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Internal Trade Panel Rules in Favour of Alberta in its Challenge of Quebec's Margarine Colour RestrictionJune 29, 2005 (Toronto, CANADA) -- The Vegetable Oil Industry of Canada (VOIC) has learned that an Agreement on Internal Trade (AIT) Panel has found in favour of Alberta's interprovincial trade challenge of Quebec's margarine colour regulation. The Panel's report is expected to be made public on or before August 22, 2005. Manitoba and Saskatchewan as intervening parties in the dispute supported Alberta 's position in this case. “VOIC commends Alberta , Manitoba and Saskatchewan for their resolve in successfully challenging Quebec 's outstanding obligation under the AIT to eliminate the margarine colour regulation,” said Sean McPhee, President of VOIC. “Clearly, Alberta and the other western provinces have set the standard for internal trade liberalization and the strengthening of the Canadian economic union.” VOIC and its Alberta members, canola growers and oilseed processors, asked Alberta in 2003 to take this internal trade challenge to a dispute resolution process as provided by the AIT, to which all provinces including Quebec and the federal government are signatories. Provinces and the federal government signed the AIT in 1994 in order to eliminate internal barriers to trade in goods and services in Canada . Margarine coloring restrictions were identified as a barrier to trade under the AIT in 1997, and provinces were obliged to remove these barriers at that time. In its request of Alberta to take this matter to dispute resolution under the AIT, VOIC stated that Alberta canola-based, yellow-coloured margarine cannot be sold in Quebec under discriminatory Quebec provincial law and that margarine's market share of the combined margarine/butter spread market in Quebec was ten percentage points below the national average. As stated by VOIC, the cost to the vegetable oil industry as a result of the Quebec margarine colour regulation is approximately $20 million per year, which has resulted in a total loss in excess of $160 million since 1997 when Quebec was obliged to repeal its margarine colour regulation. McPhee adds that, “The removal of Quebec 's margarine colour restriction is great news for the Alberta and Canadian agri-food industry as it sends a clear message that unnecessary and discriminatory regulation that harms the interests of growers, processors and consumer good makers can and will be removed under the Agreement on Internal Trade and other mechanisms, as required.” 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, AarhusKarlshamn US and Canada, Loders Croklaan, Unilever Canada and Rich Products Corporation. -- 30 -- For Information: Sean McPhee |