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

Paramedics union raises alarm over spike in out-of-service ambulances

Staffing shortages affecting service levels in Kootenays

RED resort announces new ski lift

Topping lift will add new ski area to resort, reduce bottleneck on Motherload chair

Update: Bodies recovered from Pend d’Oreille River crash

To help support the family, a fundraiser has been set up at Kootenay Savings in Fruitvale

Split council vote changes Castlegar infrastructure levy from five to seven years

Major industry will be seeing a tax increase over the next seven years as well.

South Okanagan-Kootenay MP calls federal budget ‘not bold enough’

Richard Cannings, MP for South OK and Kootenay communities says budget missed the mark

After mosque attacks, New Zealand bans ‘military-style’ guns

The gunman killed 50 in a Christchurch mosque

B.C. sees fourth straight day of record-breaking warmth

Bob Marley said it best: The sun is shining and the weather is sweet

Okanagan man, Yorkshire terrier chased by coyote

Animal sightings have been reported around West Kelowna and the Central Okanagan

Having phone within sight while driving does not violate law: B.C. judge

The mere presence of a cell phone within sight of a driver is not enough for a conviction, judge says

B.C. lottery winner being sued by Surrey co-workers

They claim he owes them $200,000 each, in a lawsuit filed in B.C. Supreme Court in Vancouver

Pot industry welcomes decreased edibles tax, but unhappy medical tax remains

Taxes can increase the cost of medical cannabis by as much as 25 per ceny

‘It has to send a message:’ Broncos families await sentencing for truck driver

Jaskirat Singh Sidhu pleaded guilty to 29 counts of dangerous driving and apologized in court

MPs continue voting marathon as Tories protest shutdown of Wilson-Raybould motion

Multiple MPs have resigned from Trudeau’s Liberal cabinet

Canucks hang on for 7-4 win over Senators

Horvat nets 2 for Vancouver

Most Read