When is a clean energy incentive a trade violation?

The World Trade Organisation (WTO) has backed complaints by the European Union and Japan against Canada’s subsidies to renewable energy producers. The WTO judges have agreed with EU and Japan that the Canadian subsidies had discriminated against foreign supplier. EU and Japan have raised the issue against Canada’s feed-in tariff program where renewable energy producers are paid above-market rates when they use Canadian-made equipment. The subsidy was supposed to encourage investments and help Ontario meet its target to shut all coal-power generators by 2014.

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