This article written in french by Nicholas Pereira was automatically translated using AI
Small Canadian craft alcohol producers continue to face major obstacles when trying to sell their products in other provinces, despite recent agreements intended to ease trade restrictions.
This is highlighted in the report An Intoxicating Regulatory Environment: Interprovincial Trade Barriers for Alcoholic Beverages and Their Impact on SMEs, published by the Canadian Federation of Independent Business (CFIB).
The report reveals that “outdated rules and complex processes continue to prevent Canadian producers from accessing new markets, even when it involves a neighboring province,” creating “a system that is difficult to navigate, increases costs, limits consumer choice, and hinders the growth of small producers.”
“Rigid interprovincial rules and excessive red tape prevent our small producers from expanding into other provinces, forcing them to forgo significant growth potential,” says Jasmin Guénette, Vice-President of National Affairs at the CFIB, in a press release.
He cites the example of American alcoholic products that were removed from store shelves in response to U.S. tariffs, but the available shelf space could not be filled with products from across the country.
Requests
There are currently more than 1,500 breweries, wineries, and distilleries in Canada. Among the most frequently cited constraints are:
• an excess of administrative paperwork and complex regulations;
• a lack of transparency and communication from regulatory bodies;
• significant variability in markup rates;
• high shipping costs.
“Redundant lab testing requirements, variable markup rates, and complex rules all drive up costs and reduce business opportunities for Canadian entrepreneurs,” says Vincent Paquet, Senior Policy Analyst at the CFIB. “Allowing direct-to-consumer alcohol sales would be a major step in the right direction.”
Indeed, the CFIB is calling on provinces to uphold the commitments made under the Canadian Free Trade Agreement (CFTA) and recent memorandums of understanding aimed at enabling direct sales of alcoholic beverages to consumers by May 2026.
It also recommends greater transparency in listing and pricing processes, the creation of an interprovincial working group committed to reforming alcohol trade, and improved access to information for SMEs regarding interprovincial requirements.
“Our provincial elected officials must set aside protectionism and take action to support genuine free trade in Canada. It’s absurd that Canadians have difficulty accessing alcoholic products made in their own country. Given the tariff environment imposed by the United States, it is more important than ever to implement these reforms quickly,” concludes Guénette. (N.P.)
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