Canadian booze-makers hope U.S. tariff threats help smash trade barriers at home


Threats of two prime ministers to ban American alcohol if Washington imposes their threatened 25 percent tariff interprovincial barriers.

BC Prime Minister David Eby, such as Doug Ford of Ontario, says he is willing to stop all alcohol products made in the border if the Trump administration tariffs are activated on Saturday.

“If they are not going to comply with our commercial agreements, then we do not,” Eby told journalists last week.

But this hard talk has a long -standing protectionism questioning within the country that makes it difficult to sell wines, beers and spirits made in Canadian between provinces.

“Sometimes it is harder BC and the Alliance of Canadian Artisanal Distilators.

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BC Prime Minister David Eby threatened to ban US alcohol in the province if President Donald Trump imposes a 25 percent rate on Canadian goods. But Canadian artisanal distilters say it could be an opportunity to change interprovincial liquor restrictions.

Dyck and others in the alcohol industry, such as BC wine producers, have advised for a long time to loosen and optimize commercial rules between the provinces. They hope that the threat of the United States.

“Maybe this is the time. This is the catalyst for us to see interprovincial trade,” Dyck told CBC News.

Many barriers

There is a reason why you do not see much came from again on BC or BC Gin in the stores in Quebec.

“We simply do not know how to trade among us,” said Sylvain Charlebois, a professor at the University of Dalhouse in Halifax who investigates the distribution of food.

Charlebois says that the provinces and territories have prohibitions, restrictions and rules on the shipment, storage and labeling, to name just a few things, which make people and suppliers import alcohol products outside the province. The largest, Ontario and Quebec markets, he says, have the most restrictive rules to protect their almost alcohol distribution monopolies.

“There are barriers. Some provinces have really been signed to open their markets,” he said, citing Nova Scotia, Saskatchewan and a recent pilot program between Alberta and BC as examples. “But Center for Canada is not necessarily interested in sharing sharing its customers.”

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In her first informative session of the White House, press secretary Karoline Leavitt said that, according to her conversation with the president of the United States, Donald Trump, her plan to slap 25 percent of tariffs in Canada on February 1 is “Still in the books.”

“It has been a fight a bit over the years.”

That is why he says that some alcohol vendors prefer to buy from outside Canada, especially the United States, which has less cheaper and more varied rules and products.

“Many companies really prefer to deal with the United States,” Charlebois said.

Dyck distillers are frustrated when they see liqueur stores that are full of international products, with few Canadian manufacturing options.

“Why does each restaurant have Jack Daniels? It doesn’t feed Canada’s economy,” Dyck said.

Politicians “say that we need to buy Canadians, but then they must update and repair regulations to allow Canadian products to have the same privileges as US, European and Australian and South American products,” said Darryl Lamb, Legacy Liquor Liquor brand manager Liquor , the largest of the private liquor shops of BC. The province has a hybrid system with 198 public liquor stores, plus 674 private liquors or cold beer and wines stores.

Lamb says that the provincial rules make it expensive for him to import spirits or came out of province.

A man speaks in front of a group of microphones. The interior of a store is visible in the background.
Jeff Guignard, executive director of the BC drinks alliance says that Canada imports around $ 400 million in alcohol in the United States per year. (Justine Boulin/CBC)

A hypothetical bottle of $ 50 of wholesale wholesale wholesale would be sold for $ 60.17 in Alberta after taxes, he says, but would cost $ 149 on BC, having been taxed in 198 percent.

It also feels undermined by online sales that influence provincial restrictions and taxes by selling Alberta alcohol of lower tax directly to consumers.

At the same time, Lamb cannot offer customers a wide variety of products outside of province because BC limits the products that their public liquor stores are not storing.

He says that the main brands stored in BC liquor shops are exempt from rules that force private liquor shops to order artisanal spirits in the case, at a prohibitive shipping cost.

In Alberta, liquor owners complain about an interprovincial agreement that allows the 300 BC wineries to sell directly to Alberta, but only consumers. The agreement, which is being tested for a year, gives Alberta a part of the applicable taxes. But retailers say they feel squeezed by online vendors that are allowed to send directly to consumers, while facing costs and restrictions that prevent many BC wines.

For many suppliers, the possibility of prohibiting the cheapest American products they trust is problematic.

Lamb points out that the BCS wine industry is fighting: local grape producers have been affected by extreme climatic events and smoke from forest fires due to climate change, and currently depend on the purchase of US grapes.

“Canadian wine cannot feel its own shelf at this time,” Lamb said. “It’s panting.”

Jeff Guignard, Executive Director of the Bridge licensees, representing BC Bars, restaurants, all private vendors and cannabis sellers, says that Canada imports around $ 400 million in alcohol in the United States per year. If that disappears, he says that liquor sellers would fight.

“There has never been a better time for governments to look for ways to stimulate interprovincial trade and eliminate any barrier,” Guignard said, but warned that liquor buyers would now have difficulties to replace US bottles. Uu. With affordable Canadians alternatives As “economies of scale” cannot compete in the United States

“Many consumers like Jack Daniel’s de Tennessee. If that is no longer on our shelves, yes, we can try to direct it to a replacement product, but that will frustrate that consumer and they may have to spend a little more.” saying.

Several bottles of liquor are seen on store shelves. An exhibition shelf in the foreground says 'BC Craft Spirits'.
A bottle of national whiskey sold for $ 60 in Alberta would cost $ 149 in BC after taxes, says Darryl Lamb, Legacy Liquor Store Store of Vancouver. (Yvette Brend/CBC)



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