After the recent exclusion of alcohol from an agreement aimed at eliminating interprovincial trade barriers, some individuals in the alcohol industry express confusion and disappointment, stating that they have been waiting for provinces to implement this change for a considerable period.
The agreement, signed by the provinces, territories, and federal government on Wednesday, pledges to lift restrictions on the movement of certain goods across Canada. Notably, food and alcohol were omitted from the agreement, despite longstanding advocacy within the alcohol industry to remove these barriers well before U.S. tariffs prompted a national push for smoother interprovincial trade.
Adin Wener, the managing partner of Henderson Brewing Company in Toronto, expressed profound disappointment, emphasizing the need for a unified country, especially in light of tariffs. He highlighted the missed opportunities for breweries to explore new markets, with some breweries halting shipments to the U.S.
While some provinces have pledged to streamline direct-to-consumer alcohol sales between provinces by next spring, the industry’s impatience is growing, and there are doubts whether this will materialize.
Canada’s alcohol industry faces various economic challenges, including declining alcohol consumption among consumers, rising input costs due to inflation, and increased prices of aluminum cans, particularly impacting beer producers due to U.S. tariffs.
Interprovincial trade barriers further complicate matters for the industry, leading to additional shipping costs, diverse packaging requirements, and varied pricing structures for alcohol across provinces, delaying the availability of products on shelves.
In July, several provinces signed a memorandum of understanding to facilitate direct-to-consumer alcohol sales with the aim of dismantling these barriers by May 2026. However, industry representatives stress the need for concrete action, as delays in addressing these issues have a significant impact on their operations.
Critics argue that by excluding alcohol from the agreement, provinces are perpetuating the same issues that led to the creation of interprovincial trade barriers. These exclusions create a complex web of regulations that hinder trade and benefit provincially regulated retailers, such as Ontario’s LCBO and Quebec’s SAQ.
Despite calls for the removal of interprovincial barriers to facilitate the movement of Canadian wine across provinces, challenges persist, with concerns over revenue generation from alcohol sales and the impact on local businesses and tourism.
While some progress has been noted in addressing these barriers, there are doubts about the willingness of all provinces to commit to their removal simultaneously, indicating a potential roadblock in achieving comprehensive interprovincial trade reform.