Removal of U.S. Safeguard Tariffs on Canadian Solar Products

Trade Update • July 11, 2022

An agreement has been reached between Canada and the United States to remove the U.S. safeguard tariffs on solar products from Canada. This agreement follows Canada’s victory at a CUSMA dispute panel earlier this year, which found that the United States’ tariffs were in violation of CUSMA.

Statement

Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development has stated:

“This agreement will bring stability and predictability to our renewable energy sector and strengthen North American competitiveness. It is a clear recognition of Canada’s place as a leader in the fight against climate change, and that Canadian producers of solar technology will continue to supply global markets at an increasing rate.

This agreement is only possible due to the strong dispute settlement mechanism that Canada successfully negotiated and protected within CUSMA. It reaffirms the importance of upholding rules based trade both here in North America, and around the world.

Our government will always stand up for our world class solar industry and the thousands of workers and jobs across the country.”

Quick Facts

• Solar energy power is expected to play a substantial role in both Canada’s and the United States’ work to achieve clean electricity grids. The removal of the safeguard tariffs will allow the solar industries in Canada and the United States to become more closely integrated and will contribute to the 2 countries’ shared climate objectives.

• Since the imposition of the U.S. safeguard tariffs in early 2018, exports of solar products from Canada to the United States have declined by as much as 82%.

• Canada held consultations with the United States under chapter 31 of CUSMA on January 28, 2021, and Canada requested a dispute settlement panel on June 18, 2021. The panel’s final report was issued to the parties on February 1, 2022.

• Public versions of all of Canada’s submissions in this dispute are available on the Trade Agreements Secretariat electronic filing system. Please note that registration is required to access the system.

Source: Global Affairs Canada