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ARTICLE · 09 JULY 2013

Ontario’s FIT Program: Implications Of WTO Decision

Blake, Cassels & Graydon LLP
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On May 6, the World Trade Organization (WTO) Appellate Body released its ruling on Japan and the European Union’s claims against Canada regarding Ontario’s feed-in tariff program.

CanadaInternational Law
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
Sharon Wong
Sharon Wong
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On May 6, 2013, the World Trade Organization (WTO) Appellate Body released its ruling on Japan and the European Union's claims against Canada regarding Ontario's feed-in tariff program (FIT Program). The Appellate Body largely upheld the earlier decision of the Dispute Settlement Panel (the Panel) formed by the WTO's Dispute Settlement Body, which found that the FIT Program violates certain of Canada's WTO obligations. The Province of Ontario has indicated it plans to comply with the WTO's decision, yet some issues remain unresolved.

THE DISPUTE
The Province of Ontario uses the FIT Program to allow certain renewable energy producers to lock into fixed-price electricity purchase contracts at premium rates over the long term, in exchange for feeding into the grid. The objectives of the FIT Program include increasing renewable electricity supply and spurring "cleantech" investment in Ontario.

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