses, Canada has made available the equivalent of approximately 100 million doses via COVAX.