Ontario Told to Open Market to Vegetable Oil Food Products

TORONTO, Oct. 25 /CNW/ - The Vegetable Oil Industry of Canada (VOIC) congratulates the government of Alberta for its successful challenge of Ontario's protectionist policies that restrict the sale of vegetable oil food products. 

A panel under the Agreement on Internal Trade (AIT) determined that Ontario regulations restricting the sale of products that blend vegetable oil with dairy ingredients are a barrier to interprovincial trade.

Alberta launched the challenge in March 2010, supported by British Columbia, Saskatchewan and Manitoba as interveners. The AIT panel has given Ontario until February 1, 2011 to remove the restrictions.  If Ontario does not comply, it faces a penalty of up to $5 million.

"We are delighted that as a result of Alberta's leadership in breaking down internal trade barriers, the market for vegetable oil-based products in Canada is opening up," said Sean McPhee, president of the Vegetable Oil Industry of Canada.  "Consumers in Ontario now stand to benefit from new, healthful products in the spreads and beverage food category."

In 2004, an AIT panel found in favour of Alberta and British Columbia (and Manitoba and Saskatchewan as interveners) in this dispute, obliging Ontario to remove its restrictions.

However, Ontario refused to comply with the panel's findings.

Earlier this year, VOIC made the request of Alberta to re-challenge Ontario because of recent amendments to the AIT which strengthen enforcement measures and provide for monetary penalties.

The panel report released today found that the 2004 panel findings regarding economic injury to the vegetable oil industry, including oilseed growers and processors in western Canada and Ontario, "were legally and factually correct, and that the same kind of injury continues as a result of Ontario's measures."

"We are very pleased that the panel agreed with the evidence submitted by VOIC that Ontario's restrictions are a barrier to internal trade and a denial of economic opportunity to the vegetable oil industry," said McPhee.  "In our view similar restrictions, maintained by any other government in Canada, are inconsistent with the Agreement on Internal Trade and should be immediately repealed."

VOIC (VEGETABLE OIL INDUSTRY OF CANADA) INC. - VOIC (INDUSTRIE DE L'HUILE VÉGÉTALE DU CANADA) INC. is a national not-for-profit industry group representing 52,000 oilseed growers across Canada, seed developers, oilseed processors and suppliers of fats and oils to the food industry, and makers of oilseed-based food products such as margarine, shortenings, cooking oil, salad dressing, mayonnaise and dessert toppings.  Members include: Canadian Canola Growers Association, Pioneer Hi-Bred, Dow AgroSciences, the Canadian Oilseed Processors Association, Archer Daniels

Midland Agri-Industries Ltd., Bunge Canada, Richardson Oilseed Limited, Loders Croklaan, GFA Brands Inc., Unilever Canada, Margarine Golden Gate-Michca Inc. and Grupo Sos ARI Canada (Bertolli Olive Oil).

For further information:

Sean McPhee
416214-1232