May 7, 2013

1. On May 6th, 2013 (Geneva time), the WTO released an Appellate Body Report examining certain local content requirements under the Feed-in Tariff Program in Ontario, Canada, a case which was commenced pursuant to Japan's request.
2. The Report supported the main claims of Japan and ruled that the local content requirements under the Feed-in Tariff Program in Ontario are inconsistent with the related WTO Agreements.
3. This is the first case that a measure providing preferential treatment to domestically manufactured goods under the Feed-in Tariff Program is WTO-inconsistent. Japan considers this ruling can be highly evaluated from the viewpoint of preventing protectionism in renewable energy sector, which can be regarded as a major growth industry.
4. Japan strongly requests Canada to accept the Appellate Body's rulings and recommendations, and accordingly, to rectify the WTO-inconsistent measures immediately.

Multilateral Trade System Department, Trade Policy Bureau