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AIT PANEL RULING IS A WIN FOR SASKATCHEWAN

Released on October 25, 2010

Oilseed producers and processors now have access to one of Canada's largest markets thanks to an Agreement on Internal Trade (AIT) summary panel ruling. The ruling determined Ontario's restrictions on the sale of certain vegetable oil blended dairy products contravene AIT rules.

"This ruling will help our oilseed producers and processors by allowing access to one of Canada's largest markets for new and innovative healthy dairy blend alternatives," Agriculture Minister Bob Bjornerud said. "This, in turn, will create additional opportunities for Saskatchewan producers and processors to grow their businesses."

This is the first ruling under the new AIT dispute resolution process. The new rules provide better tools to ensure enforcement and compliance of panel rulings.

"As Saskatchewan led the negotiation of the new AIT dispute resolution rules, we are pleased to see the process at work and look forward to Ontario fixing the breach," Minister responsible for Trade Jeremy Harrison said. "This case highlights the importance of the West working together to champion the interests of our agriculture sector."

At the start of this dispute 10 years ago, the Vegetable Oil Industry of Canada estimated that repeal of this legislation could lead to the development of a $225 million market for vegetable oil blended dairy products like margarine or butter containing 51 per cent vegetable oil. It is estimated the benefits today would be even greater.

In March, Alberta and the supporting provinces, Saskatchewan, British Columbia and Manitoba, formally requested the establishment of a summary panel to determine if certain regulations in Ontario's Milk Act and its restrictions on the sale of certain vegetable oil blended dairy products violated AIT.

The Government of Ontario has until Feb. 1, 2011 to comply with the panel's ruling. If Ontario remains in breach of the AIT it could face a penalty of up to $5 million.

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For more information, contact:

Patrick Boyle
Agriculture
Regina
Phone: 306-787-2359

Joanne Johnson
Enterprise Saskatchewan
Regina
Phone: 306-787-7967

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