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Title : U.S. officials demand WTO act against 'discriminatory' B.C. wine rules, again
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U.S. officials demand WTO act against 'discriminatory' B.C. wine rules, again

Two high-ranking United States officials have asked the World Trade Organization (WTO) to form a dispute panel on British Columbia’s rules governing the sale of imported wine, calling the province’s regulations “discriminatory” and “unacceptable.”

A joint statement issued by U.S. Secretary of Agriculture Sonny Perdue and U.S. Trade Representative Robert E. Lighthizer on Friday challenges the current rules for wine sales in B.C. grocery stores. The request follows two previous complaints U.S. officials have brought to the WTO over the issue.

“Discriminatory regulations implemented by British Columbia are unfairly keeping U.S. wine off of grocery store shelves, and that is unacceptable,” Lighthizer wrote in the statement. “Canada is an important market for U.S. winemakers.”

U.S. officials first requested WTO dispute settlement consultations on wine B.C. in grocery stores in January 2017, citing a breach of Canada’s WTO commitments and damage to U.S. wine producers.

 

U.S. wine exports to B.C. totaled US$56 million in 2017, and U.S. wine had a 10 per cent share of the B.C. market, according to figures included in the statement.

Lighthizer and Perdue are taking aim at a rule that prevents non-B.C. wine from being sold on grocery store shelves, relegating such products to a separate “store-within-a-store” with a separate cash register.

“Our wine producers rely on export markets and they deserve fair treatment, especially by our northern neighbors in British Columbia,” Perdue continued in the statement. “The practice of discriminating against U.S. wine is unfair and cannot be tolerated any longer.”

Wine is on a lengthy list of Canada-U.S. trade irritants that Lighthizer has been vocal about. Canada’s policy on dairy, its automotive industry and intellectual property rules are among his other sticking points.

Alcohol regulations in Ontario and Quebec were named alongside B.C. in the U.S. government's latest annual report on trade barriers. The document, which was published by Lighthizer’s office, highlights a perceived advantage for Quebec’s craft wine producers, and notes the U.S. is analyzing conditions in Ontario after wine was allowed to be sold in grocery stores in 2016.

The report also suggests high provincial taxes on alcohol imported from south of the border are hurting U.S. producers.

“This inhibits Canadians from purchasing U.S. alcoholic beverages while in the United States,” the report reads.

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