Brussels, 07/05/2103 (Agence Europe) - The appellate body has confirmed the ruling of the dispute settlement panel on the complaints from the EU and Japan against Ontario's guaranteed feed-in tariff programmes.
On Monday 6 May, the WTO appellate body confirmed the rulings made on 19 December 2012 by the WTO dispute settlement panel on the complaints from Japan about certain measures from Canada affecting the renewable energy production sector (DS412) and from the EU about certain measures relating to the guaranteed feed-in tariff programme (DS426). The rulings criticise the guaranteed feed-in tariffs of the province of Ontario. The European Commission has welcomed this decision “which confirms the EU's claim that the discriminatory conditions in the support scheme for wind and solar power introduced by the Canadian Province of Ontario are in breach of WTO rules”. “The ruling is good news for everyone caring about clean energy and the environment. It has been made clear that use of quality, cost-effective technologies should not be hampered by protectionist measures”, said John Clancy, the spokesperson for European Commissioner for Trade Karel De Gucht.
The province of Ontario's support programme for renewable energies is discriminatory with regard to foreign suppliers of equipment for renewable energy production units, as it grants them less favourable treatment than that granted to similar products originating in Ontario. This provincial system of guaranteed feed-in tariffs for green energy - a system which was set up in 2009 - requires participating electricity generators to source up to 50% of the necessary equipment for wind energy generators, and up to 60% for solar energy generators, in Canada so as to benefit from government subsidies.
The Japanese complaint process was started in September 2010, and a special panel was set up in July 2011 after the failure of consultations with Canada (DS412). The EU also appealed to the WTO in August 2011, and a special panel was set up in January 2012, after the failure of consultations with Canada (DS426). The dispute settlement body gave its ruling on 19 December 2012. Under WTO rules, the appellate body's report will be adopted by the dispute settlement body within 30 days. Canada will then have to present its plan within a month for implementing the ruling. (EH/transl.fl)