US To Remove Tariffs On Canadian Solar Products

The United States 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 Katherine Tai of the Office of the United States Trade Representative said on July 7.

Canada argued that the tariffs violated the terms of the United States-Mexico-Canada Agreement (USMCA) and had sought the assistance of the dispute settlement panel last year. The tariffs have been negotiated between Washington and Ottawa to resolve the dispute after Canada said in February that the panel had found them to be "unreasonable and contrary to the trade agreement".

In a statement Thursday, Mary Ng said, "Today, we are pleased to reach an agreement with the United States to eliminate U.S. tariffs on Canadian solar products. The MOU also includes a measure to ensure that imports of solar products from Canada do not undermine existing US safeguards on imports of solar products. The US and Canada "share common goals and commitments to combat climate change, and the elimination of tariffs will bring stability and predictability to our renewable energy sector and enhance North American competitiveness".

The government of Canadian Prime Minister Justin Trudeau has reportedly made tackling climate change one of its top priorities and has pledged to achieve net zero carbon emissions by 2050. This comes after 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 the USMCA's provisions, which removed most of the tariffs from the North American Partnership. In February, US President Joe Biden announced that the tariffs would be extended for another four years, but not on components that are urgently needed for large projects.