English
On 13 September 2010, Japan requested consultations with Canada regarding Canada's measures relating to domestic content requirements in the feed-in tariff program (the “FIT Program”).
Japan claimed that the measures are inconsistent with Canada's obligations because they appear to be laws, regulations or requirements affecting the internal sale, offering for sale, purchase, transportation, distribution, or use of equipment for renewable energy generation facilities that accord less favorable treatment to imported equipment than that accorded to like products originating in Ontario.
Both the Panel and the Appellate Body found, albeit for different reasons, that the measures at issue did not fall within the scope of the derogation under Art. III:8(a) of GATT. Thus, the Appellate Body found that the discrimination relating to foreign generation equipment was not covered by the derogation.
The Appellate Body reversed the Panel majority's finding that the European Union and Japan failed to establish that the challenged measures conferred a benefit.
Based on: https://www.wto.org/english/tratop_e/dispu_e/cases_e/1pagesum_e/ds412sum_e.pdf
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds412_e.htm