US, Europe Join Trade Fight over Ontario’s Green Energy Plan

(CB Online – Maria Babbage, The Canadian Press)

Ontario’s green energy ambitions appear to be pitting the country’s biggest trading partners against Canada in a dispute over government subsidies for solar and wind power projects. Both the United States and the European Union want to join consultations over a trade complaint made by Japan to the World Trade Organization, saying they have a significant stake in the discussions.

Even though the dispute is with Ontario, the federal government is ultimately responsible to defend the province because Canada is a signatory to the WTO, said International Trade Minister Peter Van Loan. “We always want to maintain good trading relationships with our major partners, and we always want to make sure that our actions are World Trade Organization compliant,” he said Friday in an interview with The Canadian Press. “In this case, we certainly encourage the Ontario government to take advantage of the consultations phase of this process to seek a satisfactory resolution.”

Earlier this week, both the U.S. and the EU argued in separate letters to the WTO that they have a “substantial trade interest” in the talks. Read more here.

Japan Challenges Canadian Renewable Energy Incentives at WTO

(Bridges Weekly)

Japan launched dispute settlement proceedings against Canada at the World Trade Organization on September 13 by saying that the province of Ontario’s green energy plan unfairly pressures its producers of clean power to buy hardware from local manufacturers.

Specifically, Japan is challenging Ontario’s Feed-in Tariff Program (FIT), which enables the province to subsidise electricity operators that use renewable energy produced using stringent local content requirements. The “made-in-Ontario” requirement demands that up to 60% of all green energy project inputs be manufactured in the province as it strives to create local jobs. [...]

But Japan says the local-content provisions breach portions of the General Agreement on Tariffs and Trade (GATT), and fall under the definition of a “prohibited subsidy.” It has asked for “consultations” with Canada under the WTO process, the first stage of a formal trade dispute. Read more here.

Low Carbon Tags For Products

(Global Times)

The National Development and Reform Committee (NDRC), and the Certification and Accreditation Administration of China (CNCA) on Thursday stated to make out a framework on labeling products as low carbon, according to reports.

Future products marked with the low-carbon symbol will bring positive effect on environmental protection and carbon emission reduction. They can guide consumers to consciously purchase eco-friendly stuff.

Low carbon product authentications have been used in many countries like Japan, Germany, and the UK, but different countries adopt various evaluation methods, so China needs to find one that suits its own needs, said Chen Wei, a senior official from the China Quality Certification Center (CQC).

The Ministry of Information and Industry (MIIT), CQC and the Ministry of Environment (MOE) also joined in the project.

On Clean Energy, China Skirts Rules

(New York Times)

Until very recently, Hunan Province was known mainly for lip-searing spicy food, smoggy cities and destitute pig farmers. Mao was born in a village on the outskirts of Changsha, the provincial capital here in south-central China.

Now, Changsha and two adjacent cities are emerging as a center of clean energy manufacturing. They are churning out solar panels for the American and European markets, developing new equipment to manufacture the panels and branching into turbines that generate electricity from wind. By contrast, clean energy companies in the United States and Europe are struggling. Some have started cutting jobs and moving operations to China in ventures with local partners.

The booming Chinese clean energy sector, now more than a million jobs strong, is quickly coming to dominate the production of technologies essential to slowing global warming and other forms of air pollution. Such technologies are needed to assure adequate energy as the world’s population grows by nearly a third, to nine billion people by the middle of the century, while oil and coal reserves dwindle.

But much of China’s clean energy success lies in aggressive government policies that help this crucial export industry in ways most other governments do not. These measures risk breaking international rules to which China and almost all other nations subscribe, according to some trade experts interviewed by The New York Times. Read more here.

Few “Green” Technologies Subject to Export Controls but BIS Pledges Further Improvements

(World Trade Interactive)

An assessment of the impact of U.S. export controls on “green” technology items released this month by the Bureau of Industry and Security finds that while most such items do not currently require an export license there are steps BIS can take to further promote and expedite exports in this sector.

This assessment examines the potential effects of export controls on commodities, software and technology that either are or can be used to create products that contribute to clean energy, energy efficiency and other environmental or green initiatives (i.e., green technology). BIS states that although this is not an exhaustive assessment of all green technology items and initiatives that may be captured by dual-use export controls, it is an attempt to anticipate ways that BIS can support the creation of green jobs and advances in green technology by facilitating secure trade while mitigating national security concerns. Read more here.

Greenbuild – Chicago, November 17-19, 2010

(DFAIT)

Greenbuild is the largest conference and expo dedicated to green building in North America. Thousands of international building professionals will come for the latest innovative green technologies, products and services, educational sessions, green building tours, seminars and networking events. Event website: http://www.greenbuildexpo.org/Home.aspx

Contact: The Canadian Trade Commissioner Service in Chicago, tel.: 312-616-1860,chcgo-td@international.gc.ca

Renewable Energy Trade Mission to Australia in September

(Canada-Asia News)

The Consulate General of Canada in Sydney is inviting Canadian companies to join a trade mission to the EcoGen Conference and Exhibition 2010, Australia’s business-to-business event for the clean energy industry. EcoGen, taking place in Sydney from September 5-10, will feature an exhibition that includes the latest clean energy solutions. Over 700 clean energy decision makers will attend the conference and exhibition. Canadian trade commissioners will also organize individual programs for participants that will consist of one-on-one meetings in Sydney, Melbourne and Brisbane.

Find out more information here.

Green Rule Draws Flak

(Financial Post)

As investment in Ontario’s alternative-energy sector continues apace, legal experts are warning the provincial government may be violating international trade agreements with its local-content requirements. At the same time, energy producers are finding it difficult to meet the “made-in-Ontario” rules, which require a certain percentage of a project’s cost be sourced within the province.

“The EU is really fuming about this,” said Milos Barutciski, an international trade partner with Bennett Jones LLP, in Toronto.

“While on the one hand they’re negotiating with Canada about access to government procurement, the main province that they’re interested in getting access to comes up with this fairly straightforward discriminatory restriction on government procurement.”

Officials from the European Union have recently joined a call from the government of Japan asking Ontario to drop the domestic-content requirements of its legislation, saying it views Ontario’s rules as protectionist and a violation of international trade agreements. Read more here.

Two New Investigations on Trade in Environmental Goods

(STR/World Trade Interactive)

The [U.S.] International Trade Commission has launched two new investigations that will (a) assess the probable economic effect of providing duty-free treatment to imports of certain environmental goods and (b) examine international trade in such products and the competitive conditions facing U.S. environmental goods industries.

With respect to the first investigation, the ITC will update previously provided advice on the probable economic effect of providing duty-free treatment to imports of certain environmental goods on U.S. imports, industries in the U.S. producing like or directly competitive articles and U.S. consumers. The ITC’s confidential report will be submitted to the Office of the U.S. Trade Representative by Oct. 18. The ITC will not hold a public hearing in connection with this investigation but welcomes written submissions for the record no later than July 7. Read more here.