The U.S. has agreed to lift tariffs on Canadian solar products after a trade dispute settlement panel sided with Ottawa earlier this year, Canadian Trade Minister Mary Ng and U.S. Trade Representative Katherine Tai said on July 7.
Canada, which believes the tariffs violate the terms of the United States-Mexico-Canada Agreement (USMCA), sought assistance from a dispute settlement panel last year. Washington and Ottawa have been in talks to resolve the tariff dispute after Canada said in February that a panel had determined the tariffs were "unreasonable and in violation of a trade agreement."
"Today, we are pleased to have reached an agreement with the United States to remove U.S. tariffs on Canadian solar products," Mary Ng said in a statement Thursday. "The memorandum of understanding also contains a measure to ensure that imports of solar products from Canada do not damage the United States. Existing safeguards on imports of solar products. The U.S. and Canada "share common goals and commitments to combat climate change, and the removal of tariffs will bring stability and predictability to our renewable energy sector and enhance North America's competitiveness. ".
The government of Canadian Prime Minister Justin Trudeau has made tackling climate change one of its top priorities and has pledged to achieve net-zero carbon emissions by 2050. Previously, former US President Donald Trump first imposed "Section 201" safeguard tariffs on imported solar panels and batteries in January 2018, but did not exempt Canada and Mexico from tariffs, and USMCA's terms eliminated North American partners. most tariffs. U.S. President Joe Biden announced in February that the tariffs would be extended for another four years, but did not include much-needed components for the mega-project.