Vegetable Oil and The Agreement on Internal Trade: 

A History of Missed Deadlines and Unfulfilled Commitments

 

June 1993    Eight policy barriers to interprovincial trade are referred to the Federal/Provincial Agri-Food Inspection Committee (FPATPC) for resolution.  The list includes:  margarine, butter blends and vegetable oil alternative to dairy products.

 

July 1994     Record of Decision from the July 1994 Agriculture Ministers Conference includes commitments to “bring technical barriers with policy implications under the scope and coverage of the AIT” which includes completing “a work plan to harmonize margarine colouring regulations by September 1, 1997” and to “determine a timeline for establishing common standards (for vegetable oil alternatives to dairy products and butter blends) at the Ministers meeting in November 1994.” (Record of Decision, July 1994 Agriculture Ministers Conference)

 

Jan 1 1995    Ontario stops enforcing colour regulation regarding    
                    margarine.

 

June 1995    Michael N. Gifford, Director General for Agriculture and Agri-Food Canada submits report to all Agriculture Ministers regarding the reduction of barriers to interprovincial trade for dairy blends, alternative foods and margarine.  The report notes “in the Canadian agri-food industry there is a demand for a wider range of dairy blends, alternative (vegetable oil/protein based) foods and margarine.  However, differing provincial regulations are preventing firms which process these products from being fully competitive because economies of scale are difficult to achieve in a fragmented market.”

 

                    The report also notes “existing provincial regulations were introduced to support local firms in each province and to protect consumer interests.  They were not introduced to limit interprovincial trade, however, they have had that effect.” (June 16, 1995 memo from Michael Gifford to participants in April 28th meeting on dairy blends, alternative foods and margarine)

 

July 1 1995  Agreement on Internal Trade (AIT) comes into effect.

 

June 1996    An official on behalf of the Quebec Premier, commits to repealing that province’s margarine colour regulation by September 1, 1997. (June 20, 1996 letter to Lawrence Strong, Unilever Canada from Bernard. Lauzon)

 

Jan. 1997     Quebec drafts regulation to remove the margarine colour restriction (draft regulation appears in Quebec Gazette).

 

Feb. 97        Quebec withdraws draft regulation to repeal the margarine colour regulation.


Sept. 1 97    Deadline for the elimination of technical barriers to trade with policy implications regarding blends, alternative foods and margarine.

Oct. 1997    The Federal/Provincial Committee on Trade under the AIT notifies the Federal Provincial Agriculture Trade Policy Committee that technical barriers with policy implications including margarine colouring restrictions and other margarine standards; and, standards regarding dairy blends and vegetable oil alternatives to dairy products, were not resolved by the September 1, 1997 deadline.  (October 1, 1997 letter to Ministers Manley/Downey from Gifford/Schildroth)

Oct. 1997    Hon. Vanclief acknowledges “there is no change in the Agreement on Internal Trade (AIT) in relation to the treatment of technical barriers to interprovincial trade.  The agriculture and food goods chapter of the AIT now fully applies to measures that have been identified as technical barriers with policy implications.” (Oct 20 1997 letter from Vanclief to Bruce. Mactaggart, Unilever Canada)

Dec. 1998    Deadline for Agriculture Ministers to submit their “proposal to negotiate a revised agriculture and food chapter” that would include “principles that would apply to measures that restrict the entry of product of one province into commerce in another province.” (August 26, 1997 letter from Hon. Vanclief to Bruce Mactaggart, Unilever Canada)

June 1999    Quebec Superior Court issues judgment on Quebec 
                    margarine colour regulation law suit that margarine colour is 
                    “protectionist”.  Court, however declines to take jurisdiction 
                    to require government to repeal the regulation.

June 2001    Ontario government introduces Bill 87 -- "An Act to regulate food quality and safety and to make complimentary amendments and repeals to other Acts" which would result in the repeal of the Edible Oil Products Act (EOPA).

Nov. 2001   Edible Oil Foods Association of Canada and its members 
                   make oral and written submissions to the Standing Committee 
                   on Justice and Social Policy, Ontario Legislative Assembly 
                   supporting Bill 87 and the immediate repeal of the EOPA.

Dec. 2001    Bill 87 is passed by Ontario Legislature.

Feb. 2002    The Prime Minister and the provincial premiers complete their trade mission to Germany with the acknowledgement that Canada must tear down interprovincial trade barriers to attract foreign investments. Bernard Lord, the New Brunswick Premier, and Alberta's Ralph Klein agree to head a federal-provincial committee on trade barriers that has not met for 18 months.

March 2002  Quebec Court of Appeal hears margarine colour regulation appeal by Unilever Canada; decision pending.

Apr-Oct. 02   Quebec agrees to a Chapter 17 panel process with 
                     Ontario in a letter filed with the AIT Secretariat.

§     Ontario files its AIT Chapter 17 government-to-government submission on September 13, 2002 and nominates a panelist by October 30th deadline.

§    Quebec refuses to nominate a panelist or file a defense submission.

Dec. 2002    Ontario Legislature gives unanimous approval to a bill that delays the repeal of the Edible Oil Products Act (EOPA) to June 1, 2004.

March 2003  Canadian Canola Growers Association and the Canadian Oilseed Processors Association request that Alberta challenge Ontario for its failure to repeal the Edible Oil Products Act under the Chapter 17 dispute resolution provisions of the Agreement on Internal Trade.

July 2003     United States Trade Representative website lists Quebec margarine colour regulation and provincial prohibition on dairy/vegetable oil blends as barriers to free trade.

July 2003  Vegetable Oil Industry of Canada (VOIC), 
                representing 90,000 oilseed growers, processors and 
                manufacturers of oilseed-based food products call 
                upon the Federal and Provincial Ministers of 
                Agriculture to complete long overdue commitments 
                to eliminate regulations that prevent the sale of 
                vegetable oil-based alternatives to dairy products 
                under the AIT.

 

 

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Last modified: March 21, 2007