The Farther Regions of Canada

I'm trying to track down this notion that co-productions are exempt from the CanCon requirement that the story be set in Canada. My intern's careful reading of the Performance Guidelines reveals:

3.2.TV.1.1 Official Treaty Co-Productions

With respect to the eligibility of official treaty co-productions to access the CMF, these Essential Requirements shall be
interpreted so as to treat the treaty co-production partner as “Canadian.”

Accordingly, the terms “Canadian” and “Canadians” in Essential Requirements 1 and 3, and the term “Canada” in
Essential Requirement 4 will be deemed to include the co-production country. The 10/10 points referenced in Essential
Requirement 2 must be attained by citizens of Canada or the co-producing country.

Now I have to find out how, exactly, Irish co-productions like The Tudors or The Borgias can be set in England or Italy and still count.