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Tearing Down Canada's Internal Trade Barriers

A Stronger Wine Industry Starts at Home
Lightning Rock Winery Selection

Canadians across various industries—forestry, manufacturing, agriculture, and more—have witnessed firsthand how a single piece of legislation or a new tariff can upend business plans and threaten livelihoods. It’s frustrating to see hard-working people caught in the middle of international disputes, forced to deal with sudden policy shifts that are often beyond their control. While it’s necessary to address and adapt to these external pressures, we must not let them overshadow a problem that lies entirely within our own borders: the needless interprovincial restrictions that prevent Canadian wine from being sold freely across our provinces.

The Problem – Provincial Markups and Restrictions

Each province in Canada has its own set of regulations and markups that make it nearly impossible for Canadian wineries to sell directly to consumers or retailers outside of their home province.

  • Ontario imposes a markup of up to 71.5% plus recycling for a total of 75% through the LCBO, treating BC wine as if it were foreign.
  • Alberta just opened its market to BC wines with a $3.91 per liter markup plus a $0.17 per bottle recycling and deposit fee.
  • British Columbia supports local wineries with reduced markups and imposes a markup on wholesale shipments into the province. However, it does allow wineries in other provinces to ship wine direct to consumers in BC without collecting any markups, taxes, deposits, or other fees.

This system makes little sense in a country that prides itself on international free trade agreements but restricts its own domestic market. Why are we allowing provinces to block Canadian wine from flowing freely when we claim to be a united country?

The Solution – True Free Trade Within Canada

If we truly want to strengthen the Canadian wine industry and provide consumers with greater choice, we must eliminate these provincial restrictions. The benefits of doing so are clear:

  • A Stronger Domestic Market: Wineries in every province would gain access to a national customer base, reducing dependency on local markets that may fluctuate due to climate conditions or economic downturns.
  • More Consumer Choice: Wine lovers across Canada should be able to purchase wines from any province without restrictions or inflated prices due to provincial markups.
  • Economic Growth: Removing interprovincial trade barriers would create jobs, boost tourism, and increase tax revenues as more Canadians engage with and support our domestic wine industry.
 

The Supreme Court of Canada’s decision in the Comeau case missed an opportunity to reaffirm true free trade within our country. However, provincial governments still have the power to come together and create a framework that allows Canadian wine to flow freely, just as beer and spirits do in some cases.

It’s Time for Action

While the hardships from U.S. tariffs are understandably top of mind for many, focusing exclusively on external conflicts does a disservice to our own producers and consumers. The real challenge to our industry isn’t just at the U.S. border—it’s also the roadblocks we’ve built between provinces.

I have lobbied the governments of Alberta, BC, and Ontario on this issue, speaking to both the government and the official opposition, yet we still have nothing. The real issue lies with the liquor control boards—BCLDB, AGLC, LCBO, and SAQ—who operate like provincial fiefdoms, prioritizing excessive tax markups while protecting their own producers. If governments insist on collecting more than just sales tax on made-in-Canada wine, we could at least use Alberta’s model—but we need to act quickly.

Canada is rich in natural resources, yet our internal trade policies stifle economic potential. Other countries—like those in Europe, Australia, and New Zealand—do not treat wine from different regions of their country as foreign. Why should we? 
It’s time to tear down these barriers and finally allow Canadian wineries to compete fairly within their own nation.
 
The wine industry in Canada has incredible potential—let’s not let outdated policies hold us back. 

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