The first promise made by the federal Liberals in their last election platform was to unite the country by building one economy, so that Canadians can work wherever they want and goods can move freely from coast to coast. The Canada Strong plan stated that “unleashing free trade” would “give ourselves much more than any foreign government, including the U.S., can ever take away,” expanding the economy by up to $5,000 for every citizen.
Low-Hanging Fruit: Alcohol Trade
The low-hanging fruit of this extravagant pledge was to remove internal trade barriers on the sale of alcohol, allowing craft breweries and wineries across the country to sell directly to consumers in different provinces. The chosen deadline to bring the new regime into effect was the end of May this year.
To no one’s great surprise, the target date was missed. Internal Trade Minister Dominic LeBlanc issued a statement late last week expressing concerns about the failure to launch. He said the provinces and territories were to blame. The federal government has done its part, he said, by amending the Importation of Intoxicating Liquors Act and extending alcohol excise duty relief for brewers, distillers and wineries.
Ottawa Washing Its Hands
“It’s time to act,” he said, meaning it is time for everyone else to do something. It was an appeal that sounded very much like Ottawa is washing its hands of the subject, having belatedly discovered the federation is more like a loose alliance of warring tribes than a single federal state.
Last July, all 10 provinces signed a memorandum of understanding that would allow residents to order beer, wine and spirits directly from producers in other provinces. But only three provinces have followed through. The deadline passed on Sunday, and direct-to-consumer shipping is only permitted by B.C., Manitoba and Nova Scotia (Alberta has a deal with B.C. but restricts shipping from elsewhere). Ontario, New Brunswick and P.E.I. have amended provincial legislation but have not yet implemented new policies.
Provincial Monopolies Blamed
The suspicion among winemakers like Ron Kubek, who owns Lightning Rock winery in B.C.’s Okanagan Valley, is that provincial liquor monopolies have urged their politicians to stall, under threat of lower dividends. “It’s just asinine that, in 2026, we’re still dealing with provincial monopolies that date back to Prohibition and we’re still dealing with the attitude of how much tax we can get out of the Canadian taxpayer before they finally revolt,” said Kubek.
Kubek produces award-winning pinot noirs that he can export to the U.S. tariff-free under the Canada-U.S.-Mexico free-trade agreement. However, sales in Ontario’s LCBO or Quebec’s SAQ face a 71 per cent to 130 per cent markup, which would force him to accept a wholesale price lower than his production cost.
The federal Liberals promised to eliminate these barriers, but their inaction suggests they have abandoned the cause. With only three provinces implementing direct-to-consumer shipping, the dream of a truly united Canadian economy remains elusive. Critics argue that the government must do more than blame provinces; it must take concrete steps to enforce free trade within Canada.
