Hogan Lovells advises Canadian interests to favorable trade settlement that removes barriers to Canadian exports and paves the way for solar growth in the U.S.

Hogan Lovells advises Canadian interests to favorable trade settlement that removes barriers to Canadian exports and paves the way for solar growth in the U.S.

Press releases | 08 July 2022

Washington, D.C., 8 June 2022 – Global law firm Hogan Lovells advised Canadian interests in the negotiation of a favorable memorandum of understanding (MOU) between the Governments of Canada and the U.S. to eliminate safeguard tariffs on Canadian solar panels in accordance with the U.S.-Mexico-Canada Agreement (USMCA). The MOU follows a unanimous 15 February decision by a USMCA dispute settlement panel that the U.S. tariff imposed on Canadian solar panels violated the USMCA. Read more about the MOU here.

Hogan Lovells represented the Government of Canada and manufacturers Canadian Solar, Heliene, and Silfab with respect to the U.S. safeguard imposed on imports of  Canadian solar products. The firm also supported its clients throughout the USMCA dispute settlement panel process, including participating in the panel’s oral hearing.

“We applaud the efforts of the U.S. and Canadian governments in negotiating this innovative MOU. We are proud to have represented our clients to secure the removal of the U.S. safeguard tariff on Canadian exports of solar panels—this negotiated settlement will benefit both the U.S. and Canadian solar industries and contribute to the fast-growing North American solar sector,” said Hogan Lovells International Trade & Investment partner Jonathan Stoel. “Removing these tariffs will enable the Canadian solar industry to continue providing crucial support to U.S. energy needs at a time when the Biden Administration has observed that the U.S. electricity grid is under stress, and the United States requires innovative manufacturing capabilities and massive investments to spur the green energy revolution and to meet U.S. climate commitments.”

“We are pleased that the U.S. and Canada have reached an agreement consistent with the USMCA panel’s unanimous February 2022 ruling and the instructions of President Biden,” Stoel added. “This important agreement will facilitate Canadian exports to the U.S. market and the development of U.S. solar projects for years to come.”

In addition to Stoel, the Hogan Lovells team included International Trade & Investment partner Craig Lewis, counsel Michael Jacobson, and senior associate Nicholas Laneville (all Washington).