A dozen grocery stores around B.C. will have a VQA-only wine licence.

B.C. wine in grocery stores target of U.S. trade complaint

Californian vintners argue exclusive access for B.C. VQA wines is 'discriminatory.'

American wine makers want to overturn the province’s decision to let select grocery stores exclusively sell B.C. VQA wine, arguing shoppers should be able to buy international wines as well in those outlets.

If successful, the challenge under international trade agreements could transform or even put a cork in the centrepiece of the B.C. government’s liquor policy reforms.

The California Wine Institute submitted its complaints to the Office of the United States Trade Representative in an Oct. 27 letter stating that the regulations were “blatantly discriminatory.”

The B.C. government announced in 2014 that as of April 1, 2015, grocery stores would be able to apply for a permit to sell B.C. wine on their shelves under one of two different models.

A VQA-only licence allows stores to bypass the rule they be at least one kilometre from liquor stores, as well as avoiding the ‘store within a store’ model set out for non-B.C. wine.

California Wine Institute vice-president and international trade counsel Tom Lafaille said the organization has opposed the regulations since their implementation.

“We were assured by the B.C. government and industry that imported wines would still be able to be sold in B.C. grocery stores,” Lafaille said, adding that this two-part model doesn’t satisfy that promise.

“We’re working with industry and governments… this is an international effort to free up grocery store shelves for non-B.C. wine.”

The VQA-only permit goes against Canada’s international trade commitments, said Lafaille. The submission to the Office of the U.S. Trade Representative noted that the U.S. and Argentina, Australia, Chile, Mexico, New Zealand and the United Nations filed formal objections with the B.C. government challenging the new system on April 29, 2016.

While the future of the North American Free Trade Agreement has been called into question by U.S. President-elect Donald Trump’s promise to renegotiate or rip it up, U.S. wine lobbyists aren’t relying solely on NAFTA.

The letter stated that as new regulations appear to favour B.C. wine over imported wine, the nations question “whether they are consistent with Canada’s commitments as a member of the World Trade Organization – specifically the national treatment obligations under Article III:4 of the General Agreement on Tariffs and Trade 1994.”

But the province disagrees.

“To our knowledge, no regulatory tariff action has taken place and no trade injunctions has been filed,” said Ministry of Small Business and Red Tape Reduction communications director Bill Anderson.

“The B.C. wine on shelves mode will never see more than 60 partners and the liquor licences that are in these grocery stores are the same VQA licences that have existed in B.C. for years.”

Currently, Anderson added that only 12 grocery stores – six per cent of the total amount in B.C. – will have VQA-only licences, including one in South Surrey.

 

 

@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter

 

 

 

Just Posted

West Fraser to reduce sawmill production in Quesnel, Fraser Lake

The move will affect 75 employees in Quesnel, 60 in Fraser Lake

Column: the 4-H way of life

Local 4-H member Jacinta Meir on what being a member means to her

Local soccer player Sydney Kelly receives prestigious Premier’s Award

The 18-year-old trained with UNBC’s soccer team while in high school

2018 marks 100 years since the end of World War I

Quesnel legion’s historian Doug Carey documents some of the atrocities of WWI

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

People flocking to Vancouver Island community to see hundreds of sea lions

Each year the combination of Steller and California sea lions take over Cowichan Bay

Many child killers have been placed in Indigenous healing lodges, stats show

As of mid-September, there were 11 offenders in healing lodges who had been convicted of first- or second-degree murder of a minor

Sex-misconduct survey excludes vulnerable military members: Survivors’ group

But It’s Just 700 says recent research has shown young military members and those on training are among those most at risk for sexual violence

Expect no quick end to Canada-wide cannabis shortages, producers warn

Provinces including British Columbia, Alberta have all reported varying degrees of shortages

Want to buy your first home? Move to Kamloops or Prince George

Kamloops, Prince George, Campbell River and Langford are the only other markets in the study without gaps between required and actual income in owning a home.

Seniors in care homes may not get referendum ballots in the mail: Seniors Advocate

Voters list was established in May 2017, so if they moved into a care home since then….

Feds give $2 million for anti-extremism programs in B.C.

Public Safety Minister Mike Farnworth said supporting efforts locally is key to prevention

Should the legal age for cannabis be increased to 21?

B.C. residents have a more mellow attitude to the age limit for pot – but 23 per cent want the legal age increased

Expect ride hailing in B.C. by 2020, Premier Horgan says

Taxi-style insurance option needed for part-time drivers

Most Read