Ontario Loses WTO Appeal: What Happens Next?

After a lengthy appeal process, the WTO recently ruled in favour of Japan and the European Union in a case over Ontario’s domestic content requirements (DCR) for renewable energy projects under the province’s FIT Program. In light of this decision, the DCR, which mandate that project developers procure 50-60 percent of the value of their installations from equipment assembled or manufactured in Ontario, are now effectively illegal under the multilateral WTO agreement. As a result, Ontario’s provincial government, which oversees the administration of the FIT Program, is now in a position in which it must make a policy choice which will likely have far reaching political and economic consequences as well as a significant impact on the province’s renewable energy industry.

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