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The Saskatchewan government called off its controversial ban on Alberta-plated vehicles at Saskatchewan job sites Monday, ending an escalating interprovincial trade war.

“They’ve done the right thing in the eleventh hour,” said Alberta Trade Minister Deron Bilous.

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In December, Saskatchewan announced that Alberta plates would be banned on government work sites.

The move spurred Bilous to issue an ultimatum — seven days to take the policy back, or the Alberta government would go to court.

Saskatchewan ignored the deadline, prompting Bilous to inform the New West Partnership trade secretariat of the dispute.

An independent panel was set to review the issue starting at 11:59 p.m. Monday, putting Saskatchewan at risk of $5 million in penalties if found in violation of the trade agreement.

“This is good news for companies on both sides of the border,” Bilous noted, adding the policy was nixed effective immediately.