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Ontario Clean-Energy Subsidies Break Rules, WTO Says

Dec 20, 2012
Source: 
(Bloomberg)

Ontario’s subsidies for clean-energy producers that use local technology were ruled in breach of World Trade Organization regulations, supporting complaints by the European Union andJapan against Canada.

The province’s feed-in tariff, or FIT program, which pays above-market rates to generators of renewable energy that use Canadian-made equipment, undermines competition because it favors domestic products, according to a WTO panel report posted on the agency’s website today.

The federal government will appeal the decision, Kirby Dier, a spokeswoman for the Ontario Ministry of Energy, wrote in an e-mail. “Our position has always been that the FIT program is consistent with Canada’s obligations under the WTO agreements.”