Business Subsidies

The NWPTA prohibits the four governments from providing business subsidies that offer a competitive advantage, induce the relocation of businesses or distort investment decisions. However, subsidies can be used to offset a subsidy offered by a government that is not party to the NWPTA.

Governments will still be able to provide subsidy and assistance programs that:

• Compensate for losses suffered as a result of calamities, such as forest fires or natural disasters.
• Assist book and magazine publishers, sound recording or film development, production and distribution.
• Assist recreation programs.
• Support academic research.
• Support non-profit organizations.

In addition, regional economic development initiatives are exempt, provided they:

• Do not restrict trade more than necessary.
• Do not unduly harm the economic interests of persons, goods, services or investments in another Party.
• Minimize discriminatory effects and impacts on trade, investment and labour mobility.
• Are consistent with the NWPTA restrictions on business subsidies.