Trade panel sides against Quebec on vegetable oil based dairy products

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Published: May 8, 2014

The Saskatchewan cabinet minister responsible for trade says he is confident that a recent decision allowing better access for oilseeds in Quebec will stand.

Tim McMillan said the dispute resolution panel under the pan-Canadian Agreement on Internal Trade was clear in its ruling.

“We think that nothing has changed fundamentally since the ruling,” he told reporters.

The April 30 ruling stated that some sections of Quebec’s Food Products Act restrict the use of vegetable oil based dairy products and contravene domestic trade rules.

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Quebec has said it will appeal the decision.

The appeal could take up to seven months. McMillan said the appeal process has to be completed before full access can be gained.

“We are Canada’s largest producer of oilseeds,” he said.

“We ship our commodities around the world and having this stepping stone within Canada is the first step before we can expand broader.”

Saskatchewan challenged Quebec’s restrictions on oil-based dairy products, saying it limited access by producers and processors.

Quebec represents one-quarter of Canada’s food market.

McMillan said suppliers have worked hard to provide appropriately coloured margarine. Securing the market is the next step.

Oilseed products such as dessert topping, coffee creamer and ice cream are all affected by the market restrictions.

McMillan said the panel ruling gives the food industry the option to use the products they prefer.

The panel heard arguments at a public hearing in Quebec City in January. Saskatchewan’s position was supported by Alberta, British Columbia and Manitoba.

Vegetable Oil Industry of Canada president Sean McGhee also said he expects the decision will be upheld.

“We acknowledge the leadership shown by Saskatchewan, along with the other western provinces, in pursuing open markets in Canada,” he said. “It seems like a small thing, but businesses in Canada should not be discriminated against by unfair trade rules.”

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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