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Current status back to top
Key facts back to top
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Summary of the dispute to date back to top
The summary below was up-to-date at
Consultations
Complaint by Japan. (See also DS426)
On 13 September 2010, Japan requested consultations with Canada regarding Canada's measures relating to domestic content requirements in the feed-in tariff program (the “FIT Program”).
Japan claimed that the measures are inconsistent with Canada's obligations under Article III:4 and III:5 of the GATT 1994 because they appear to be laws, regulations or requirements affecting the internal sale, offering for sale, purchase, transportation, distribution, or use of equipment for renewable energy generation facilities that accord less favorable treatment to imported equipment than that accorded to like products originating in Ontario; that the measures could be internal quantitative regulations relating to the mixture, processing or use of a specified amount or proportion of equipment for renewable energy generation facilities which require that equipment for renewable energy generation facilities be supplied from Ontario sources; and that the measures appear to require the mixture, processing or use of equipment for renewable energy generation facilities supplied from Ontario in specified amounts or proportions, being applied so as to afford protection to Ontario production of such equipment, contrary to the principles of Article III:1 of the GATT 1994.
Japan also claimed that the measures appear to be inconsistent with Article 2.1 of the TRIMs Agreement because they appear to be trade-related investment measures that are inconsistent with the provisions of Article III of the GATT 1994.
Finally, Japan alleged that it appears that a subsidy is granted under the measures because there would be a financial contribution or a form of income or price support, and a benefit is thereby conferred. It is also claimed that the subsidy would be a prohibited subsidy under Articles 3.1(b) and 3.2 of the SCM Agreement because it appears to be provided “contingent … upon the use of domestic over imported goods”, namely contingent upon the use of equipment for renewable energy generation facilities produced in Ontario over such equipment imported from countries such as Japan.
On 24 September 2010, the United States requested to join the consultations. On 27 September 2010, the European Union requested to join the consultations. Subsequently, Canada informed the DSB that it had accepted the requests of the European Union and the United States to join the consultations.
On 1 June 2011, Japan requested the establishment of a panel. At its meeting on 17 June 2011, the DSB deferred the establishment of a panel.
Panel and Appellate Body proceedings
At its meeting on 20 July 2011, the DSB established a panel. Australia, China, the European Union, Honduras, Korea, Norway, Chinese Taipei and the United States reserved their third-party rights. Subsequently, Brazil, El Salvador, India, Mexico and Saudi Arabia reserved their third-party rights. On 26 September 2011, Japan requested the Director-General to determine the composition of the panel. On 6 October 2011, the Director-General composed the panel. On 2 March 2012, the Chairman of the Panel informed the DSB that the panel would not be able to issue its report within six months. The timetable adopted by the panel after consultations with the parties envisaged that the final report would be issued to the parties by September 2012. The panel expects to conclude its work within that time-frame.
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