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The American government is challenging the policies regarding wine on British Columbia grocery store shelves.
According to MLA Norm Letnick, who's also the provincial Minister of Agriculture, the U.S. has officially launched a WTO (World Trade Organization) challenge over the policy on wine sold in B.C. grocery stores. The next step is a consultation between the two federal governments.
"Both the Canadian government and the B.C. government take the consultation very seriously and of course our obligations with our trade agreements with our partners seriously as well,” said Letnick.
Sales of American wine has increased over 35% in the last four years, according to Letnick. That leaves him wondering how the sale of B.C. wine has harmed sales across the border (which they suggest) at all.
"We're talking less than 60 stores in B.C. that have only B.C. wine on shelves when there are over 1,100 other stores that sell American wine,” he explained. “I think they have quite a steep uphill battle to prove that we are actually causing them some negative impact.”
As part of NAFTA, the government negotiated 60 licenses, allowing establishments to sell only B.C. wine, most which have been held by the B.C. Wine Institute and by the Government of B.C.
Some of the Wine Institute licenses have been transferred over to grocery stores and the government has auctioned some of theirs off to businesses.
"Our goal, of course, is to stay under- and we will stay under- the 60 limit that was negotiated at the time of the North American Free Trade Agreement,” Letnick said.
If they are in line with those trade obligations, it’s possible that nothing will have to change.
"Our number one priority is to see that we continue to grow an opportunity for our grape growers because their job is on the line as well, as well as our wine producers,” Letnick explained. “We think we have a great product in B.C. wines, recognized around the world as one of the best in the world and we want to showcase those in our grocery stores.”
"We have a great trading relationship with the Americans and I'm sure that will continue despite this skirmish.”
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