Canada loses appeal over Ontario's FIT program

Trade - European Commission
Canada lost the appeal filed at the World Trade Organization (WTO) in a ruling that the local content requirement embedded within Ontario’s feed-in-tariff (FIT) program violates global trade rules.

The appeal was filed by the Canadian authorities at the WTO on February 5. The original ruling, published in December, supported claims made by Japan and the EU that the FIT program’s local content requirement unfairly discriminates against foreign companies.

After the ruling was published, Japan filed a cross appeal in the dispute involving “Canada – Renewable Energy” (WT/DS412), while the EU filed a cross appeal in the dispute involving “Canada – Feed-in Tariff Program” (WT/DS426). The Appellate Body report will have now to be adopted by the WTO Dispute Settlement Body within 30 days. Canada will have to present its plan to implement the ruling in the following months.

(...) Ontario’s local content requirement ensures that renewable energy installations built in Ontario only receive a FIT if 50 to 60 percent of the project’s equipment and services come from Ontario-based companies.