RULING IMPROVES QUEBEC MARKET ACCESS FOR OILSEEDS

An intergovernmental panel has ruled that Quebec's restrictions on margarine colour needs to change.

A dispute resolution panel appointed under the Agreement on Internal Trade (AIT) found in favour of Alberta, Manitoba and Saskatchewan, who argued that Quebec's regulations restrict interprovincial trade in margarine.

Unlike the rest of Canada, Quebec requires all margarine sold within its borders be coloured in a way that differentiates it from butter. Analysts estimate that changing this requirement for the Quebec market could be worth up to $17 million per year for oilseed producers, processors and margarine manufacturers.

"As Canada's largest producer of canola – a key ingredient in margarine - we are obviously pleased with the panel's ruling," Agriculture and Food Minister Mark Wartman said. "This levels the interprovincial playing field on margarine trade and should do so with minimal effect on Quebec dairy producers."

The provinces and the federal government have worked hard to reduce domestic trade restrictions on agriculture and food goods in recent years – an effort that appears to be paying off in all jurisdictions.

"Given that the Government of Quebec is the current Chair of the Committee of Ministers of Internal Trade and an enthusiastic participant in the current process of strengthening the AIT, Saskatchewan expects Quebec to undertake the necessary changes to comply with the Panel decision in an expedient manner," stated Government Relations Minster Len Taylor.

The Panel has given Quebec until September 1st, 2005 to bring its regulations into compliance with the AIT.

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For More Information, Contact:

Scott Brown Agriculture and Food Regina Phone: (306)787-4031

Bill Carney Government Relations Regina Phone: (306) 787-6156