Court upholds Quebec's white margarine
March 18, 2005
OTTAWA (CP) - Quebecers will continue to eat white margarine, at least for now, after the Supreme Court rejected arguments from manufacturer Unilever which opposed provincial restrictions against the sale of yellow margarine.
The justices made their decision immediately after hearing from company lawyer Gerald Tremblay for an hour and while refusing to listen to arguments from lawyers for the Quebec government and Quebec Dairy Producers.
During a brief oral decision, Justice Louis LeBel rejected all aspects of Unilever's argument.
They therefore confirmed the rulings of the Quebec Superior Court in 1999 and the Quebec Court of Appeal in 2003 that validated the Quebec regulation which prevents the sale of margarine in the same colour as butter.
Former Liberal premier Robert Bourassa passed the rule in 1987, which at that time mirrored a measure in Ontario.
Quebec said it was designed to ensure consumers weren't confused about the products, but ultimately protected the dairy industry.
According to dairy producers, 600 farms and 3,000 jobs would be threatened if margarine took butter's yellow glow.
Unilever said the rule reduced margarine sales in Quebec and boosted its expenses to produce white margarine only for the Quebec market.
The British-Dutch company argued in court that the regulation contravenes the North American Free Trade Agreement and World Trade Organization rules.
"The most important thing is the credibility of our governments when they sign international treaties," Tremblay said in an interview.
But Jean-Francois Jobin said the ruling is extremely important because it reinforces the "validity of the law."
"We couldn't have hoped for more because they confirmed without reservation our right to regulate," he said.
The ruling doesn't entirely end the debate on the colour of margarine.
Quebec must now defend its regulation before a special committee on interprovincial trade within Canada.
The Charest government last summer accepted Alberta's request to establish the committee to review if such regulations hamper such trade.