OTTAWA - The federal government has set aside $1.7 million over the next three years to fund research into the affects of bisphenol A, a soon-to-be-banned chemical in Canada used in polycarbonate baby bottles, the Department of Health said in a media release Saturday.

Ottawa officially listed bisphenol A on its list of toxic substances Saturday and said regulations prohibiting the importation, sale and advertising of baby bottles containing bisphenol A would come into force in 2009.

"(The) announcement is a milestone for our government and for Canada as the first country in the world to take regulatory action," said Health Minister Tony Clement in the release.

The government said the research funding comes on top of "major studies currently under way at Health Canada and Environment Canada" to fill gaps in current data about the chemical.

Health Canada said current levels of bisphenol A found in baby bottles are believed to fall below the danger threshold.

"However, due to the uncertainty raised in some studies relating to the potential affects of low levels of bisphenol A, the government of Canada is taking action to enhance the protection of infants and young children," Health Canada said in the statement.