The tussle between Japan and Canada over its renewable energy subsidy program entered a new phase as the former decided to bring its complaint to the WTO.
According to Japanese sources the country will file a complaint with the World Trade Organization against Canada possibly next week, saying it should not allow the provincial government of Ontario to treat local firms favorably in subsidizing the cost of solar and wind power generation.
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Japan believes the subsidy program under which Ontario buys electricity produced with solar and wind power equipment that incorporate certain levels of locally produced components contravenes WTO rules that ban unfair treatment of import products, except tariffs.
The Ontario government has been running the program partly to expedite environmentally friendly power generation on the strength of renewable energy such as sun rays and wind power.
Japan is taking the action with the Geneva-based global trade referee to keep Japanese manufacturers of relevant equipment from being placed at a disadvantageous position in their competition with Canadian rivals.
With the envisioned litigation, Japan also wants to prevent protectionist moves from gaining momentum across the world in the name of conserving the environment, they said.
According to Japanese sources the country will file a complaint with the World Trade Organization against Canada possibly next week, saying it should not allow the provincial government of Ontario to treat local firms favorably in subsidizing the cost of solar and wind power generation.
Will edible oil prices continue to weaken? For latest trends and insightful analysis on India s oilseeds market, subscribe to Commodity Online Info Service
Japan believes the subsidy program under which Ontario buys electricity produced with solar and wind power equipment that incorporate certain levels of locally produced components contravenes WTO rules that ban unfair treatment of import products, except tariffs.
The Ontario government has been running the program partly to expedite environmentally friendly power generation on the strength of renewable energy such as sun rays and wind power.
Japan is taking the action with the Geneva-based global trade referee to keep Japanese manufacturers of relevant equipment from being placed at a disadvantageous position in their competition with Canadian rivals.
With the envisioned litigation, Japan also wants to prevent protectionist moves from gaining momentum across the world in the name of conserving the environment, they said.
