Canada removes internal trade barriers for alcohol sales

Canada | Mr Trump’s punitive tariffs may have rendered Canadians a service. In an effort to make consumers “buy Canadian”, the government has reached a deal with the majority of provinces to allow Canadian booze to flow more freely across the country. Presently, Ontario breweries and distilleries, for example, cannot sell directly to customers in other provinces.

The move, reported on 6 March, is part of a host of changes being worked on by the federal, provincial and territorial governments to add CAD 200 billion (USD 140 billion) to the Canadian economy while it is rocked by US tariffs.

Alcohol is a relatively small aspect of internal trade, but it has long been a symbol of the fight to liberalise it. In 2018, the Supreme Court of Canada issued a controversial ruling in what became known as the “free the beer case” involving one Gerard Comeau. He was fined after he was caught bringing beer, he had bought in Quebec, back into his home province of New Brunswick. The ruling upheld the barriers to the free flow of alcohol across provincial borders.

A big step

All provinces, except Prince Edward Island, Newfoundland and Labrador, have now agreed to remove the archaic obstacles, which prevent their alcohol from being sold in other jurisdictions. Only Manitoba is already fully open to alcohol shipments to consumers across Canada. The provincial governments are expected to seal the agreement in a framework within weeks.

It remains to be seen where the provincial liquor boards will fit in (they set the rules on importation, distribution, and retail sales) and how that will affect the prices for out-of-province customers.