Business Subsidies

TILMA prohibits 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 another government or to prevent businesses in the British Columbia-Alberta region from being put at a disadvantage.

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 may be exempt, provided they

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