Will Canada end up being punished for the US alcohol ban?
Legislation calling for an investigation into Canada’s limits on importing US alcohol has been proposed by congresswoman Claudia Tenney. db reports.
The Canadian provinces’ restrictions on the importation and distribution of US alcoholic drinks were made in response to the trade war and tariffs the US launched against Canada last year.
The US ban was, at the time it was implemented, considered to be an “act of consumer resistance” by Canadians and saw Canada’s wine producers in no rush for US-made alcohol to return, describing the “tremendous” impact the ban was having on domestic sales. Additionally, it was levelled that the UK might also have seen some benefit from the ban as well.
CANADA Act
According to Republican Tenney, the restrictions were “discriminatory” and this has led to her introducing the Combating Attacks on our National Alcoholic Drinks by Allies (CANADA) Act.
The Act is set to see a US trade representative initiate a Section 301 investigation within 30 days into the Canadian provinces’ recent actions.
Nearly all of Canada’s liquor boards have prohibited or restricted the importation and distribution of US alcoholic drinks, a move that has impacted US producers and limited access to Canada as an export market.
The CANADA Act builds on comments from US trade representative ambassador Jamieson Greer, who stated that resolving the Canadian provinces’ discriminatory treatment of American alcohol producers would likely require an enforcement action. During a recent committee hearing, Greer noted that only two countries had retaliated economically against the US over the past year: the People’s Republic of China and Canada.
To go ahead, the legislation will ultimately require the US trade representative to consult with affected manufacturers, industry stakeholders, and federal agencies throughout the investigation and provide reports on the situation back to Congress.
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Doubling down on the unfairness of the situation and her reasons for pursuing the legislation, Tenney said: “Canadian provinces cannot be allowed to hold American wineries, breweries, and distilleries hostage and attempt to ransom them.”
‘Producers deserve fair access’
She then highlighted that the knock on effect had been felt and stated: “American wineries, breweries, distilleries, and other beverage producers deserve fair access to Canadian markets, not discriminatory treatment from one of our closest trading partners. Nearly all of Canada’s provincial liquor boards have unfairly targeted US producers and harmed hardworking American businesses due to unrelated policy issues.”
Tenney added: “Beyond the harm they’ve caused to American businesses, these prohibitions are an active impediment to a productive and smooth USMCA renegotiation process. Given that the Canadian provinces have refused to act in a constructive manner, I introduced the CANADA Act to ensure the United States takes the necessary steps to hold Canada accountable until the provinces decide to drop their unjustifiable import bans. America must always stand up for our producers, our workers, and fair trade.”
The legislation is supported by the trade associations such as the Wine Institute, American Craft Spirits Association (ACSA), and Wine America.
‘Caught in the middle of a trade dispute’
ACSA CEO Emily Pennington said: “For too long, America’s craft distillers have been caught in the middle of a trade dispute that has nothing to do with them. We appreciate congresswoman Tenney’s leadership in bringing renewed attention to the discriminatory treatment of US craft spirits in Canada and hope this legislation encourages serious negotiations that restore fair market access for American producers.”
WineAmerica executive director Michael Kaiser. added that the association “greatly appreciates” Tenney’s “steadfast support of the American wine industry”.
Kaiser pointed out that “losing the Canadian market for our products has hurt wineries from Willamette Valley in Oregon to the Finger Lakes in New York. The CANADA Act is a good step to re-opening that market to American wines”.
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