Japan has requested consultations with Canada regarding the domestic sourcing requirement in Ontario's renewable energy promotion feed-in-tariff programme, which guarantees long-term prices for renewable energy generation facilities that source up to 60% of their inputs from Ontario.
The World Trade Organization (WTO) has established a Panel to examine and settle the dispute.
20 July 2011: The World Trade Organization (WTO) Dispute Settlement Mechanism has established a Panel to arbitrate in the Japan vs. Canada case on measures applied to Canada’s renewable energy sector.
The panel will examine the case “Canada – Certain Measures Affecting the Renewable Energy Generation Sector” to determine whether Ontario’s feed-in-tariff programme violates WTO law when providing guaranteed long-term pricing for the output of renewable energy generation facilities that source up to 60% of their inputs from Ontario. Domestic content requirements are not permitted under WTO law, although exceptions may be accepted for environmental purposes, if certain specific conditions are met. [WTO Dispute Settlement Case]