In both cases, filed by Japan and the European Union "Canada Certain Measures Affecting the Renewable Energy Generation Sector" (complaint by Japan, DS412); and "Canada Measures Relating to the Feed-in Tariff Program" (complaint by the European Union, DS426) the WTO affirms the accusations that Ontarios renewable energy FITs, which require 60% of equipment to come from locally made sources, breach the WTOs non-discrimination principle enshrined in the General Agreement on Tariffs and Trade (GATT) and the WTO Agreement on Trade-Related Investment Measures (TRIMS).
The claim that the FIT program also constitutes illegal subsidies has been rejected, however.
The WTO has, as such, recommended that Canada "bring its measures into conformity with its obligations under the TRIMs Agreement and the GATT 1994."
According to Bloomberg, Canadas federal government will appeal the decision. Kirby Dier, a spokeswoman for the Ontario Ministry of Energy told the news agency, "Our position has always been that the FIT program is consistent with Canadas obligations under the WTO agreements."
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