Producers in Western Canada will once again be able to ship vegetable oil products to Ontario, after the Alberta government successfully challenged Ontario policies that restricted their sale to the province, according to a release from the Vegetable Oil Industry of Canada.
The release said 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.
Sean McPhee, president of the Vegetable Oil Industry of Canada, said they are delighted that internal trade barriers are breaking down.
Alberta launched the challenge back in March 2010, and was supported by British Columbia, Saskatchewan and Manitoba as interveners.
The AIT panel has given Ontario until Feb. 1, 2011 to remove the restrictions. If Ontario does not comply, it faces a penalty of up to $5 million.
An earlier AIT panel ruled in favour of the westerners in 2004. However, Ontar io refused to oblige with the findings.