Here's the latest WTO complaint, Canada - Certain Measures Affecting the Renewable Energy Generation Sector (DS412). It is yet another trade and clean energy dispute, which seem to be proliferating these days.
From the consultations request:
The measures that are the subject of this request are those taken by the Government of Canada or its provinces relating to the FIT Program established by the Canadian province of Ontario in 2009 providing for guaranteed, long-term pricing for the output of the renewable energy generation facility that contain a defined percentage of domestic content.
Here's a Toronto Globe and Mail article that discusses the case:
The centrepiece of Ontario’s energy plan is the subsidy plan that pays premium prices for power from wind, solar, small hydro and biomass. However, developers must procure a certain percentage of the required goods and services within the province.
South Korea-based Samsung Electronics Co. Ltd. has signed a $7-billion deal with the province to build four factories for wind and solar equipment, and provide up to 2,500 megawatts of premium-priced power.
Mr. Krenicki said some 30 U.S. states now have programs to require their utilities to purchase renewable power – and many of those have local preference policies. But he said the industry will never be competitive if each jurisdiction requires companies to build local manufacturing plants.
Trade lawyers say it will be difficult for Japan to win its WTO case, because the international trade agreements provide exemptions for government procurement and may not bind sub-national governments.
Quebec and other provinces also have local procurement rules under their various renewable energy plans.
We talked about some of these issues a while back. There was discussion there about the possibility that the government actions at issue constitute exempt government procurement. The claims here are under GATT Articles III:4 and III:5; TRIMs Agreement Article 2.1; and SCM Agreement Article 3.1(a). Having the SCM Agreement in play makes things more interesting.
