GENEVA — Japan has initiated a trade dispute against Canada related to renewable energy equipment in the province of Ontario, the World Trade Organization confirmed on Monday.
The Japanese mission to the WTO said the dispute centres on guaranteed long-term pricing for solar and wind generators made with a certain percentage of locally-produced components.
Ontario, Canada’s most populous province, launched an incentive programme for renewable energy producers last October, aiming to create jobs and eliminate coal-fired power generators.
Tokyo believes that the pricing guarantees offered by Ontario in the wind and solar sectors constitute subsidies that violate Canada’s obligations under international trade law.
The request for consultations by Tokyo is the first step in a WTO dispute. If the two sides do not reach an agreement on their own, a WTO panel would be set up to arbitrate the dispute in a process that could eventually lead to retaliation.