The Office of the United States Trade Representative is suggesting B.C. liquor policy unfairly excludes U.S. wine from grocery store shelves in the province.
The Office has now launched a new trade enforcement action against Canada at the World Trade Organization (WTO).
The action claims B.C. regulations breach Canada’s WTO commitments and have adversely impacted U.S. wine producers.
The Office, which is still operating under the administration of President Barack Obama, says the B.C. liquor policy “discriminates” against U.S. and other imported wine by allowing only B.C. wine to be sold on regular grocery store shelves.
In April 2015, the new provincial liquor policy, aimed at promoting local, made-in-B.C. products, made it possible to sell alcohol in grocery stores.
But the Office says these regulations exclude all imported wine from “this new and growing retail channel for wine sales in B.C,” providing, what it calls, a substantial competitive advantage for B.C. wine.
“American winemakers produce some of the highest-quality, most popular wines in the world. When U.S. wine producers have a fair shot at competing on a level playing field, they can compete and win in markets around the globe,” said U.S. Trade Representative Michael Froman. “Canada and all Canadian provinces, including B.C., must play by the rules.”
In a news release, the provincial government says it will oppose the American trade complaint.
“The B.C. government is confident that we are complying with B.C.’s and Canada’s international trade obligations,” said Shirley Bond, Minister of Jobs, Tourism and Skills Training.
“We will continue to work closely with Global Affairs Canada to ensure that B.C.’s liquor policies fall within these trade obligations, and we will continue to work with GAC through the upcoming consultation process.”
Bond went on to say that they “support the growth of the industry, and we will defend it against this challenge.”
“In B.C., the number of liquor stores selling imported alcohol has increased significantly since 1987 from 344 to approximately 1,100 today (1,106 for all imports plus 11 stores selling imported wine) 100% B.C. wine sales represent approximately 17% of all provincial wine sales.”
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