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For Immediate Release: Agreement on Internal Trade (AIT) Panel Finds In Favour of Alberta and British Columbia in Dispute with Ontario December 8, 2004 (Toronto) –
The Vegetable Oil Industry of Canada congratulates Alberta and British Columbia,
for their leadership, and Manitoba and Saskatchewan for their support, in the
successful challenge of Ontario’s trade restrictive measures that prevent the
manufacture and sale of vegetable oil based alternatives to dairy products. The AIT dispute resolution
panel agreed with Alberta and British Columbia’s arguments that Ontario’s
Edible Oil Products Act is a barrier to trade, thus inconsistent with
Ontario’s internal trade commitments under the AIT, and should be repealed.
The panel also found that any replacement measures that Ontario may
attempt to introduce through other legislation, such as the Milk Act, would also
be barriers to trade and would not be consistent with Ontario’s AIT
obligations. “VOIC applauds the western
provinces for their clear demonstration of their commitment to strengthening
Canada’s economic union,” said Sean McPhee, President of the Vegetable Oil
Industry of Canada. “By repealing
the Edible Oil Products Act, and not enacting any new restrictions, the McGuinty
government now has the opportunity to demonstrate its commitment to the AIT and
the Council of the Federation, and fulfill its promise to liberalize internal
trade,” added McPhee. The panel, comprised of
Elizabeth Cuddihy, Jacques Laurent and Paul Lalonde, also found that Ontario did
not make its legislative intentions and actions transparent, as it is required
to do so under its AIT commitments. Ontario
failed to adequately consult with Alberta and British Columbia, and all the
other Parties to the Agreement (all provinces, territories and the federal
government) before delaying the repeal of the Edible Oil Products Act (EOPA) on
two occasions. The Panel strongly advises all
Parties to the Agreement to adhere to the transparency obligations of the AIT by
consulting with all other Parties to the Agreement before they adopt new
measures. While the AIT
provides a fairly general obligation to consult, the Panel noted that there is a
further very specific set of consultation commitments that apply to agricultural
measures. In its formal
recommendations, the Panel stated that all Parties to the Agreement should take
“careful note” of the transparency obligations of the Agreement as they are
in place to aid the proper implementation and function of the Agreement and the
important liberalizing objectives it sets out. “With the elimination of
trade restrictions on canola and soy based alternatives to dairy products, VOIC
and its members look forward to introducing Ontario consumers to a whole range
of new, healthful products that are free of trans fatty acids, low in saturated
fat and rich in essential fatty acids that are vital to human growth and
development,” said McPhee. The economic benefits of the
repeal of the EOPA include the creation of a $225 million market for vegetable
oil/dairy blends in Canada, expanded acreage for both western Canadian canola
growers and Ontario soybean growers, enhanced refining opportunities for oilseed
processors in Alberta, Saskatchewan, Manitoba and Ontario, and increased demand
for dairy ingredients by food makers producing vegetable oil/dairy blends. VOIC (Vegetable Oil Industry of Canada) is an industry group representing 75,000 oilseed growers across Canada, oilseed processors and suppliers of fats and oils to the food industry, and makers of oilseed-based food products, such as margarine, cooking oil, salad dressing, mayonnaise and dessert toppings. Members include the Canadian Canola Growers Association, the Canadian Oilseed Processors Association, Archer Daniel Midland Agri-Industries Ltd., Bunge Canada, Canbra Foods, Cargill Limited, AarhusKarlshamn US and Canada, Loders Croklaan, Unilever Canada and Rich Products Corporation. -- 30 -- For Information:
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