The move could reopen Canada’s market to American wine, beer and spirits after more than a year of restrictions, but whether consumers will welcome them back remains to be seen
Prime Minister Mark Carney has asked Canada’s premiers to return U.S. alcohol to provincial liquor-store shelves as Ottawa and Washington work toward a new trade agreement.
Nova Scotia Premier Tim Houston confirmed the request following a virtual briefing with Carney on Wednesday, as negotiators continued talks on a proposed Canada-U.S. deal that could avert a new round of 50 percent tariffs on a range of Canadian exports.
“It’s been an irritant, something that has really bothered the United States for so many reasons,” Houston told reporters. “Whether Canadians will actually buy it when it gets back on shelves, that’s a whole other discussion.”
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The request would mark a significant shift after most Canadian provinces removed U.S.-made wine, beer and spirits from government-controlled liquor stores in response to U.S. tariffs and trade pressure.
Alberta and Saskatchewan have been exceptions, while the remaining provinces have maintained varying restrictions on the sale of American alcohol. The bans have since become one of Washington’s most frequently cited complaints in the broader trade dispute. U.S. officials have pointed specifically to restrictions on American alcohol, alongside Canada’s supply-managed dairy system and other trade measures, as sources of friction in the relationship.
Could we see the return of U.S. alcohol on shelves across Canada soon?
For Ontario, the question is somewhat less straightforward than it was when the province first removed American products from LCBO shelves.
Premier Doug Ford has already indicated he would consider bringing U.S. alcohol back if Canada reaches what he considers a fair agreement with Washington—one that protects Ontario’s steel, auto, forestry, agriculture and manufacturing sectors. “We’d be more than happy to bring booze back on the shelves earlier,” Ford said earlier this month.
The emerging agreement remains short on publicly released details. Carney has said the deal would build on Canada’s existing trade advantages, while U.S. Trade Representative Jamieson Greer described the latest discussions as positive. The threatened 50 percent tariffs, which had been scheduled to take effect Wednesday, have instead been paused while the two sides work toward finalizing the agreement.
For Canada’s wine, beer and spirits industry, however, the return of U.S. products would represent more than a symbolic trade concession. American producers have been effectively shut out of large portions of the Canadian retail market, while Canadian consumers and retailers have adjusted to a marketplace with greater emphasis on domestic and non-U.S. products.
Whether those American products would regain their former place on Canadian shelves is another question entirely.
Houston’s observation may prove particularly relevant. Even if provincial governments agree to restore U.S. alcohol sales, putting the products back on shelves does not necessarily mean Canadians will put them back in their shopping carts.
For now, the request is just that: a request. Carney cannot unilaterally order provinces to resume sales, and individual premiers will ultimately determine how their respective liquor systems respond. Quebec Premier Christine Fréchette, for example, has already indicated that her province will make its own decision on whether to restore U.S. alcohol sales.
The bigger question is whether American wine, beer and spirits will once again become a meaningful part of Canada’s beverage-alcohol landscape—or whether more than a year of changing consumer habits has permanently altered the market, as per our senior editor, Tod Stewart’s report earlier in the year.
With the trade agreement still taking shape, that answer remains on ice.
Stay tuned…
– with files from the Canadian Press
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