As reported last week, the EU has joined Japan in its WTO challenge to domestic content requirements in Ontario's feed-in tariff measure. The EU consultations request is here.
I wish I had more to say about the substance of this case. It would help if I knew what arguments Canada might make in response. Are they going to argue that the measure is not a domestic content requirement? Do they have some defense in mind? If anyone knows something, feel free to leave it in the comments.
More generally, I thought this comment from Ontario's energy minister was interesting:
Under the program, wind and solar developers are offered generous incentives if they abide by the domestic content provisions.
Energy Minister Brad Duguid portrayed the EU trade challenge as a sign of Ontario's success with the offering.
"Japan wasn't the only nation to notice the thousands of jobs being created here and the billions of dollars of investment flowing into Ontario," he said. "I suspect there's a little bit of envy there."
So his view is that domestic content requirements are good job creators. I don't doubt that this could be the case in the short term. But let's say Ontario's program is very successful, and Ontario develops a thriving wind and solar energy industry. Perhaps then other countries will decide to copy the model, so as to develop their own industries. Here's my question: If that all happens, what will Ontario's position be on the domestic content requirements that discriminate against products from Ontario? And what impact will such requirements have on jobs in Ontario?
One final thing: Have other provinces raised concerns under Canada's Agreement on Internal Trade?
