We have been active in Canada for years. Our corporation was founded 65 years ago. However, there have always been certain limits in Canada because our mandate is to support foreign trade. That means that we'll support a Canadian business, we will assist it to the extent that it has an export contract, to the extent it is involved in international trade.
As a result of the last budget, EDC has the option of temporarily supporting not only international trade, but also what is defined as domestic trade within Canada, to help fill the void—that Ms. Métivier described a little earlier—left by the financial institutions. We are able to provide temporary support for businesses in Canada doing business in Canada. EDC will support small and medium-size businesses through guarantee programs in partnership with the banks, to the extent that a financial institution believes in the business. The commercial point of view is important for BDC and EDC as well. We operate in accordance with business principles. In the opposite case, that is to say if the relationship between the risk and return were not at market levels, we might be a concern for the World Trade Organization because we would be providing a kind of subsidy to business. That's not part of EDC's mandate, or of BDC's mandate either. We will try to help the banks finance their clients internally.
You talked about forestry a little earlier. We can also provide assistance through our short-term insurance program. When a local business is active in the region, it is often part of a supply chain. That chain is often controlled or managed by major corporations. EDC will provide insurance or enable a business that sells to that major corporation to have protection through insurance so that that company can manage its risks. If I am an entrepreneur in the regions and I want to sell to a major paper maker, I can get insurance from EDC that will enable me to sleep at night because it will ensure that I'll be paid by that business.
As the risks increase within a given supply chain, demand for that kind of instrument increases as well. We've seen that in a number of sectors, including the automotive sector.