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Japan, EU file cross-appeals in WTO case on Ontario's feed-in tariff

Ontario's domestic content requirement requires that developers of PV systems which participate in the province's feed-in tariff source 60% or more of their equipment in the province
Ontario's domestic content requirement requires that developers of PV systems which participate in the province's feed-in tariff source 60% or more of their equipment in the province

On February 11th, 2013 Japan and the EU both filed cross appeals to Canada's appeal of a World Trade Organization (WTO) ruling against Ontario's domestic content requirement in its feed-in tariff.

Canada filed its appeal on February 5th, 2013. On December 19th, 2012 a WTO panel agreed with Japan and the EU that the policy violated Global Agreement on Trade and Tariffs (GATT) and Agreement on Trade Related Investment Measures rules.

 

Canada ordered to compel Ontario to comply

The WTO has ruled that Canada, as a signatory, must compel Ontario to comply with the ruling. The Canadian government has noted that this is the first time that it has received a WTO panel ruling due to a provincial policy, and as such is appealing as requested by Ontario.

Ontario's domestic content policy requires that developers of solar photovoltaic (PV) systems which participate in the province's feed-in tariff source 60% or more of their equipment in Ontario. 25% local content is required of participating wind generation.

 

Local content played both ways in France

Though the EU opposes domestic content requirements in Canada, France has introduced a 10% bonus for EU-made PV modules in its feed-in tariff. French Minister of Energy, Ecology and Sustainable Development Delphine Batho admitted in January 2013 that France may be challenged through the WTO on the bonus, but noted that this process will take years.

 

 

 

2013-02-18 | Courtesy: WTO; Image: Recurrent Energy | solarserver.com © Heindl Server GmbH

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