I told you so.
In a totally predictable
decision, the World Trade Organization says Ontario Premier Dalton McGuinty
broke international trade rules by insisting that solar and wind energy
projects have made-in-Ontario components.
McGuinty would only sign his
generous 20-year energy purchase agreements with people who bought the
made-in-Ontario solar and wind power systems.
Japan and the European Union
filed objections and the World Trade Organization has agreed that the Ontario
energy policy violates Canada’s trade commitments.
It’s not yet clear what will
happen next. If Ontario and Canada refuse to comply, as they are being urged to
by the two most powerful unions in the nation, Canada could be penalized with
tariffs that Japan and the European Union could put in place against Canadian
exports into their markets.
On the other hand, if McGuinty
dismantles his policy, hundreds of jobs and millions of dollars invested in
plants to make solar and wind power systems here might not be able to survive
competition from imports.
According to the Green Energy Act, wind and solar projects
in Ontario made between 2009 and 2011 must contain at least 25 per cent
Ontario-made content, and projects coming on-stream in 2012 must be at least 50
per cent made in Ontario.
