The European Union has brought a complaint to the World Trade Organization (WTO) over Ontario’s renewable energy policy.

In announcing the step today (11 August), the European Commission said that the subsidies provided by the Canadian government to producers of renewable energy who use domestic technology violate global trade rules. 

The EU has now requested consultations with Canada under the WTO’s dispute settlement procedure. Bilateral negotiations on the matter failed to resolve the issue.

Exports to Canada of equipment in wind power and photovoltaic power generation are “significant” but would be higher without the ‘buy Canadian’ provisions, the Commission says. It said it was “increasingly concerned” by similar measures by other trading partners.

Japan has already complained against Ontario’s policy before the WTO. 

Canada and the EU are in the process of negotiating a bilateral free-trade agreement.

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