Canada sought the help of a dispute settlement panel last year, saying the tariffs violated the terms of the United States-Mexico-Canada Agreement (USMCA).
In February, Canada said the panel found the trade agreement “unfair and inconsistent.” It also claimed that the US prevailed on some aspects of the panel’s decision.
Since then, talks have been ongoing between Washington and Ottawa to resolve the dispute.
“Today, I am satisfied with the agreement reached with the United States to remove US tariffs on solar products from Canada,” Ng said in a statement.
Ng said the U.S. and Canada “shared goals and commitments to combat climate change” and that raising tariffs would “bring stability and predictability to our renewable energy sector and strengthen North America’s competitiveness.”
Canadian Prime Minister Justin Trudeau’s government has made climate change one of its top priorities and committed to zero carbon emissions by 2050.
Former US President Donald Trump first imposed “Section 201” tariffs on imported solar panels and solar cells in January 2018, but did not exempt Canada and Mexico from the duties. The terms of the USMCA eliminate most tariffs between North American partners.
US President Joe Biden in February extended the tariffs for another four years, but in a major concession to installers, loosened conditions to exclude the dominant group technology from major US projects.
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