Provinces Blow Past Deadline to Dismantle Barriers to Cross-Border Wine, Spirits Shipments
Provinces vowed to open up direct-to-consumer shipments of wine, spirits, beer and other alcohol products by the end of May, but as of June 1, the task remains incomplete. The agreement, signed last July by 10 provinces and the Yukon, aimed to implement new rules by the end of May 2026, yet a patchwork of regulations persists.
B.C. Wineries and Distilleries Still Waiting
B.C.’s wineries, distilleries and craft breweries are still waiting for provinces and territories to tear down the barriers to direct consumer shipments of alcohol that they promised almost a year ago. Cutting red tape for trade in alcohol across borders was seen as an easy win in the high-profile push for interprovincial free trade.
As of June 1, a patchwork of rules remains. B.C. allows consumers to receive direct shipments of wine from other provinces without penalty, but has only inked a reciprocal deal with Alberta so far. Spirits remain another matter entirely.
Industry Frustration Grows
“I doubt if it’ll happen this summer, so it’s just lost opportunity,” said Mike Raffan, general manager of Township 7 Vineyard & Winery. “We’re in a country under attack. We need to capitalize on (and) take the easy stuff.” Raffan, whose winery has locations in Langley and Summerland, wanted to be optimistic about last July’s agreement but was skeptical that it might just be “political showmanship.”
“So far, a year later, my pessimism has been justified,” he added. Raffan said the simplest solution would be for all provinces to collect sales tax on direct shipments from a winery or distillery, then exempt those shipments to another province without having to flow through the liquor distribution system of another. “Every province (is) protecting their monopoly, and frankly that’s a dumb idea,” Raffan added.
Federal and Provincial Roles
Dominic LeBlanc, federal minister for internal trade, in a statement issued just before the memorandum’s May 31 deadline, said Ottawa has done its part to take down federal limitations with an amendment to the Importation of Intoxicating Liquors Act. “The remaining work lies with provincial and territorial governments, as they look to complete negotiations towards a memorandum of understanding,” LeBlanc said. “It is time to fulfil these commitments and deliver the benefits Canadians and businesses have been promised.”
In his statement, LeBlanc credited Manitoba and New Brunswick with taking leadership in fully opening up direct-to-consumer sales, and noted that Ontario and Nova Scotia have made progress with a bilateral agreement. B.C. has also made some progress with bilateral agreements on some products with both Alberta and Saskatchewan.
The province’s Ministry of Agriculture and Food did not respond to Postmedia News questions on the matter by deadline.
Industry Consultation Lacking
One problem with the agreement was that provinces signed on to it without consulting industry, said Tyler Dyck, president of the Canadian Craft Distillers Alliance. Dyck, who is also CEO of Okanagan Spirits Craft Distillery, which has operations in Kelowna and Vernon, said formulating a deal with provinces that all have different production agreements with producers and their own liquor-distribution monopolies is difficult.
The lack of progress underscores the challenges of interprovincial trade liberalization, even for seemingly straightforward products like alcohol. With the deadline missed, industry stakeholders are left hoping for renewed political will to fulfill the promises made nearly a year ago.
