WTO local-content ruling could shake Ontario and beyond

The World Trade Organisation (WTO) appears poised to rule that the local-content requirements included in Ontario’s feed-in tariff violate international trade law, in a judgment that could hold major consequences for the global renewables sector.

The International Centre for Trade and Sustainable Development, a Geneva-based non-governmental organisation, claims to have obtained a leaked “interim report” in which a WTO adjudication panel agrees with the EU and Japan that Ontario’s local-content requirement is not permissible.

The report apparently falls short of judging Canada of engaging in “illegal subsidies”, however.

The final WTO ruling on the matter is not expected until next month, after which time Canada would be able to appeal. Experts say that in most instances such interim reports reflect the final thrust of the ruling.

As…

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