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

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

Conner Gilkin, 5, shows of some of his newfound loot to buddy Jax Dul, 7, during the Lake Cowichan treasure hunt on Saturday, June 5. (Kevin Rothbauer/Gazette)
Weekly hunt has Lake Cowichan digging for treasure

Gold? Silver? Candy? Andrew Braye has stashed away a range of prizes for eager treasure hunters

A new laundromat is opening in the Peters Centre in Lake Cowichan. (file photo)
Peters Centre getting all cleaned up

Laundromat being developed at the Neva Road site

Robert's column
Robert Barron column: Skyrocketing house prices a tragedy

North Cowichan councillor Rosalie Sawrie brought an interesting perspective to a discussion… Continue reading

Soaker hoses laid down over corn seedlings, soon to be covered with mulch, will see to the watering needs of the bed through any summer drought. (Mary Lowther photo)
Mary Lowther column: Investing in soaker hoses is money well-spent

No-till gardening has a distinct advantage during drought

Karl McPherson, left, and Mary Morrice are the new head coach and general manager, respectively, at the Duncan Dynamics Gymnastics Club. (Kevin Rothbauer/Citizen)
Manager charts a new course for Duncan Dynamics

More recreational programs to join competitive teams

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

Most Read